Economics

How Do Treasury Inflation Protected Securities Work?

TIPS (Treasury Inflation-Protected Securities) give inflation protection. As assessed by the Consumer Price Index, the principal of a TIPS increases with inflation and falls with deflation. When a TIPS matures, the adjusted principal or the original principal, whichever is greater, is paid to you. TIPS pay a fixed rate of interest twice a year. Because

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Which Inflation Rate Is Used For Pension Increases?

This is because the state pension is regulated by the triple lock, which implies that payments increase in line with whichever of the following three is larger each tax year: 2.5 percentage points Inflationary pressures (measured by the consumer price index in the year to September) Average wage/earnings growth Are pension plans adjusted for inflation?

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