Inflation is back in the news this year. While the U.S. inflation rate had remained low at about 2% since 2010, it has surged past 5% this year, pushing up prices and squeezing pocketbooks. Thankfully, there are a few ways to reduce the harmful impacts of inflation, and many Americans are already using one – homeownership. Here’s a look at what inflation is and how owning a home can offer some protection against it.

WHAT IS INFLATION?
Inflation is a general increase in prices and decrease in the value of money. When inflation occurs, products and services become more expensive on average. The more inflation there is, the more prices rise.A monthly or annual “inflation rate” is used to measure inflation. The government calculates the inflation rate using the Consumer Price Index (CPI), which tracks the prices of over 80,000 products and services.