With the holidays here, you’re likely seeing prices go up while you shop. Inflation and tariffs have pushed costs higher this year, making everything feel more expensive.
David Bieri, an associate professor of public policy and economics, said the price increases are already baked into inventories.
Tariffs and inflation over the past year are some of the biggest reasons that prices have increased across nearly all industries. But as the holiday shopping season begins, consumers may need to keep a closer eye on what they are buying.
“As you said correctly, it’s both inflation and tariffs,” Bieri said. “Tariffs have added additional price pressure in the wrong direction from a consumer’s perspective.”
Alydia Bevins, a mother and New River Valley resident, said rising costs are affecting her family.
“It definitely makes you think a little bit more about,” she said. “I spend money on formula, diapers and stuff like that with a baby. Within the last year that’s already put kind of a damper on my spending money.”
The combination of tariffs and inflation is hitting consumers at the wrong time, with some metrics indicating that consumer sentiment is at its lowest point in a decade.
“Even like how things are going up,” Kevin Adkins said. “Like prices are going up, but the quality of stuff is going down. Stuff isn’t really meant to last anymore.”
Bieri said it’s important to remember how much the U.S. economy depends on household spending.
“It’s important to put it into context here that the American consumer is a key engine of our economy,” he said. “About two-thirds of U.S. GDP are generated by us consuming and buying stuff.”
Not only are customers bearing the weight of price hikes, but they might also be hit with unexpected costs.
“There have been a number of instances where if you import something, say it’s being shipped from China, your importer will pass that fee on to you,” Bieri said. “And you might be stuck with an unexpected fee of anywhere between $80 to $200.”
While these factors are forcing Americans to cut back on spending or save more, Bieri said there is still hope.
“I believe in the ingenuity of American households,” he said. “As I said, it’s the engine of what makes this still the most powerful, and resilient, and healthy economy on the planet. And that the tariff Grinch isn’t going to spoil Christmas for us this year.”