Inflation has been rough on us all.

Consumer prices for March jumped 8.5% year over year, which came in above expectations for 8.4%.  We haven’t seen numbers like that since December 1981.  Core inflation was at its highest points since August 1982.  

Core CPI – which excludes food and energy — was up 0.3%, which was just below expectations for 0.5%.  With that, the market believes inflation may be moderating, which is why markets were rallying in pre-market. However, that’s only a month over month figure.  

Year over year, core CPI is up 6.5% from last month’s year over year pace of 6.4%.  So, don’t get too excited about that 0.3% month over month figure.

Plus, according to Barron’s, “The jump in prices marks the seventh-straight monthly increase in the annual pace and the fastest inflation the U.S. has seen in more than 40 years. That pace will add to mounting pressure on the Federal Reserve to move faster to rein in spiraling inflation, potentially by raising interest rates by a half-point when central bank officials meet.”

Rising Inflation is a Major Concern

It’s a major concern, especially for retirement age investors.

According Global Atlantic Financial Group survey, investors ages 59 to 75 are concerned that inflation will wreak havoc on their investments, as noted by CNBC.  About 71% of those surveyed believe it will negatively impact them.

“Moreover, 46% of investors said they believe rising inflation and low interest rates will make it more difficult to have steady income in retirement. Of those invested in fixed income, 46% said they are concerned about low interest rates affecting their retirement income,” added CNBC.

So, what’s the best way to protect your portfolio from sky-high inflation?

Invest in high-yielding dividend stocks, like WP Carey (WPC), Costco Wholesale (COST), and Kinder Morgan (KMI) to name a few.