Will Inflation Ever Stop Anytime Soon?

Inflation has been a big issue over the last couple of years. Shortly after COVID in 2020, and that’s definitely reasonable to see why. So, will inflation ever stop anytime soon?

It’s going to be around for a while, as inflation went up again most recently.

As the cost of living goes up, the government spends more money, and the Federal Reserve prints more money into the market, that drives inflation.

I see inflation going up even more, if anything. That’s what I want to discuss in today’s letter.

Will Inflation Ever Stop Anytime Soon?

It’s impossible for inflation to stop all of the sudden. It’ll always exist, but how much it goes up (or goes down) all depends on the economic outlook, geopolitical events, and so forth. There will always be peaks and lows for inflation- This time, it’s no different.

Skepticism About Official Numbers

Not too long ago (April 2026), inflation rose up significantly by about 0.5% points.

According to the US Bureau of Labor Statistics, inflation went up from 3.3 -3.8%.

Now that’s an increase and less than 4% may not seem like much, but quite significant.

As skeptical as I am, I don’t take government numbers seriously. I think it’s hogwash and all fantasy to a degree because they’re the unofficial numbers.

I believe that inflation is much higher than that.

It’s probably in the 16–18% rate, or definitely in double digits.

But since that’s how the government works and manipulate numbers, they make it look like it’s not as bad as it is.

Market Impact and Federal Reserve Response

With this increase in inflation — and people saying it’s due to a rise in gas prices and recent geopolitical tensions, they’re more cautious about their spending and where they want to allocate it.

The market reacted negatively because it means the likelihood of interest rate cuts doesn’t seem to be on the table.

If inflation goes up a lot, then that doesn’t give the Fed valid reason to want to cut rates.

Instead, what they should do is raise rates, which the market does not want.

If the Fed were to raise rates, then that might help bring inflation down a little bit.

Future Outlook

The Federal Reserve can’t do much.

It’ll be interesting to see how much or how little impact it’ll have, but it definitely is something to take note because inflation may go higher soon.

I have my own beliefs that we’ll see inflation spike up for quite some time.

Some people are saying it could go up to 6% by the middle of 2026, which is possible.

It’s not too far from the 9% peak we had in 2022, but who knows — It could keep going up, it could go back down, and that’s how the cycle works.

And who knows? With a new chairman of the Federal Reserve in place, it’ll be interesting to watch how it unfolds.

Trading Opportunities

How does this affect investors and traders? It definitely brings volatility and opportunity in the markets.

When you have volatility, especially in the energy sector or even other sectors as well, those present opportunities.

As much as I’m concerned about the inflation rate and affects a lot o f people, I also know I’m not concerned that much either way.

• If inflation goes up and the market reacts negatively, I’ll still make money.
• If inflation goes down and the market reacts positively, I’ll still make money.

From a trader’s perspective, you cannot solely rely on looking at the long-term predictions.

Or, what the long-term prospects could be because that’s being in speculation mode.

Anything could easily change in a matter of weeks or months. It’s why I always focus on what’s happening this week instead of 6–12 months out.

As an options trader, I can make money in either direction, and that’s the beauty of the strategy I trade.

As much as I have my concerns with inflation, I’m still going to make money and profit from the greatest opportunities in the market right now.

Whether the market may be going in a downward trend, or possibilities of a recession, or even if the market bounces back and goes up, you still benefit either way.

That’s what I like about trading options — You can do well in any type of market direction.

For those who are struggling to get by, if they’re struggling with their living expenses and paying their bills, it’s a lot.

If they don’t have an additional source of income, then it gets much harder to deal with their finances.

What You Can Do Now

Options trading is what I discuss in my latest eBook, *Pennyful Vs. Cash Flow*, where it’s laid out as another alternative to traditional savings.

There are other ways you can do it, but options trading is one of my favorite ones to do.

If you’d like to grab your free copy today, grab it here to get on my email list.

I look forward to seeing you over there, with other bonuses coming your way.

Until next time,

-Eric

Photo by Joachim Schnürle on Unsplash