Your wallet isn't playing tricks on you: Things really are costing an arm and a leg lately. In June 2022, the U.S. inflation rate spiked to 9.1%, which was its highest level in more than 40 years. Even with some modest tapering since the summer, the U.S. inflation rate in December came in at a still-painful 6.5%.

To make matters worse, the inflation rate is soaring at a time when the stock market is struggling. All three major U.S. stock indexes turned in their worst performances since 2008 last year. This has some folks questioning their resolve to stick around. Unfortunately, holding a lot of cash with a high inflation rate simply isn't an attractive alternative.

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Source Fool.com