Inflation adjusted Value of US $ 1 since 1977

Following is an interesting piece of information that was obtained from Franklin Templeton, USA. The illustration is self explnatory.

Just for those who need some explanation: Investing to Combat Inflation :
Inflation, by definition, drives prices up and pushes the purchasing power of your saved money down. While not much attention has been paid to inflation since the early ’80s, recent fiscal concerns have many wondering how much inflation will impact our economy in the years ahead. Stocks, despite their recent travails, have done the best job of providing returns after inflation is taken into consideration.

The Bottom Line :
(1) Over time, inflation shrinks buying power.
(2) Historically, stocks have generated better total returns after inflation than bonds, gold and cash equivalents.
(3) It's important to remember that while stocks have historically outperformed other asset classes over the long term, they can fluctuate dramatically over the short term. Investors should be comfortable with fluctuation in the value of the investment.
(4) Speak to a financial advisor for help creating an investment plan with the goal of protecting purchasing power.