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‘New economic reality’: NC consumers face tariff-driven inflation

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‘New economic reality’: NC consumers face tariff-driven inflation


Rising inflation is starting to show up on North Carolina grocery receipts and in the state’s factories, economists and executives say.

Inflation rose last month to its highest level since February as President Donald Trump’s sweeping tariffs push up the cost of everything from groceries and clothes to furniture and appliances.

Consumer prices rose 2.7% in June from a year earlier, the Labor Department said Tuesday, up from an annual increase of 2.4% in May. On a monthly basis, prices climbed 0.3% from May to June, after rising just 0.1% the previous month.

The Consumer Price Index tracks the year-over-year changes in the cost of goods and services such as groceries, clothing and medical expenses.

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The CPI shows grocery prices are up about 17.2% since January 2022. It means a $100 grocery bill back then would cost about $117 today.

John Coleman, professor at the Duke University Fuqua School of Business, said the trend of higher costs is not going away.

“If you had to make some cutbacks or some adjustments in terms of what you had to buy, what you wanted to buy, you’re going to have to continue to do that for quite some time,” Coleman said. “It’s unfortunate, but that’s just the new economic reality that we’re faced with.”

In the same timeframe, clothing has also gone up about 5.5%.

Medical costs have also increased, government data shows. Physician services are up 4.9%, for instance.

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Also, it’s 6.5% more for vehicles since January 2022.

There are many factors contributing to rising costs, including consumer spending habits, supply and demand and, increasingly, tariffs passed along to consumers.

“You are starting to see scattered bits of the tariff inflation regime filter in,” said Eric Winograd, chief economist at asset management firm AllianceBernstein, who added that the cost of long-lasting goods rose last month, compared with a year ago, for the first time in about three years.

Winograd also noted that housing costs, a big inflation driver since the pandemic, have continued to cool, actually holding down broader inflation. The cost of rent rose 3.8% in June compared with a year ago, the smallest yearly increase since late 2021.

The cost of gasoline rose 1% just from May to June, while grocery prices increased 0.3%.

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“About three-fourths of firms locally, in the New York area, were intending to pass some of the tariff-related costs onto consumers,” said Keenan Institute of Private Enterprise research economist Sarah Dickerson.

Retailers such as Target, Walmart and Home Depot have said they’ll pass the cost of tariffs onto their shoppers.

Trump has said the goal of the tariffs is to increase American-made manufacturing, but it will take time.

Some items got cheaper last month, including new and used cars, hotel rooms, and airfares. Travel prices have generally declined in recent months as fewer international tourists visit the U.S.

Tariffs already having an effect on NC’s economy

Daimler Truck told state officials last week that the company could temporarily lay off 573 workers at a plant near Charlotte because orders for its trucks are down. The company makes vehicles that companies like UPS use to deliver goods.

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Daimler Truck executives said last week that its customers are buying fewer trucks because of uncertainty over economic policy, including tariffs.

The Trump administration has been talking about tariffs for months now. But many of them have been delayed. So far, tariffs don’t seem to have had much impact on the state’s economy.

Daimler’s layoffs could be an indicator that that’s about to change, North Carolina economist Mike Walden said.

“Whenever there’s economic uncertainty, that is not good for business,” said Walden, an N.C. State University professor emeritus.

So far, many businesses have been trying to absorb the costs of tariffs. However, the latest uptick in the inflation rate means some are beginning to pass along those costs to consumers, Walden said.

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“Businesses have been trying to not do that, but they have a breaking point,” he said. “I think we’re beginning to see that breaking point.”

It also means companies may decide not to invest in business infrastructure like delivery trucks.

UNC Charlotte economist John Connaughton says a lot of the goods on our roads come from China, either directly or shipped through other countries such as Vietnam and Mexico. He said tariffs are starting to slow the flow of those products.

“One thing’s for absolute certain, and that’s going to be there’s going to be a dramatic shift in the amount of trade that we do with China, and that has been driving to a great extent the trucking industry over the past decade or two,” Connaughton told WRAL in an interview.

Coleman, the Duke professor, said demand for durable goods such as trucks is already down, and the continuing uncertainty about even more tariffs isn’t helping.

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“These are things that lead people to have a wait-and-see attitude,” Coleman said. “And the wait-and-see attitude is going to affect people like Daimler in trying to sell trucks. And then it goes down from there. I mean, it’s not just trucks.”

The economists that WRAL News spoke with on Tuesday agreed that North Carolina is likely to weather the economic uncertainty better than a lot of other states because the state is not overly reliant on manufacturing, which is where tariffs are hitting the hardest, and because the state’s economy and labor market continue to be very strong.

The Associated Press contributed to this story.



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Virginia signee Hamrick leads Shelby Crest to its 7th North Carolina high school football title by beating Hunt

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Virginia signee Hamrick leads Shelby Crest to its 7th North Carolina high school football title by beating Hunt


Wilson J.B. Hunt and Shelby Crest will battle for the Class 5A North Carolina High School Athletic Association title at 8 p.m. at Durham County Memorial Stadium in Durham. 

Both teams enter with 12-2 records in this contest. 

Crest has won 6 state titles, the most recent came in 2015 in Class 3AA. 

The Crest Chargers have won five in a row since a 21-14 loss to Ashbrook on Oct. 24. During the playoff run, the Chargers have knocked off Concord, 69-6; East Lincoln, 31-14; South Point, 28-14 and Hickory, 39-21.

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East Lincoln and Hickory were both ranked ahead of the Chargers in the state.

The Hunt Warriors carry a 6-game winning streak into the finals. One of the two losses came against fellow finalist Tarboro, which is in the 2A finals. 

The postseason run has included a pair of close wins for the Warriors, 30-28 against Eastern Alamance in the first round and then 32-29 over Croatan in the quarterfinals. Last week, Hunt beat Northside-Jacksonville, 20-7, to punch the ticket to the finals.

According to MaxPreps, dating back to 2004, these teams have not played. 

Crest

QB Ely Hamrick, sr. — 2,686 yards passing and 29 TDs; 706 yards rushing and 17 TDs; signed with Virginia; once played at IMG Academy

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RB Malachi Gamble, jr. — 501 yards rushing and 9 TDs

WR Michael Edwards, sr. — 48 catches for 801 yards and 8 TDs; 24 carries for 248 yards and 10 TDs 

WR Namjay Thompson, jr. — Has 47 catches for 804 yards and 13 TDs

LB Chris Gunter, sr. — Leads team with 81 tackles; has 10 TFL 

S D’Various Surratt, sr. — Team-high 4 interceptions; signed with North Carolina State 

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S Lyrick Pettis, sr. — 3 interceptions; Duke signee 

Hunt

LB Judah Harris, jr. — 184 tackles, 49 TFL, 6 sacks, 56 QB hurries, 2 FF, 2 FR

DT CJ Dickerson, jr. — 174 tackles, 46 TFL, 15 sacks, 40 QB hurries

WR/CB Isaiah Chadwick, sr. — 6 interceptions; 23 catches, 361 yards, 2 TDs

WR/CB Jamauris Howard, sr. — 16 catches for 307 yards, 3 TDs; 8 interceptions 

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LB Trevorous Cooper, fr. — 127 tackles, 2 sacks, 2 FR

QB Mez Harris, jr. — 1,435 yards passing and 8 TDs; 122 carries for 1,271 yards and 16 TDs rushing

RB Doryan Jones, so. — 243 carries for 1,754 yards and 21 TDS

Tell us who you think will win the game with High School On SI’s Pick ‘Em Challenge

Watch on NFHS

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1st

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2nd

3rd

4th

Hunt

7

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7

0

0

14

Crest

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7

17

7

0

31

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Hunt gets the all first

Nehemiah Rayquan Parker nearly gets a pick for Crest. Bobbled it twice but it fell to the ground

Crest gets the ball

Hamrick to Edwards for a first down and the ball is near midfield

Big play! Cooper with a blocked punt with 8:02 left. The Warriors will have good field position

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Jones with a first-down run. Ball at the 30-yard line; Pettis is hurt on the play

Jones with another big run off tackle. This time, going to the right; Ball at the 5-yard line

Jones with another carry and taken down at the 2 The ball pops out but he is ruled down by contact

TOUCHDOWN! Harris with a 2-yard run at 5:42. PAT is good. Hunt 7, Crest 0

Crest has to punt again. Hunt ball with 4:46 left but ball at the Crest 43-yard line

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TURNVOER! Hunt goes deep and Javion Hopper hauls it in. Ball at the 5-yard line. 4:32 left

Ball at the 1-yard line after a TFL

Hamrick to Thompson for a 49-yard completion 2:58 left

Big play! Jason Black runs down to the 3-yard line but a horse collar tackle will make it closer. Crest ball at the 2

Flags on the play

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Offsides on Crest

1st and goal at the 7

TOUCHDOWN! Edwards with TD no. 11 on the season. Hamrick ran ahead of Edwards toward the goal line. 1:29 left. Crest 7, Hunt 7

4th and 1 at the 35 now for Crest; Hunt jumped off sides to make it a little bit shorter

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TOUCHDOWN! Edwards with 35-yard run and Hamrick is one of the lead blockers. Crest 14, Hunt 7, 9:17 left in 2nd

Hunt punts; Crest taking over with 5:57 left

TV timeout

Black with a 9-yard run on the first play for the Chargers

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Hamrick keeps it and runs for a first down. Ball into Hunt territory; 6-foot-5 TE Romeo Sanders with a big block for the Chargers

Hunt calls a timeout with 3:52 left. Chargers are driving

Edwards in a QB in a Wildcat formation and gets down to the 5 but flags on the play

Holding on Chargers will move the ball back

On a draw, Jason Black runs up the middle and the ball is at the 6.

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TOUCHDOWN! Hamrick on a tush-push play. 2:06 left. Crest 20, Hunt 7

Offsides on Hunt; offense coming out for 2 points now

A lineman jumps offsides and Crest is sending kicking unit out for the second time

PAT is good. Crest 21, Hunt 7

Television replay just saw the flag thrown on Crest prior to the game; don’t see that often

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TOUCHDOWN! Harris tries to pass; finds no one and goes through a entire Crest defense for an 80-yard score. 1:42 left. Crest 21, Hunt 14

Crest calls timeout with 18 seconds left

Hamrick to Surratt — usually a defensive player — for a big gain. Ball at 10

Another timeout with 8 seconds left

incomplete pass; 4 seconds left

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FIELD GOAL Carson Grier with a 27-yard FG. 0:00; Crest 24, Hunt 14

Crest gets the ball first

Hamrick to Brock Melton for a first down. WR got an extra 7 yards after initial tackle

Unsporstmanlike call against Crest; guessing for Melton’s celebration after catch, but no mic on ref that time to know who call was against and I can’t read lips that well

TOUCHDOWN! Hamrick with another TD run from the 24. 9:56 left Crest 31, Hunt 14

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Jones gets the ball near midfield with a long run. He’s up to nearly 100 yards on the night. Ball is at the 48

Harris drops back and finds nothing. He runs for a first down and the ball is at the 32

Bad snap — high — turns into a TFL for Christian Stowe. 4th down coming up for Hunt with 5:37 left and rolling

TURNOVER! 38-yard FG goes wide right; 5:10 left

Crest ball coming out of Media timeout

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Hamrick and Black with back-to-back first down runs. Ball at a midfield for the Chargers

Cooper is hurt for Hunt with 2:03 left. He looks to be favoring a shoulder injury

TURNVOER! Harris with an interception with 7 seconds left in third quarter

Incomplete pass; Hunt still doesn’t have any passing yards; Incomplete pass celebration gets a flag on Crest. 1 second left in the 3rd

Hunt calls a timeout with 11:53 left

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Hunt punts the ball again; Crest ball with 10:45 left

Big play from Hamrick to Edwards and the ball is at the 13-yard line now.

Crest facing a 4th and 31

TOUCHDOWN! Hamrick to Thompson for a TD at 4:16.

Thompson did a backflip after TD and a flag followed, so … connect the dot

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Unsportsmanlike call on Crest; so touchdown is off the board

TURNOVER! Harris fumbles and Gunter recovers with 3:22





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Expectations for North Carolina Against USC Upstate

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Expectations for North Carolina Against USC Upstate


Sunday’s matchup will be a step down in competition, as the North Carolina Tar Heels’ recent schedule has featured Michigan State, Kentucky, and Georgetown in the last four weeks. With all due respect to the USC Upstate Spartans, they are not in the same class as any of the three teams mentioned above.

North Carolina’s coaching staff and personnel should not view this game as a pointless outing, as the Tar Heels can utilize this matchup to continue developing key features that will serve them well down the road.

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With that being said, here are a couple of expectations for North Carolina in a home matchup against USC Upstate.

Caleb Wilson and Henri Veesaar Should Continue Dominance

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Dec 7, 2025; Chapel Hill, North Carolina, USA; North Carolina Tar Heels forward Caleb Wilson (8) with the ball as Georgetown Hoyas forward Isaiah Abraham (7) defends in the second half at Dean E. Smith Center. Mandatory Credit: Bob Donnan-Imagn Images | Bob Donnan-Imagn Images

The Tar Heels’ frontcourt, consisting of Veesaar and Wilson, has been the team’s driving force on both ends of the floor. That trend should continue on Saturday against USC Upstate, as the Spartans are an undersized team, with their tallest player at 6-foot-9.

This season, Wilson is averaging 19.3 points, 10.6 rebounds, 2.4 assists, 1.6 steals, and 1.2 blocks per game, while shooting 53.2 percent from the field. Meanwhile, Veesaar is averaging 16.2 points, 9.2 rebounds, and 1.6 blocks per game, while shooting 63.6 percent from the field.

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Both players could total career highs in points and rebounds in this game, which could easily translate to 20+ in each category.

Another Steppingstone for the Backcourt

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Dec 7, 2025; Chapel Hill, North Carolina, USA; North Carolina Tar Heels guard Kyan Evans (0) passes the ball to forward Caleb Wilson (8) as Georgetown Hoyas forward Isaiah Abraham (7) defends in the second half at Dean E. Smith Center. Mandatory Credit: Bob Donnan-Imagn Images | Bob Donnan-Imagn Images

North Carolina’s backcourt produced a complete group effort against Georgetown on Sunday, with Kyan Evans and Derek Dixon having standout performances. Evans totaled seven points and four assists, which all occurred in the opening minutes, but it set the tone for the Tar Heels. Dixon scored 14 points, while shooting 5-of-7 from the field, including 3-of-5 from three-point range.

Head coach Hubert Davis highlighted both players’ performances against the Hoyas during his postgame press conference.

  • “I thought the start that [Kyan Evans] had was huge for us,” Davis said. “I mean, it’s not just the shots that he made. He was confident, he was aggressive, he was on point. It’s been five out of eight games where he’s gotten into foul trouble, so we’ve [got to] find a way to keep him out there on the floor.”

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Dec 7, 2025; Chapel Hill, North Carolina, USA; North Carolina Tar Heels head coach Hubert Davis talks with guard Kyan Evans (0) and guard Derek Dixon (3) in the second half at Dean E. Smith Center. Mandatory Credit: Bob Donnan-Imagn Images | Bob Donnan-Imagn Images

  • “I really like [Kyan] and Derek [Dixon] on the floor at the same time,” Davis continued. “I’ve always said that I love multiple ball handlers. You can’t take us out of our offense. And with those two, with the way that Georgetown was switching defenses, we always had somebody that can handle the basketball and get us into a set and get us organized.”

That was the first time in weeks where Evans was playing with complete confidence and was not hesitant shooting the ball from the perimeter. As for Dixon, it was the second straight game the freshman guard played a monumental role in the team’s win. Both players have an opportunity to replicate that level of production on Saturday.

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North Carolina film grants to create 4,900 jobs, boost economy

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North Carolina film grants to create 4,900 jobs, boost economy


North Carolina has approved film and entertainment grants for two television series and an independent feature-length film.

According to a release from Gov. Josh Stein, this is expected to create nearly 5,000 jobs and spend more than $113 million during production.

WESTERN NORTH CAROLINA: THE SURPRISINGLY GLAMOROUS STOMPING GROUND OF OSCAR FAVORITES!

The productions include season two of “The Hunting Wives,” approved for an award of up to $15 million, filming around Lake Norman and Charlotte, and the new series “RJ Decker” in New Hanover County, which was approved for an award of up to $11.6 million.

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The independent thriller “Widow,” which was approved for an award of up to $1.8 million, also recently completed filming in Davidson, Forsyth, Stokes, and Yadkin counties.

DISTRICT 12 OF ‘THE HUNGER GAMES’ IS NOW A HISTORIC PLACE IN NORTH CAROLINA

“We are excited to have these new productions in North Carolina creating 4,900 jobs for our state’s crew and film-friendly businesses,” Stein said in the release. “North Carolina remains a top state for film, and these grants enable us to continue our strong tradition of TV and film production excellence.”

Additionally, the romantic comedy film “Merv,” which was filmed in New Hanover County and received a North Carolina Film grant, released on Amazon’s Prime Video on Dec. 10.

CELEBRATING 70 YEARS: MOVIE MAGIC IN THE MOUNTAINS

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Other productions that were recently filmed in North Carolina include the films “Christy” and “Roofman,” as well as the popular series “The Summer I Turned Pretty.”

“These productions bring direct economic benefits and also raise the state’s visibility among audiences, leading to increased tourist activity and visitor spending over time,” said North Carolina Commerce Secretary Lee Lilley.



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