The annual inflation rate based on the most recent government report is now at 8.5%, the highest in 41 years. Inflation is when prices rise relative to supply and amount of currency in circulation.  There is serval cause of inflation but ALL causes boil down to one thing: supply and demand. There are many types of inflation however there is specific type we are currently experiencing. What do you need to know about this type and what can you do to protect your hard-earned dollars and your savings?