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Consumers cautious as inflation ticks higher

  • In 2025, consumer prices increased 2.5% in February from a year earlier, matching January's pace, while core prices rose 2.8%, exceeding January's 2.7% increase and remaining above the Federal Reserve's 2% target, according to a Commerce Department report released on Friday.
  • Rising inflation and uncertainty surrounding newly proposed tariffs on goods produced outside of the United States, including steel, lumber, and computer chips, are causing consumers and businesses to become more cautious, with potential for significant economic harm.
  • Economist Kyle Anderson of IU Kelley School of Business advised consumers to tighten their belts and keep extra cash on hand, anticipating that many items will become significantly more expensive in a relatively short period, with fruits and vegetables specifically mentioned.
  • Gina Sanchez, Lido Advisors chief market strategist, stated that Dollar General stock could perform well as the economy weakens and consumers seek value, while also noting that the second half of the year will be particularly challenging for consumers.
  • Despite some longer-term catalysts, Sanchez also expressed concerns about Lululemon, whose shares have slumped 25% in 2025 after issuing weaker-than-expected full-year guidance, due to macroeconomic headwinds, inflation, and tariff concerns.
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St Louis Post-DispatchSt Louis Post-Dispatch
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Consumers cautious as inflation ticks higher

WASHINGTON — Inflation picked up last month and consumers barely raised their spending, signs that the economy was already cooling even before most tariffs were imposed.

·St. Louis, United States
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Wilmington News Journal broke the news in on Friday, March 28, 2025.
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