CPI Inflation Jumps, Eggs Prices up 15.2%. Gold Hits New Record Near $3,000

Space enthusiasts will recall astronaut Jack Swigert’s famous message to NASA after an oxygen tank explosion rocked Apollo 13 while traveling to the moon in 1970:

“Houston, we have a problem.”

The same can be said for the Federal Reserve in 2025—when inflation moved in the wrong direction—jumping 0.5% to 3.0% in January, its biggest gain since August 2023.

The Federal Reserve has an inflation problem that won’t go away.

And, while egg prices soared 15.2% last month, the inflation jump isn’t just from eggs. Price increases on shelter, gasoline, and food (including meats, dairy, and fish) and higher used car and truck prices contributed to a broad rise in American consumer goods prices. Prescription medication and car insurance also saw big price jumps last month.

What’s more, these consumer price increases were recorded before the impact of any of President Trump’s new tariffs took effect. That means, there could be more jumps in inflation in the months ahead.

Markets react.

Stocks slumped on the news. Gold climbed to another record high. The precious metal has marched steadily higher since the beginning of the year and is already logging an impressive 11.2% gain as gold approaches the $3,000 an-ounce level. Silver is up 13% since the start of the year.

The surprise 3.0% CPI reading has many on Wall Street rethinking interest rate cuts this year. Many say Federal Reserve rate cuts have now moved to the back burner.

Bottom line?

Inflationary pressures are bubbling hot. Tariff policy could worsen the outlook in the months ahead. Investors should brace for higher volatility in the equity markets and the inflation trend will keep a strong bid under the gold market.

Gold has a rock-solid track record as a store of wealth and is an enduring form of money recognized in every country on the planet. Before stocks tumble more, have you considered rebalancing your portfolio and increasing your allocation to gold? Once stocks start crashing, it will be too late to get your money back.

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