The US economy is feeling the heat as soaring inflation and steep tariffs are adding pressure on everyday consumers 💸. Recent data from the US Bureau of Labor Statistics shows the Consumer Price Index surged 2.8% year on year in February, while the core index climbed to 3.1%—well above the 2% target set by the US Federal Reserve.
This isn’t just about numbers. In January, consumer spending fell by 0.2%, marking the largest drop in nearly four years, and a Conference Board survey revealed a sharp 7-point drop in consumer confidence—from expectations of 102.3 down to 98.3 📉. These trends signal widespread caution as shoppers brace for more economic challenges.
Adding to the woes, tariffs on imported goods are driving up everyday costs even further. With inflation remaining high and economic growth slowing, experts warn that the risk of stagflation is real, especially after forecasts suggest a 1.5% GDP contraction in early 2025. Stay tuned for more updates on how these shifts might affect you!
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US tariffs hurt consumers, putting them under immense pressure
cgtn.com
