Expert: Here’s What Lies Ahead for Inflation and Affordability in 2026

Inflation whitethorn beryllium cooling, but Americans are inactive feeling the pinch — the December 2025 Consumer Price Index showed prices roseate 0.3% month-over-month and 2.7% year-over-year.

Niladri “Neel” Mukherjee, main concern serviceman astatine TIAA Wealth Management, warns that 2026 won’t bring large alleviation for consumers. Here’s what helium predicts for ostentation and affordability successful the twelvemonth up — and what it means for your wallet.

Mukherjee expects ostentation to stay precocious passim 2026.

“Inflation should stay elevated, fixed steadfast economical enactment and immoderate tariff pass-through to consumers,” helium stated successful TIAA Wealth Management’s End of Year Outlook.

This unit volition deed lower-income households hardest.

“Elevated prices of mundane goods, inferior costs, etc., are apt to accent the finances of lower-income consumers,” Mukherjee told GOBankingRates. “A challenging hiring situation could besides pb to this cohort of consumers becoming much cautious with their discretionary spending.”

However, early-year taxation refunds whitethorn supply impermanent relief, helium said.

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It’s not each atrocious quality for our wallets. Mukherjee anticipates much authorities involution aimed astatine affordability — particularly up of midterm elections.

“It is apt that tariff rates stabilize, and adjacent determination little implicit the people of the year, arsenic the Trump medication assumes a much targeted model for tariffs, focusing connected definite industries deemed captious for nationalist security,” helium said.

“If this happens, consumers whitethorn spot immoderate alleviation successful prices of imported goods.”

Another agleam spot for the coming twelvemonth is simply a much affordable lodging market. Mukherjee expects the Federal Reserve to chopped rates by 25 to 50 ground points, which could propulsion owe rates lower.

“Housing affordability whitethorn amended arsenic the Fed cuts rates and owe rates determination lower, giving a boost to refinancings and sales,” helium said.

While ostentation isn’t disappearing, strategical argumentation shifts and complaint cuts could connection pockets of relief. Staying informed — and sticking to a fund — volition beryllium cardinal to navigating 2026.

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This nonfiction primitively appeared connected GOBankingRates.com: Expert: Here’s What Lies Ahead for Inflation and Affordability successful 2026