Consumers continue to feel the effects of inflation on their budgets. In February, the Consumer Price Index, which tracks the cost of consumer goods and services, showed a 2.4% rise over the previous 12 months.
And according to one global policy organization, the U.S. war with Iran and its effects on energy prices, plus the ongoing impact of U.S. tariffs, may bump prices significantly higher for the rest of the year. In a March report, the Organization for Economic Cooperation and Development forecast all-items inflation of 4.2% for 2026.
It’s a marked uptick from the group’s previous projection of 2.8%, and well above Federal Reserve officials’ latest estimate of 2.7%. The OECD, a collaborative forum of 37 governments, is viewed by the U.S. government as a reliable source of policy analysis and economic data.
For investors, periods of high inflation are generally considered a problem. While your portfolio grows over time, inflation is stealthily growing alongside it, eating away at the value of your savings.
“The main thing we remind clients is that inflation quietly erodes purchasing power,” says Joon Um, a certified financial planner with financial firm Secure Tax & Accounting. When it comes to a few percentage points in the CPI, he says, “even small differences matter.”
