Hey all,
A bit about me. I read a lot, I watch the markets, and I think about how to protect and grow money when the world changes. Right now, a lot of people are worried about prices going up, homes changing value, and what to do with savings. I’m going to walk you through what’s happening, why it matters, and practical steps you can take.
WHAT HAPPENED IN THE 1970s
I like to start with a story because it helps me remember facts.
In 1972 the median home price was about $22,000. By 1982 it had roughly tripled to $66,000.
In 1972 oil was about $3 a barrel; by 1982 oil was about $30 a barrel.
If you had $1,000 in 1972, inflation meant it became like $400 in real buying power by 1982 — about a 60% loss of value.
These things show how quickly savings can lose value if prices rise a lot.
RECENT NUMBERS YOU SHOULD KNOW
Since June 2020 the US dollar has lost roughly 25% of its purchasing power.
From about the start of 2020 to 2025, the price of a median US home went from around $320,000 to $462,000 — about a 45% increase.
A loaf of bread that cost about $1.40 in June 2020 can cost about $2.2 today — roughly a 55% increase in that item.
Inflation peaked in 2022 at very high levels (the highest since the 1980s), then fell; by 2025 it was a little above 3% but has shown signs of creeping back up.
In 2025 some big assets performed strongly: gold up ~70%, the S&P 500 roughly +12%, and Bitcoin up over 37%.
CPI vs CORE CPI (WHY THEY MATTER)
The government tracks inflation with the Consumer Price Index (CPI). But there are two versions you’ll often hear about:
CPI (headline) — includes everything people buy: food, energy, rents, medical bills, transport, etc.
Core CPI — removes food and energy so that the number is less jumpy month to month.
Why remove food and energy? Because those prices can swing a lot due to weather, wars, or one-off shocks. Central banks often watch core CPI more closely because it looks smoother and shows longer trends.
But I want to make this clear in plain words:
Food and energy affect real life a lot — they are not small.
Core CPI can hide big pain in the grocery store or gas pump for families.
Today, core CPI is “sticky” — it’s not coming down fast. The main reason is shelter (housing costs) and services.