Thumbs Down: Inflation Is Back

Physician's Money Digest, July31 2004, Volume 11, Issue 14

Tip:

If you think $2 for a gallon of gas isbad, how about $4 for a gallon ofmilk? According to a report in USAToday, the price spike in gasoline maybe the most eye-catching harbingerof the coming surge in inflation, butit's far from being the only one.Wholesale costs for food items likechicken and eggs have recently goneup by 20% or more and now thewholesale prices on big-ticket itemslike refrigerators are also seeing double-digit increases. Mortgage ratesare on the rise even as the cost of ahome continues its upward climb. If you're looking for a place to parkyour cash if inflation makes a comeback,look into money marketfunds. While these funds have beenlaggards as interest rates hit all-timelows, they should pay heftier yields asthe interest rates climb back up.