Owning equities (through index funds) is one of the best ways to always beat inflation. They are the part of the economy that appreciates because of future returns, in future money, not past dollar amounts.
That said, most of current CPI "inflation" is not economy wide price increases, but comes from 1) car prices, because car manufacturers massively messed up and production is way down for the past two years, and 2) energy, which is from several global market issues. There's also housing, which is not in CPI, but that's also easily attributable to underproduction of housing since 2008 (and probably even for decades before that, honesty).
We are actually in incredibly good economic times, especially considering the massive destruction that the pandemic has wrought, and in the US, the lowered number of workers due to years of reducing immigration. I am glad people are not overly exuberant, but I with they were focused on the things that mattered more.
If that were the case that too much money was printed, then one might expect broad economy wide price inflation, but instead it's really focused only in areas that have supply bottlenecks.
But too much money printing wouldn't cause the major auto manufacturers to majorly underproduce less than they typically do, and it wouldn't cause energy to go up. Of the 5.5% "excess" points of inlfation, the breakdown of cost areas is:
2.1 vehicles (of which 1.6 is used cars)
1.8 energy
0.7 food
0.6 housing
And except for food, there are clear supply bottlenecks there. For food, beef farmers have been complaining about monopsony from meat processing plants for more than a decade. There's likely a small amount of rentierism going on there. As there is for the housing crunch. (Though housing also takes a long time to respond to changes in demand patterns, such as the one induced by the pandemic)
That said, most of current CPI "inflation" is not economy wide price increases, but comes from 1) car prices, because car manufacturers massively messed up and production is way down for the past two years, and 2) energy, which is from several global market issues. There's also housing, which is not in CPI, but that's also easily attributable to underproduction of housing since 2008 (and probably even for decades before that, honesty).
We are actually in incredibly good economic times, especially considering the massive destruction that the pandemic has wrought, and in the US, the lowered number of workers due to years of reducing immigration. I am glad people are not overly exuberant, but I with they were focused on the things that mattered more.