How to Protect Yourself From Inflation

"Inflation is a persistent increase in prices. "

-- TheStreet.com Glossary (Full definition)

The following are inflation-related insights and investable ideas TheStreet.com.

From Advice: Even Mild Inflation Should Scare You:

Our average historical inflation rate, going back to 1913, is an innocuous looking 3.42%. But that "tolerable" rate adds up to total of more than 2,000% inflation! Or to put it another way, a dollar today is only worth 4.8 cents in 1913 dollars.

What happened to the value of our money? Inflation has eaten away at our buying power. The government took our money by stealth, in small increments, by the secret tax that inflation enacts on all our savings. The more money government "creates," the less valuable our existing money becomes.

Read the full article.

They Just Don't Get Inflation! (Video)

Marek Fuchs grinds his heel into those who don't mention August price drops when reporting July's increases.

To watch the video, click the player below:

Plus, don't miss They Just Don't Get Inflation! (May 23: Fuchs cries a river over headlines about wholesale inflation being tame, not lame.) on TheStreet.com TV.

From Making Sure Investments Beat Inflation:

With inflation on the rise and "safe" investments offering paltry returns, it's important to make sure you're not actually losing money on your CDs, money-market accounts or bonds. So where should investors stash their loot?

"Go with a good bond fund or money-market fund," says Christine Benz, director of personal finance at Morningstar.

Though money-market yields are not quite as attractive as CDs, investors have the flexibility to move cash around if interest rates improve. When choosing funds, it might be wise to look at tax-sheltered investments like municipal bonds to avoid a "double whammy with inflation and tax costs," Benz says. Another important factor to consider is the expense ratio, which shows how large the fees are.

If you're looking to lock in rates for a bit longer -- say, three to five years -- municipal and agency-backed bonds might be a better strategy, according to Benz. "They have been unduly beaten down and have some of the best ... managers," she adds, citing renowned bond investor Bill Gross, now managing director of Pimco, as an example.

There are also inflation-protected investments, which guarantee positive real returns but still might not offer the best yield over the long-term. For instance, the Vanguard Inflation-Protected Securities Fund (VIPSX Quote) has a yield of 0.9% tacked onto whatever the inflation rate is. That fund's expense ratio is 0.2%, compared with an average 1.02% for similar bond funds, according to Vanguard.

Read the full article.