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Inflation

Inflation
Since 1972, purchasing power has been seriously eroded by inflation. As you can see from the chart, a stamp cost four times as much today as it did in 1972...a half-gallon of milk, almost five times as much...an average car, also almost five times as much.
Even during relatively low inflationary periods your money loses purchasing power.
We've included "playing it too safe" in our list of common mistakes many investors make, because you can lose purchasing power if your investment is growing at less than the rate of inflation.
Inflation
Sources of cost data: Postage Stamp-U.S. Postal Service; Milk- U.S. Dept. of Labor, Consumer Price Index; Automobile - American Automobile Manufacturers Assoc.
* Projection based on current rate of inflation.
For more information, stop by your nearest Citibank branch to speak with a registered Wealth Management Consultant
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