Why Inflation Is Still High Despite What You've Heard
Some headlines might say inflation isn't as high as it once was, but your bills likely tell a different story. That gap between the economic data and lived experience isn't a misunderstanding. According to one wealth manager, it's exactly what this phase of inflation looks like.
Jim LaPinska, CEO of Axiom Wealth Management, a Northwestern Mutual Private Client Group, broke down why inflation hasn't really gone away and what people can actually do about it.
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The Numbers Look Better Than It Feels
Headline inflation has moderated from its peak, but LaPinska said the categories people feel most acutely — housing, insurance, healthcare and services — are still rising and tend to be the last to normalize after an inflationary period.
"What we're seeing today is a shift away from goods-driven inflation toward service-driven inflation," he said.
Services are stickier than goods because they're tied to labor, operating costs and long-term demand patterns. Once those costs rise, they rarely reverse quickly, regardless of what the broader inflation data shows.
Wage growth adds another layer. Strong wages are good for workers and the economy, but they create a secondary effect where businesses continue passing higher labor costs into pricing. Higher interest rates compound this further, raising the cost of borrowing across housing, construction and consumer lending simultaneously.
The result is a reality gap. Inflation may be slowing statistically, LaPinska said, but consumers are still absorbing the cumulative weight of several years of elevated prices.
How Inflation Shows Up
For the families LaPinska works with at Axiom, inflation often looks different than the grocery store conversation most people have. It shows up in rising property taxes, climbing insurance premiums, lifestyle inflation, and the increasing costs of maintaining assets and experiences over time.
"It's less about grocery prices and more about the infrastructure of a well-built financial life getting more expensive to maintain," he said.
That shift also influences investment decisions — particularly around liquidity, leverage and how portfolios are positioned for the long term.
What To Actually Do About It
LaPinska's framing for navigating inflation starts with a mindset shift — from reactive spending to intentional decision-making.
The baseline cost of living has changed, he said, and many households are still operating on assumptions that made sense several years ago but no longer reflect today's environment. Expenses that once felt manageable can quietly erode financial flexibility before people realize it's happening.
Strengthening emergency reserves and maintaining liquidity matter more during periods like this, especially when borrowing costs remain elevated. Reducing high-interest or variable-rate debt creates meaningful relief because those obligations compound quickly in a higher-rate environment.
But LaPinska was clear that the answer isn't simply cutting back. For many households, the path forward also involves increasing income, improving efficiency and making more deliberate decisions about spending priorities.
"For our clients, the conversation is typically less about restriction and more about optimization," he said. "We focus on cash flow discipline, tax efficiency, portfolio structure, and ensuring assets remain aligned with long-term purchasing power."
The Bigger Mistake People Make
LaPinska said one of the most common errors during uncertain inflationary periods is letting short-term headlines drive long-term financial strategy. Pulling back from investing or trying to time markets typically creates more damage than inflation itself.
"Inflation tends to reward discipline and punish reaction," he said.
Historically, long-term ownership of quality assets has been one of the most effective tools for preserving purchasing power — and that doesn't change because a given year feels economically unsettled.
His broader view is that inflation isn't simply a problem to solve and move past. It's a recurring reminder that wealth requires ongoing strategy, adaptation and precision. For growth-oriented families especially, that means coordinated planning across investments, tax strategy, cash flow and legacy planning, not isolated decisions made in response to whatever the headlines are saying this month.
This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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