By Peter Reagan
In our culture, some people are trend setters and others are trend followers.
In the 1980s, for example, Don Johnson and the cast of Miami Vice helped make white slacks and pastel-colored blazers popular. Millions of people followed along, turning a television trend into a cultural phenomenon.
Unfortunately for me, I don’t have Miami Vice’s influence. I’m less of a trend maker and more of a trend spotter – at least when it comes to the economy.
And that’s important because recognizing economic trends early can give people time to prepare before those trends begin affecting their finances.
So let’s look at a few signals that deserve attention right now.
Ugly trends coming our way
Let’s start with one of the least popular developments in any economy: Inflation.
According to the U.S. Bureau of Labor Statistics, the Consumer Price Index (CPI) increased by 0.5% in May 2026 on a seasonally adjusted basis.
That may not sound dramatic at first glance, but inflation compounds over time. The BLS also reported that, before seasonal adjustment, the all-items index increased 4.2% over the previous 12 months.
Energy prices were a significant contributor. The energy index rose 3.9% in May after increasing 3.8% in April and 10.9% in March.
Reuters reported that May’s CPI reading represented the fastest annual inflation rate in three years.
While inflation remains below the peak levels experienced in 2022, it is still running well above the Federal Reserve’s long-term 2% target.
That’s worth paying attention to.
Inflation data tells us what has already happened. But if we want clues about what may happen next, it helps to look at how businesses are responding.
What businesses do
When businesses expect costs to rise, many try to purchase inventory before prices increase further.
By buying goods earlier, companies may be able to reduce future costs and protect themselves against potential supply disruptions.
Recent data suggests that many businesses are doing exactly that.
Reuters reported that U.S. wholesale inventories increased for a third consecutive month.
According to the report, some businesses have been building inventories to hedge against potential shortages and higher prices associated with geopolitical tensions, including the conflict involving Iran.
Of course, geopolitical risks are only one factor. Businesses also face uncertainty surrounding energy costs, transportation expenses, labor costs, and broader inflation pressures.
The logic is straightforward: if you believe prices may be higher tomorrow, buying today can make financial sense.
Consumers often behave similarly. During the early stages of the COVID-19 pandemic, many households stocked up on essentials because they feared shortages. Businesses frequently apply the same principle when managing inventory.
At the same time, business owners appear increasingly concerned about inflation. Reuters tells us that U.S. small-business sentiment declined significantly in May.
Perhaps more importantly, the survey found that a growing share of business owners expect to raise prices in the coming months.
That doesn’t guarantee inflation will accelerate further. But it does suggest that many business owners anticipate continued cost pressures ahead.
And when the people responsible for purchasing inventory, managing payrolls, and setting prices become more concerned about inflation, it’s worth taking notice.
So what now?
The reality is that inflation is not a future possibility – it’s already affecting households and businesses today.
Consumers see it at the grocery store, at the gas station, and in monthly bills. Businesses see it in their operating costs.
The recent rise in CPI, increasing wholesale inventories, and growing expectations for future price increases all point to the same conclusion: inflation remains a meaningful economic risk.
That doesn’t mean panic is warranted. Economic forecasts can be wrong, and no single indicator predicts the future with certainty.
However, it does mean that individuals should think carefully about how inflation could affect their savings, purchasing power, and long-term financial plans.
One approach many investors consider is diversification. Historically, some investors have used precious metals as part of a broader strategy to help hedge against inflation and currency-related risks.
If you’d like to learn more about precious metals and how they may fit into a diversified retirement or investment strategy, you can request our free 2026 Precious Metals Information Kit. Or, if you’re ready to speak with a Precious Metals Specialist right now, call (877) 749-7738.
As always, consider your personal financial goals, risk tolerance and investment objectives before making any investment decision.