Inflation Set to Ease as Global Investors Predict Moderate Outlook

According to Unleash Prosperity's August 28, 2026, hotline update, inflation is expected to moderate in the months ahead. The current year-over-year inflation rate stands at approximately 3.5%, higher than desired by consumers and the Fed. However, four reliable lead indicators on prices suggest that inflation will range between 3% to 4% over the coming months.

The wild card remains the potential disruption of oil flows through the Straits of Hormuz. The TIPS spread, a market gauge for inflation expectations over the next five years, is currently at 2.35%, indicating a moderate inflation outlook. Global investors do not foresee a sharp rise in inflation in the near future.

The gold price has been volatile, dropping from an all-time high of $5,300 in January to its current level of $4,600. Despite this decline, the gold price remains anti-inflationary. Commodity prices have surged by 35% over the past year, which is concerning. The 10-Year Treasury Bill Yield has increased by 50 basis points to 4.7%, signaling a rise in borrowing costs.

Unleash Prosperity's bottom line assessment suggests that inflation will gradually decline over the next year to a range of 2.4% to 3.0%. While this is still too high, the risk of hyper-inflation is considered low.