Inflation Remains High, But Economy Growing, Market Focuses on Other Indicators

Credit card debt over $1.2 trillion, higher-income Americans falling behind on payments

Published on Feb. 18, 2026

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The latest inflation numbers show the Consumer Price Index (CPI) coming in at 2.4% annually and the core inflation rate, which excludes food and energy prices, still elevated at 3.6%. The producer price index (PPI) is also a concern, coming in at 6%. While the economy is growing at almost 5% due to President Trump's policies, concerns remain over tariffs and government spending. The market is not overly focused on the inflation report, instead looking at other indicators like earnings and the impact of AI on the economy.

Why it matters

Inflation remains a concern for the average American, with credit card debt now over $1.2 trillion and higher-income Americans starting to fall behind on payments. This could signal a potential ticking time bomb, as the economy continues to grow but inflationary pressures persist.

The details

The latest inflation numbers show the Consumer Price Index (CPI) coming in at 2.4% annually, which may seem like inflation is under control. However, the core inflation rate, which excludes food and energy prices, is still elevated at 3.6%. The producer price index (PPI) is also a concern, coming in at 6%. The economy is growing at almost 5% due to President Trump's policies, including the rescinding of the Obama-era Endangerment Finding, which was a major contributor to inflation. But concerns remain over tariffs and government spending. The market is not overly focused on the inflation report, instead looking at other indicators like earnings and the impact of AI on the economy.

  • The latest inflation numbers were released on February 17, 2026.

The players

Tony Katz

The host of the Tony Katz Today show on WIBC 93.1 FM.

Dr. Matt Will

An economist from the University of Indianapolis who joined Tony Katz to discuss the latest inflation numbers and their impact on the economy.

President Trump

The former president whose policies, including the rescinding of the Obama-era Endangerment Finding, are credited with contributing to the current economic growth.

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What they’re saying

“I refuse to accept three point six percent inflation. It's still too high.”

— Tony Katz, Host, Tony Katz Today (WIBC 93.1 FM)

“Good Trump is growing the economy, but we still have to deal with the tariffs and government spending.”

— Tony Katz, Host, Tony Katz Today (WIBC 93.1 FM)

“The market's not paying a lot of attention to this report, because it didn't move the needle.”

— Tony Katz, Host, Tony Katz Today (WIBC 93.1 FM)

“This is not a ticking time bomb, but it's a problem.”

— Dr. Matt Will, Economist, University of Indianapolis (WIBC 93.1 FM)

“This is a fantastic move, but we still have to deal with the tariffs and government spending.”

— Tony Katz, Host, Tony Katz Today (WIBC 93.1 FM)

What’s next

The market will continue to monitor other economic indicators, such as earnings and the impact of AI, to gauge the overall health of the economy.

The takeaway

While the economy is growing, inflationary pressures and rising credit card debt remain a concern for the average American. Patience and caution are needed as the complex economic landscape continues to evolve.