Inflation Is Back… Or Is It?

• Oil and gas prices have risen significantly in the last few months as a result of the war against Iran
• Consumer and producer price indices have risen as a result, and there are fears that inflation could rise even further
• Because of gold’s performance during periods of high inflation, it remains a sought-after safe haven asset and hedge to help protect against inflation

In 2022 the United States experienced the highest inflation rates in over 40 years, with annual inflation rates peaking at over 9% year on year. But while inflation rates fell after that, they’re starting to pick up once again.

The producer price index (PPI), which measures the prices paid by producers, has risen to 6.5% year on year, and the consumer price index (CPI), which measures prices paid by consumers, has risen to 4.2% year on year.

These are ominous signs that inflation could be picking up, but the question many people have is whether this is a trend that will continue, or whether this is just a temporary bump caused by rising oil prices in the aftermath of the attacks against Iran.

For many Americans, however, the question is largely irrelevant. The fact remains that prices today are significantly higher than they were before 2020.

From December 2019 to today, the overall CPI has risen 29%, while prices of ground beef are up 75%, eggs are up 43%, and milk is up 32%.

Everything got more expensive, and many Americans’ financial well-being did not. While the top 10% of wage earners may be doing just fine today, the other 90% feel like they’re falling behind.

Not only have they been falling behind over the past several years, they may end up falling behind even further if inflation is in fact picking up.

Why Inflation Rates Are Rising

One of the major effects of President Trump’s attack on Iran was an increase in oil prices as the Strait of Hormuz was largely closed to ship traffic. With so much oil that normally would transit that strait remaining cut off from world oil markets, oil and gasoline prices rose significantly.

Gasoline prices in the US rose over 50%, from an average of $3.07 in February 2026 to $4.65 in May 2026, while diesel prices rose roughly the same percentage, from $3.68 to $5.52 during the same time period. That has subsequently led to higher downstream prices, as the rising cost of goods transport has begun to be factored into the price of various consumer goods.

PPI has risen 3.4% from January 2026 to May 2026, an annualized rate of 10.6%. Meanwhile, CPI has risen 2.3% during that same period, an annualized rate of 6.9%.

If those rising producer prices end up getting passed on to consumers in the form of higher prices for finished goods, then CPI figures could end up rising far more in the coming months than many people anticipate right now.

No one knows how long the conflict with Iran will last, or what the fate of the Strait of Hormuz will end up being, as peace talks and ceasefires have faced numerous hurdles over the past several weeks.

If the Strait of Hormuz remains largely closed to tanker traffic, and if oil-producing countries aren’t able to ship that oil in some other manner, then oil prices could remain elevated for a long period of time, which could impact consumer prices.

There are a lot of “what ifs” that could impact things, which can make it difficult not only to forecast where inflation might go, but also how to respond to potential rising inflation. But since we just experienced high inflation a few short years ago, can it really be a bad idea to try to protect against high inflation once again?

The Policy Response to Inflation

New Federal Reserve Chairman Kevin Warsh recently attended his first Federal Open Market Committee meeting as chairman, and the difference between him and his predecessors has been marked. Aside from the brevity and terseness of the FOMC’s recent policy statement, the thing that most stood out was the emphasis on price stability.

That makes it appear that the Fed’s policy emphasis going forward will be to concentrate on fighting inflation, so that if consumer inflation rates continue to remain elevated, the Fed may very well start hiking interest rates once again.

According to CME’s Fedwatch, a majority of market watchers now believe that the Fed could raise interest rates as early as September, which would be an interesting turn of events. Certainly we can’t imagine President Trump being too happy if that were to occur, as he continually castigated former Chairman Powell for not lowering rates enough.

Of course, a lot could happen between now and September, whether that’s renewed attacks in the Strait of Hormuz, exhaustion of oil supplies, or any other number of potentially catastrophic events. But if inflation rates continue to pick up in the coming months, the odds of a Fed rate hike could rise even higher.

Help Defend Against Inflation With Gold

Many people have wondered how they can help protect themselves against rising inflation that continues to erode the purchasing power of their dollars. One way to do that is to put your dollars to use in purchasing assets that gain value at a greater rate than the dollar is being devalued.

Gold is one such asset, and it has been trusted as a safe haven asset and hedge against inflation for centuries. There’s a reason for that, as gold has a history of performing well even during periods of high inflation.

During the stagflation of the 1970s, when interest rates peaked at over 13%, the gold price rose at an annualized rate of over 30% per year over the course of the decade. And since January 2020 the gold price has risen 173%, versus 29% for CPI.

That ability to gain value during inflationary environments has made gold a sought-after safe haven asset, and that safe haven demand helped push gold prices to record highs in early 2026.

Now that gold prices have pulled back a bit from those highs, there’s an opportunity to buy gold before it takes off again. Many analysts believe that gold prices will continue to rise, with major banks such as Bank of America expecting gold to hit $6,000 an ounce within the next 12 months.

If you’re looking to buy gold, Goldco can help you. We have worked hard to make ourselves one of the best gold companies in the country. Whether you want to make a direct purchase of gold coins and gold bars, or use existing retirement savings to start a gold IRA, Goldco can help you navigate the gold purchase process.

We have helped thousands of customers benefit from owning gold, and with over 8,000 5-star reviews and over $3 billion in precious metals placements over more than a decade of service, our dedication to outstanding customer service and high quality gold and silver products is the gold standard to which our competitors can only aspire.

If you’re worried about the impact inflation could have on the value of your savings, don’t wait any longer. Call Goldco today to learn more about how you can help safeguard your savings with gold.