Is inflation giving you a scare?

We have been hearing a lot about the 'subprime meltdown', the recent action of the Fed, (lowering the prime rate 50 basis points), and the rising price of gasoline, bread and milk etc.
Actually, inflation is tame today, but its effects sneak up on you after a long period of time (like grey hair and extra pounds). The purchasing power of our dollars gradually erode with time.
It is important therefore to think hard before you buy something. Practice abstinence: when items are priced higher, you’ll be spending more, so try every excuse you can to avoid making impulse purchases. Or change your shopping habits so you buy at lower cost places.

A good strategy is to be debt free and when you need to shop, pay with cash. A better strategy is to use a credit card. But you must pay off your balance each month! This is most important because the rates that the card companies charge verge on usury. Also chose a card that gives good rewards.....like 1% to 5% cash back.

One last suggestion is to buy TIPs and I-Bonds, which are types of bonds that offer inflation protection. Some good points about these investments: even in the case of a deflationary environment, you still receive the face value of the bond while interest rates keep at zero or higher; these bonds do not correlate with typical asset classes like stocks and bonds, so they offer diversification; and they pay out more when inflation rises.
You can buy them directly from the government at:
treasurydirect.gov
(There is a limit of 30 thousand dollars a year)
And: there is no commission because you are buying them without a broker.