Housing, insurance, groceries, healthcare, and utilities are still far more expensive than they were a few years ago.
For investors looking to preserve purchasing power without taking excessive risk, ETFs like Schwab U.S. TIPS ETF (SCHP), iShares TIPS Bond ETF (TIP), and SPDR Bloomberg 1-3 Month T-Bill ETF (BIL) remain worth a look.
Kevin Hassett: "People are spending more on gas, but they're also spending more on everything else -- not just groceries, but restaurants and so on. I think that's a sign you see when people are optimistic about the future."