I believe that inflation can manifest itself in several ways. It can be in the form of asset class inflation. We talk about deflation in Japan even after sustained money printing. However, Tokyo is the second most expensive city in the world.

I strongly believe that purchasing power matters than the amount of dollars in hand. The purchasing power of the dollar has declined over the years against all hard assets.

It's also worth noting that the wage growth for an average American is in the range of 4% to 6%. However, for most Americans, inflation is nothing less than 5%. I am not talking about government published numbers. Be it healthcare cost, education cost...Inflation is higher than what the CPI suggests.