Weekly Market Commentary

September 16th, 2025

What’s Going On With Inflation—and Why Reading May Be More Important Than Ever

I often get asked, “What do you expect for inflation?” It’s a fair question, because prices have a way of sneaking into almost every financial conversation—whether we’re talking retirement income, the grocery bill, or the stock market.

Inflation: Where We Are Now

Inflation simply means prices are going up. Last week’s Consumer Price Index (CPI) report showed inflation ticked up slightly in August compared to July. Year-over-year, prices rose 2.9%. That’s better than the runaway numbers we saw a couple of years ago, but it’s still above the Federal Reserve’s long-term goal of 2%.

Month-to-month, prices rose 0.4% from July to August. That might sound small, but over time, those little bumps can erode purchasing power.

Where did we feel it most? The grocery store.

• Fresh fruits and veggies were up 1.6% in just one month, with tomatoes leading the way at +4.5%.
• Meat costs jumped 1%, and beef specifically climbed 2.7%.
• On the bright side, doughnuts, coffee cakes, and sweet rolls dropped 2.3%. Eggs held steady.

So if you’ve noticed your grocery bill creeping higher, you’re not imagining it.

Why Food Prices Are Rising

Tariffs grab headlines, but they’re only one factor. Food costs are also being pushed up by:

• Labor shortages in farming, trucking, and distribution
• Higher transportation costs
• Weather disruptions affecting crops and livestock

All of these ripple through to the checkout line.

What Consumers Expect

People aren’t expecting relief anytime soon. The University of Michigan’s Consumer Sentiment Index shows Americans still see inflation sticking around:

• Short-term (next 12 months): expectations remain at 4.8%
• Long-term (beyond a year): ticked up to 3.9% in September, from 3.7% the month before

That’s down from the highs we saw earlier this year, but it tells us inflation concerns aren’t going away overnight.

How Markets Are Responding

Interestingly, Wall Street isn’t rattled. Investors seem more focused on a cooling labor market, which they believe gives the Federal Reserve cover to cut interest rates soon. Markets are now betting on three rate cuts this year—more than they expected just a few weeks ago.

That optimism helped push major stock indexes higher last week. Bond markets were more mixed, with longer-term Treasury yields ending about where they started.

A Shift to a Different Kind of Scarcity: Attention

Let’s pivot for a moment. We live in an era of endless scrolling, viral videos, and “brainrot”—a slang term for low-quality, addictive online content that eats away at our focus. Nobel Prize winner Herbert Simon warned about this way back in the 1970s: with too much information comes a scarcity of attention.

And we’re seeing that play out.

In 2004, nearly 3 in 10 Americans spent time reading books, magazines, or listening to audiobooks for pleasure. By 2024, it was down to just 16%. That’s a big drop in one generation.

Part of the problem? Literacy levels are slipping:

• 28% of U.S. adults scored at the lowest literacy levels in 2023, up 10% from a decade earlier.
• Only 44% were at higher literacy levels, compared to 50% ten years ago.
• Out of 31 countries studied, the U.S. ranked 14th.

Why This Matters Financially
This isn’t just about whether people pick up a book. Reading skills tie directly to economic opportunity. A 2020 Gallup study estimated that if every U.S. adult reached at least a “Level 3” in literacy, the country would see $2.2 trillion more in annual income—about 10% of GDP.

In other words, strong reading skills don’t just enrich our minds, they enrich our economy.

Takeaways, so what does this all mean for you?

• Inflation isn’t gone. Prices are rising modestly, but steadily, and food in particular is feeling the squeeze. Building a financial plan that accounts for inflation—both now and in retirement—is key.
• Markets are hopeful. Investors expect the Fed to cut rates this year, which could support stocks but also shift bond dynamics.
• Your attention is valuable. In a world of information overload, what you choose to read (and focus on) matters. Staying informed with reliable, thoughtful insights—not just quick-scroll headlines—can give you a real advantage financially and personally.

And maybe, just maybe, reading more than your phone screen is a better long-term investment than we realize.

Weekly Focus – Think About It

“An investment in knowledge pays the best interest.”

– Benjamin Franklin