I know the inflation coming out of the government agency cannot be trusted because they pick and choose the categories.  I wouldn't say pretty high in USA.  It is not too far off comparing to the published rate.  I don't think anyone is able to tell you exactly how much.  Maybe 2-2.5%.  That is not pretty high comparing to the kind of inflation we see in Malaysia. 

Using gold to hedge inflation is just an old saying.  I don't think it ever works.  What is behind the scene is, in my opinion, demand and supply.  Can anyone enlighten me why gold is a good hedge against inflation?  Why not silver?  Why not diamond?