With high inflation and economic uncertainty all around, you may be wondering where to invest your money. The annual inflation rate for the 12 months ending in August 2025 was 2.9%, as per the U.S. Inflation Calculator. But the dollar’s purchasing power has fallen significantly over time. From 2020 to 2025 alone, the cumulative inflation rate was 25.2%. That means something that cost $100 five years ago would now cost $125.20.
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