After the 2022 inflation surge — the worst in 40 years at 9.1% peak — American consumers and investors have a fresh understanding of what inflation actually does to purchasing power. In 2026, with CPI running at 3-4%, the threat is lower but far from gone.
What $10,000 in a checking account loses to inflation
Inflation-protective assets available to Americans
| Asset | Inflation protection | Liquidity | Note |
|---|---|---|---|
| I Bonds (Treasury Direct) | Direct — rate adjusts with CPI | 1-year lockup | $10,000/year limit per person |
| TIPS (Treasury Inflation-Protected) | Principal adjusts with CPI | High (tradeable) | Available in ETF form (SCHP, TIP) |
| Real Estate (REITs) | Historically beats inflation | High (ETF) | VNQ, SCHH are popular choices |
| S&P 500 / Total Market | Historically beats inflation 10yr+ | High | Best long-term inflation hedge |
| Cash / checking account | Loses to inflation | Immediate | Keep minimal — only for float |
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About the author
Enrique 'Kike' Faúndez is an Information Systems and Management Control Engineer from Universidad de Chile, with master’s degrees in Finance from Universidad de Chile and Industrial Engineering from Pontificia Universidad Católica de Chile. He has 15+ years of experience in regulated financial services across finance, operations, and digital product development. He founded CashControlly in Santiago, Chile, with the conviction that personal financial control should not be a privilege, but an accessible and well-designed tool.
- Master's in Finance, Universidad de Chile
- Master's in Industrial Engineering, Pontificia Universidad Católica de Chile
- Information Systems and Management Control Engineer, Universidad de Chile
- AI and ITIL certifications
- 15+ years in regulated financial services
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