CPI Surges in August 2025
The August 2025 CPI surged 2.9%, confirming our predictions of rising inflation. Discover why we called it and how to protect your wealth with energy, gold, and silver investments.
9/11/20253 min read
We Predicted Rising Inflation – Here’s How to Keep Up
Inflation Is Heating Up Again
The latest Consumer Price Index (CPI) data released on today, September 11, 2025, confirms what we’ve been warning about for months: inflation is on the rise. The CPI climbed 0.4% month-over-month in August, marking the largest monthly increase since January 2025, with a year-over-year inflation rate of 2.9%. Core CPI, excluding volatile food and energy prices, rose 0.3% monthly and 3.1% annually. These numbers signal that inflationary pressures are not only persistent but intensifying.
At LegacyHaven Advisors, we’ve been ahead of the curve, consistently highlighting the potential for rising inflation in 2025. Our predictions have proven accurate, and today’s CPI report underscores the urgency of protecting your financial future. In this post, we’ll revisit our earlier calls on inflation, spotlight the inflation hedges we recommended, and provide actionable insights to safeguard your wealth.
Inflation Is Climbing
Months ago, we warned that inflation was poised to accelerate due to persistent supply chain constraints, rising energy costs, and increasing consumer demand. The August 2025 CPI data validates our analysis, with a 2.9% year-over-year increase and a significant 0.4% monthly jump. This uptick reflects broader economic trends, including higher energy prices and labor market pressures, which we identified as key drivers.
Our foresight wasn’t just a lucky guess, it was grounded in data-driven analysis of global economic indicators. By staying ahead of the curve, we’ve helped our readers prepare for the financial challenges posed by rising inflation. Now, as the CPI confirms our predictions, it’s time to double down on strategies to protect your purchasing power.
Why Inflation Matters to You
Inflation erodes the value of your money, making everyday goods and services more expensive. A 2.9% annual CPI increase may seem modest, but it compounds over time, diminishing your savings and investments. For example, at this rate, $10,000 today could have the purchasing power of just $7,100 in a decade. For investors, retirees, and savers, this is a wake-up call to act now.
Our Recommended Inflation Hedges: Energy, Gold, and Silver
To combat inflation, we’ve consistently advocated for strategic investments in assets that historically perform well during inflationary periods. Let’s revisit the three inflation hedges we highlighted and why they remain critical in today’s environment.
1. Energy: Powering Through Inflation
Energy prices are a key driver of inflation, as seen in the recent CPI spike. We’ve long emphasized the potential of energy sector investments such as oil, natural gas, and renewable energy stocks as a hedge against rising costs. The August 2025 CPI data reflects higher energy prices, which continue to push inflation upward. By investing in energy ETFs or companies with strong fundamentals, you can position yourself to benefit from this trend while offsetting inflation’s impact.
2. Gold: The Timeless Safe Haven
Gold has been a go-to inflation hedge for centuries, and for good reason. Its value tends to rise when fiat currencies lose purchasing power. We alerted Gold in July when we called for rising inflation, and since then gold has inflated in value by over 8%, and with inflation now at 2.9%, gold’s appeal is stronger than ever. Whether through physical gold, gold ETFs, or mining stocks, adding this precious metal to your portfolio can provide stability in turbulent times.
3. Silver: The Undervalued Opportunity
Silver, often overshadowed by gold, is another powerful inflation hedge. Its industrial applications and lower price point make it an attractive option for investors seeking diversification. We’ve highlighted silver’s potential to outperform during inflationary cycles, and the current economic climate supports this view. Consider silver ETFs or physical silver to capitalize on this inflation hedge.
How to Act on Rising Inflation
The August 2025 CPI report is a clear signal: inflation is on the rise. Here are actionable steps to protect your wealth:
Diversify with Inflation Hedges: Allocate a portion of your portfolio to energy, gold, and silver to mitigate inflation’s impact.
Reassess Fixed-Income Investments: Annuities provide interest rates greater then the inflation rate which allows for that asset to grow conservatively and not be crushed by inflation. Consider inflation-protected securities like TIPS (Treasury Inflation-Protected Securities).
Stay Informed: You don't need to be an economist, but keep up to date with current trends of inflation.
Consult a Financial Advisor: Tailor your portfolio to your risk tolerance and financial goals with professional guidance.
Don’t Wait to Protect Your Wealth
The August 2025 CPI increase of 2.9% year-over-year confirms what we’ve been saying all along: inflation is a growing threat to your financial security. By diversifying into energy, gold, and silver you can shield your wealth from the eroding effects of rising prices, and actually benefit. Stay proactive, stay informed, and follow your plan.