Should We be Worried about Inflation?
September 22, 2026
Blog | Financial Growth | Life & Planning | Retirement | Tax Planning
“$6 for this?”
You’ve probably had a moment like that lately.
Maybe it was at the grocery store. Maybe it was when you filled up your car.
You see the price, do a double take, and wonder if you remembered it wrong. Did this really cost that much last time?
Then there are the packages themselves.
The box looks familiar, but somehow there’s less inside. The bag feels a little lighter. The container that used to last all week seems to run out a few days early.
Even if rising prices haven’t put much pressure on your own budget, you’ve probably heard the complaints from friends or family.
In other words, the cost of living has been a sore spot for many for a while. And the latest economic data suggests it’s not all in our heads.
Earlier this month, the government released its latest Consumer Price Index, or CPI, report.
Think of the CPI as a giant shopping basket. It tracks how prices change across many of the things Americans regularly spend money on, from groceries and gasoline to rent and medical care.1
Economists watch it closely because it gives us a snapshot of how quickly the cost of living is changing.
And the latest snapshot wasn’t particularly encouraging.
Prices rose 3.4% over the past year.2
For context, the Federal Reserve aims for inflation of around 2% over the long run.3 So 3.4% isn’t a number economists can easily shrug off.
It suggests inflation is still running uncomfortably hot, even after years of trying to bring it under control.
So, what’s pushing prices higher?
Energy is a big part of the story.
The war with Iran has thrown global energy markets for a loop. Disruptions in the Strait of Hormuz, along with attacks on energy infrastructure across the Middle East, have helped push oil above $100 a barrel.4
You’ve probably seen some of the effects at the gas pump.
But this isn’t just an energy story.
The U.S. economy has stayed strong, and the job market remains tight (driven less by hiring than by a shrinking pool of workers as retirements climb).5 That can keep wages and other business costs elevated.
Then there’s the AI boom.
Companies continue pouring money into data centers and other infrastructure. Building all of that requires workers and enormous amounts of electricity, adding more demand to an already-busy economy.6
Now here’s the thing…
There are good reasons to take all of this seriously.
Inflation doesn’t live in an economic report. People feel it when they fill up their cars or walk through the checkout line.
And the effects can reach their investments, too. Higher inflation can push interest rates higher, putting pressure on bond prices and creating another headwind for stocks.
So I wouldn’t dismiss what’s happening as just another scary headline.
The better question is what, if anything, it means for a financial plan.
I like to think about moments like this a little like a warning light on your car’s dashboard.
You don’t ignore it. You figure out what triggered it and whether anything needs your attention.
Sometimes new economic conditions can affect a financial plan. But whether they call for a change depends on the person behind the plan.
Has their retirement timeline changed? Do they need more income from their portfolio than expected?
Those are the kinds of questions that help determine whether a warning light actually calls for action.
And they’re also why planning should be done with difficult periods in mind.
Inflation can run hot. Markets can have uncomfortable stretches.
An intentional plan gives you a framework for navigating those moments and figuring out when something deserves a closer look.
Of course, making that call isn’t always easy.
That’s where a conversation can help.
Warmly,
Barry
P.S. Part of my job is helping make sense of the news we’re all hearing. It matters to me. If this raised a question or cleared one up, comment below and let me know.
Sources
You’ve probably had a moment like that lately.
Maybe it was at the grocery store. Maybe it was when you filled up your car.
You see the price, do a double take, and wonder if you remembered it wrong. Did this really cost that much last time?
Then there are the packages themselves.
The box looks familiar, but somehow there’s less inside. The bag feels a little lighter. The container that used to last all week seems to run out a few days early.
Even if rising prices haven’t put much pressure on your own budget, you’ve probably heard the complaints from friends or family.
In other words, the cost of living has been a sore spot for many for a while. And the latest economic data suggests it’s not all in our heads.
Earlier this month, the government released its latest Consumer Price Index, or CPI, report.
Think of the CPI as a giant shopping basket. It tracks how prices change across many of the things Americans regularly spend money on, from groceries and gasoline to rent and medical care.1
Economists watch it closely because it gives us a snapshot of how quickly the cost of living is changing.
And the latest snapshot wasn’t particularly encouraging.
Prices rose 3.4% over the past year.2
For context, the Federal Reserve aims for inflation of around 2% over the long run.3 So 3.4% isn’t a number economists can easily shrug off.
It suggests inflation is still running uncomfortably hot, even after years of trying to bring it under control.
So, what’s pushing prices higher?
Energy is a big part of the story.
The war with Iran has thrown global energy markets for a loop. Disruptions in the Strait of Hormuz, along with attacks on energy infrastructure across the Middle East, have helped push oil above $100 a barrel.4
You’ve probably seen some of the effects at the gas pump.
But this isn’t just an energy story.
The U.S. economy has stayed strong, and the job market remains tight (driven less by hiring than by a shrinking pool of workers as retirements climb).5 That can keep wages and other business costs elevated.
Then there’s the AI boom.
Companies continue pouring money into data centers and other infrastructure. Building all of that requires workers and enormous amounts of electricity, adding more demand to an already-busy economy.6
Now here’s the thing…
There are good reasons to take all of this seriously.
Inflation doesn’t live in an economic report. People feel it when they fill up their cars or walk through the checkout line.
And the effects can reach their investments, too. Higher inflation can push interest rates higher, putting pressure on bond prices and creating another headwind for stocks.
So I wouldn’t dismiss what’s happening as just another scary headline.
The better question is what, if anything, it means for a financial plan.
I like to think about moments like this a little like a warning light on your car’s dashboard.
You don’t ignore it. You figure out what triggered it and whether anything needs your attention.
Sometimes new economic conditions can affect a financial plan. But whether they call for a change depends on the person behind the plan.
Has their retirement timeline changed? Do they need more income from their portfolio than expected?
Those are the kinds of questions that help determine whether a warning light actually calls for action.
And they’re also why planning should be done with difficult periods in mind.
Inflation can run hot. Markets can have uncomfortable stretches.
An intentional plan gives you a framework for navigating those moments and figuring out when something deserves a closer look.
Of course, making that call isn’t always easy.
That’s where a conversation can help.
Warmly,
Barry
P.S. Part of my job is helping make sense of the news we’re all hearing. It matters to me. If this raised a question or cleared one up, comment below and let me know.
Sources
- The Bureau of Labor Statistics, 2026 [URL: https://www.bls.gov/cpi/questions-and-answers.htm]
- The Bureau of Labor Statistics, 2026 [URL: https://www.bls.gov/news.release/archives/cpi_09112026.htm]
- The Federal Reserve, 2025 [URL: https://www.federalreserve.gov/faqs/economy_14400.htm]
- BBC, 2026 [URL: https://www.bbc.com/news/articles/cyvznqypz0yo]
- RBC Economics, 2026 [URL: https://www.rbc.com/en/economics/us-week-ahead/labor-market-tightness-to-persist-despite-payroll-slowdown/]
- Yahoo, 2026 [URL: https://finance.yahoo.com/sectors/technology/articles/jerome-powell-says-blame-data-135528565.html]
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“Inflation is when you pay fifteen dollars for the ten-dollar haircut you used to get for five dollars when you had hair.”
– Sam Ewing