Investigating Inflation’s Ripple Effects on Catholic Stewardship in 2026

Sink or float? We tossed in the cotton ball into a bowl of water. What will happen? Sink or float? Next goes in the penny. Sink or float. The cotton ball will float. The penny & pop tab will sink. We make hypotheses. I tell my four-year-old that a hypothesis is an educated guess. That doesn’t mean we’re going be correct 100% of the time, but it means we're piecing together what we know about the world around us and history in order to hypothesize what could happen next.

As we look ahead to the coming year, I’ve been digging into how inflation could impact our country and hypothesizing myself. While officially reported at moderate levels, inflation might quietly reshape the financial landscape for our parishes, schools, and ministries. My goal in this blog isn’t to present a definitive forecast, but rather to explore a few hypotheses and ask the hard questions every steward should consider.

Reported Inflation vs. Everyday Reality

According to the U.S. Bureau of Labor Statistics, the annual inflation rate for calendar year 2025 averaged about 2.6%. That number is absolutely helpful for big-picture budgeting.

But when I swipe my card to pay for groceries, it sure feels bigger than that. I'm somewhat embarrassed to show you this photo I took of the generic, Walmart brand maple syrup that I purchased recently. $15.98!

 

I'm not sure one example is a perfect representation. But do you feel it in your grocery cart? The USDA tells us Food-at-home (grocery store) CPI was 2.2% higher in July 2025 than in July 2024; while a ConsumerAffairs analysis found an overall 5.3% year-over-year increase in grocery prices nationally as of mid-2025. State-level variances ran from Pennsylvania (+8.2%) down to Colorado (+2.9%) over the same period. Minnesota came in on their charts at 5.9%.

 

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A Stablecoin 101: Digital Dollars on Bond Backing

One of the more curious developments on the monetary frontier is the rise of stablecoins—digital tokens whose value is pegged 1-1 to the U.S. dollar. Organizations can issue their own stablecoins as long as each unit is fully backed by U.S. government bonds, predominantly short-term U.S. Treasury securities or cash equivalents. In theory, this helps finance our climbing federal debt limit by unlocking new sources of liquidity. The GENIUS Act, July 2025 US legislation, brought stablecoin more into the public eye. The Act now requires stablecoin issuers to maintain the aforementioned backing reserves and undergo regular audits. More on stablecoin becoming a pillar of U.S. debt in June 2025 article here.

Yet issuing new stablecoins is, in effect, printing money. And history shows that whenever more currency chases the same basket of goods, general price levels tend to rise. That raises the question: will this modern twist on “printing presses” rekindle inflationary pressures? 

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What It Means for Cash and CDs

If inflation drifts upward again, the real purchasing power of cash holdings could slip. A certificate of deposit paying 3–4% annual yield might look attractive on paper, but after accounting for a 3–4% rise in consumer prices, your purchasing power could remain flat or even decline.

Is that a reason to panic? Maybe not. But it demands a sober assessment of where an organization parks its reserves.

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Tangible Solutions: Anchoring Value in Real Assets

When cash erodes, tangible assets often retain or grow in value. Here are a few options:

• Gold and silver bullion
• Income-producing real estate
• Diversified equity portfolios

For most Catholic organizations, the most practical avenue tends to be the stock market. It combines liquidity, professional management, and historically outpaces inflation over the long haul.

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Partnering with the Catholic Foundation of Southern Minnesota

That’s where we come in. For more than 35 years, the Catholic Foundation of Southern Minnesota has guided parishes, schools, and nonprofits in stewarding their assets against inflationary headwinds.

• We currently hold over $45 million in agency funds that remain fully owned by you.
• You retain easy access—without withdrawal fees—whenever cash is needed.
• We only follow Catholic Responsible Investing principals (CRI) so your financial stewardship is aligned to Catholic social teaching transforming your resources into ethical impact and sustainable growth.
• We’re advised by Wilmington Trust, one of the top 10 largest American institutions by fiduciary assets and a subsidiary of M&T Bank, ensuring institutional rigor and stewardship. (And our Wilmington Financial Analyst was on the USCCB's committee when they created the latest iteration of CRI)
• Your investments stay local, strengthening our Southern Minnesota Catholic community.

If you’re curious how a modest shift from cash into a balanced equity strategy could preserve your organization’s purchasing power, let’s explore it together. Reach out to me today. ewilliams@catholicfsmn.org.