Good Investments
that are Right for You

How Much Do You Know About Inflation?

The facade of the Federal Reserve Bank.

Nagging inflation has been part of our daily lives for several years now.

However, most of us can recall the 2010s, when the Bureau of Labor Statistics reported that inflation averaged around 1.6% to 2.1% annually, and you rarely heard about a Fed meeting.1

Will that change as we move deeper into 2026? Will the financial markets remain on pins and needles every time a Fed meeting is near?

Take our quiz and see how much you know about inflation, which was once referred to as a “thief in the night.”

“And the angel said unto them, Fear not: for, behold, I bring you good tidings of great joy, which shall be to all people. For unto you is born this day in the city of David a Savior, which is Christ the Lord.” Luke 2:10-11

How Much Do You Know About Inflation?

1 / 8

Who said, “Inflation is always and everywhere a monetary phenomenon in the sense that it is and can be produced only by a more rapid increase in the quantity of money than in output.”2

2 / 8

During 2025, coffee was hard hit by inflation. What drove the price increase? Select the best answer.3

3 / 8

Over the five-year period between 2021 and 2025, what percentage of inflation was caused by housing and transportation? 4

4 / 8

In what year did the Bureau of Labor Statistics first publish the precursor to the modern Consumer Price Index?5

5 / 8

Former Federal Reserve Chairman William Martin, Jr., called inflation “a thief in the night.” At a modest 3% annual rate, how many years will it take for your money to lose 50% of its purchasing power?6

6 / 8

In 2025, Turkey had the highest annual inflation rate in Europe at 31%. Under such conditions, prices will double.7

7 / 8

Have you ever heard of Core CPI? It excludes food and energy from the monthly inflation calculation. Why? Pick the best answer.8

8 / 8

The Fed has said that its long-term target for inflation is 2% annually. Why is 2% the magic number for the Fed? Pick the best answer.9

Your score is

The average score is 0%

0%

Answer key:

  1. C
  2. D
  3. C
  4. B
  5. C
  6. C
  7. D
  8. D

 

6—7 Correct: Looks like you follow the Fed!

3—5 Correct: Pretty good. Inflation is tricky.

0—3 Correct: Economics may not have been your strong suit. We’re here to help!

  1. Investopedia.com, December 22, 2025
  2. FRBSF.org, 2026
  3. CNBC.com, October 31, 2025
  4. Bureau of Transportation, October 24, 2025
  5. BLS.org, 2026
  6. Schwab.MoneyWise.com, 2026
  7. Statista.com, 2026
  8. Investopedia.com, September 11, 2025
  9. FederalReserve.gov, 2026

Other Recent Articles

The Power of a Financial Plan

“Measure twice, cut once" is an old carpentry saying.

“Hello, It’s AI Calling”

With just 3 seconds of audio, some artificial intelligence software can mimic the tone, pitch, and cadence of a person’s voice.1

Passport to Investing

Some people have a desire to travel the world, while others would prefer to see the sights closer to home. There’s no right answer. It largely depends on your personality.

Other Articles Related to: ,

The Power of a Financial Plan

“Measure twice, cut once" is an old carpentry saying.

“Hello, It’s AI Calling”

With just 3 seconds of audio, some artificial intelligence software can mimic the tone, pitch, and cadence of a person’s voice.1

When Kids Move Back Home

Watching kids move into a college dormitory is a rite of passage that’s welcomed by many parents.

Creative Financial Center
2704 South Goyer
Kokomo, Indiana 46902

  • 800.745.7776
  • 765-453-9600

MEMBERS:  FINRA    FINRA’S BROKER CHECK    SIPC   |   Privacy Policy

Advisory Services are offered through Creative Financial Designs, Inc., a Registered Investment Adviser, and Securities are offered through cfd Investments, Inc., a Registered Broker/Dealer. Copyright 2021 © All rights Reserved.