Sticky and flexible price inflation, YoY change (%)
Sources: Federal Reserve Bank of Atlanta; Refinitive Datastream. Sticky and flexible prices reflect the Atlanta Federal Reserve sticky and flexible consumer price indexes (CPI). If price changes for a particular CPI component occur less than every 4.3 months, that component is a “sticky-price” good. Goods that change prices more frequently are “flexible-price” goods. As of August 2021.
Sources: Capital Group, Bureau of Labor Statistics, Refinitiv Datastream. Inflation is measured by the Consumer Price Index for All Urban Consumers (CPI-U) as of 31/8/21. Commodity prices are as of 30/9/21.
Average annual returns at different inflation rates (1970-2020)
Sources: Capital Group, Bloomberg Index Services Ltd., Morningstar, Standard & Poor's. All returns are inflation-adjusted real returns. U.S. equity returns represented by the Standard & Poor’s 500 Composite Index. U.S. fixed income represented by Ibbotson Associates SBBI U.S. Intermediate-Term Government Bond Index from 1/1/1970–12/12/1975 and Bloomberg U.S. Aggregate Bond Index from 1/1/1976–31/12/2020. Inflation rates are defined by the rolling 12-month returns of the Ibbotson Associates SBBI U.S. Inflation Index.