Inflation is now measuring at 1.55%
The Federal Reserve has completely screwed this up.
They must cut interest rates immediately. pic.twitter.com/6iHdDI0PAu
— Anthony Pompliano 🌪 (@APompliano) January 16, 2026
Inflation Set to Rise in 2026 as Tariff Costs Hit Consumers
Our outlook shows inflation ticking up to 2.7%, with GDP growth slowing.
But with businesses passing on more tariff costs to consumers, our US inflation forecast shows a rise to 2.7% in 2026. After that, weak gross domestic product growth should ease inflationary pressure.
But that pretariff inventory is running out, and many businesses are planning further price hikes in 2026.
Through the third quarter of 2025, year-to-date real GDP growth was 2.1% year over year, a deceleration from the 2.8% average over 2022-24. Government spending has slowed. So has private fixed investment, as spending related to artificial intelligence has been offset by weakness in housing, commercial real estate, and other areas.
The negative effects of tariffs on GDP growth have yet to play out much, as the impact on consumption won’t be fully seen until consumer prices rise further. Additionally, if US businesses absorb more tariff costs, it will hurt their profits and thus hamper investment.
https://www.morningstar.com/economy/inflation-set-rise-tariff-costs-hit-consumers-2026