3 Reasons Inflation and Rising Prices Will Continue in 2025, According to Jaspreet Singh
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Gabrielle Olya
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Molly Sullivan
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Many Americans are hoping that a new year and a new presidency will finally mean an end to inflation, but money expert Jaspreet Singh does not believe that this will be the case.
“It’s 2025 and it doesn’t look like the inflation worries are going away anytime soon, even though that’s what everybody was telling us a few years ago,” he said in a recent YouTube video.
Here are the reasons Singh predicts that inflation and rising costs will still be an issue this year.
Government Spending Has Exacerbated Inflation and Will Likely Continue To Do So
Singh explained that there is a strong connection between government spending and inflation. This has been a problem in the past, and is likely to continue to be problematic in the future.
“If you keep spending money you don’t have, that could make an inflation problem like we’re seeing right now,” he said. “And what we saw in 2024 is that the United States government had the third largest national deficit in history. That means in 2024, the United States government spent a lot of money that they didn’t have.”
Although President Donald Trump has promised to cut down on government spending, it remains to be seen how much spending is actually reduced.
“It really doesn’t look like, despite all this news, that the government’s going to be cutting down spending anytime soon,” Singh said. “Let’s see what happens. But the concern is that maybe government spending is going to continue running in the deficit, which could create more inflationary concerns.”
The Federal Reserve May Make Fewer Rate Adjustments Than Anticipated
In the most recent Federal Reserve meeting this month, concerns were raised about the effect of Trump’s potential policies on inflation.
“The Federal Reserve cited recent stronger than expected readings on inflation and the likely effects of potential changes in trade and immigration policy,” Singh said. “Now, they didn’t explicitly mention the word ‘Trump,’ but what they’re saying is they’re concerned about trade changes, maybe potential tariffs and changes to immigration policy, maybe deporting millions of immigrants, and how those things could potentially create an impact on inflation.”
Because the Federal Reserve is bracing for inflationary policies to take effect, it may cut interest rates fewer times in 2025 than it had previously planned to.
Tariffs Could Make Things More Expensive
Trump’s proposed tariffs could impact the prices on many things we buy in the U.S., but Singh said instead of panicking, we should wait and see how this plays out.
“Some people are saying that these tariffs are going to make the inflationary problems much worse, and then we have other people that are saying that the tariffs are not going to make the inflation problems worse,” he said. “This is a lot of guessing right now, because nobody knows what they’re going to get passed. And without all this data, we have no idea of what’s actually going to be the impact of these tariffs.”
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