North Carolina
‘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.
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.
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%.
“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.
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.
“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.
“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.
North Carolina
NC health officials urge vaccines amid measles and respiratory illness surge
ASHEVILLE, N.C. (WLOS) — The North Carolina Department of Health and Human Services (NCDHHS) is responding to the most recent measles cases and a spike in respiratory illnesses in North Carolina.
In a meeting hosted by NCDHHS, health officials stressed the importance of staying up to date on vaccines.
Those officials were also asked about the vaccination status of the three kids who tested positive for measles in Buncombe County.
“The three cases in Buncombe County, all three of them, had at least one dose of MMR vaccine,” said Dr. Erica Wilson with NCDHHS.
News 13 reported on Tuesday that the three siblings contracted measles after visiting Spartanburg County, South Carolina, where there’s currently a large measles outbreak.
3 BUNCOMBE COUNTY CHILDREN CONTRACT MEASLES AFTER SOUTH CAROLINA VISIT, NCDHHS REPORTS
The Mission Hospital Emergency Department waiting room in Asheville was listed as a possible measles exposure location on Sunday, Jan. 4, between 2 a.m. and 6:30 a.m.
Mission Health sent News 13 a statement, saying in part, “Our hospitals work with state and federal health officials on proactive preparedness, and we are following guidance provided by the CDC.”
The hospital provided state health officials with a list of 26 people who may have been exposed to measles on Jan. 4, according to Mission Health.
It’s not just Buncombe County that has reported measles in North Carolina recently.
“One in Polk County and three in Buncombe County. Additionally, there was a measles exposure alert we released in Gaston County. All are connected to an ongoing measles outbreak in Spartanburg County, South Carolina,” said Dr. Kelly Kimple with NCDHHS. “About 90% of unvaccinated individuals who are exposed will become infected.”
POLK COUNTY CHILD CONTRACTS MEASLES AFTER SOUTH CAROLINA VISIT, NCDHHS REPORTS
In the meeting, health officials also addressed the increase in respiratory illnesses like respiratory syncytial virus (RSV), COVID-19, and influenza.
“Whether it’s the childhood immunizations for things like measles, mumps, and rubella, or even the seasonal immunizations for things like RSV, COVID, and flu, vaccines are a critical and important part of remaining healthy and having healthy communities,” said NCDHHS secretary Dr. Devdutta Sangvai.
Additionally, as News 13 previously reported, there was a chickenpox outbreak in Buncombe County, with four cases confirmed at Fairview Elementary as of Jan. 6.
Health officials are reminding people that it’s not too late to get their seasonal vaccines. There are also additional preventative actions to protect oneself against respiratory viruses.
FLU CASES SURGE IN NC, STRAINING HOSPITALS AND INCREASING DEATH TOLL
“This includes regularly washing your hands with soap and water,” said Kimple.
Kimple suggests avoiding touching your eyes, nose and mouth. She also said to clean and disinfect frequently touched surfaces that may be contaminated.
“Cover those coughs and sneezes with a tissue and then discard the tissue promptly. Stay home when sick, except to seek medical care or testing, and take steps to avoid spreading infection to others in your home,” said Kimple.
NCDHHS also has helpful resources on its website, like a measles immunity checker, information about vaccines, and a program that helps eligible families get free vaccines.
North Carolina
A town in western North Carolina is returning land to the Eastern Band of Cherokee Indians
FRANKLIN, N.C. (AP) — An important cultural site is close to being returned to the Eastern Band of Cherokee Indians after a city council in North Carolina voted unanimously Monday to return the land.
The Noquisiyi Mound in Franklin, North Carolina, was part of a Cherokee mother town hundreds of years before the founding of the United States, and it is a place of deep spiritual significance to the Cherokee people. But for about 200 years it was either in the hands of private owners or the town.
“When you think about the importance of not just our history but those cultural and traditional areas where we practice all the things we believe in, they should be in the hands of the tribe they belong to,” said Michell Hicks, principal chief of the Eastern Band of Cherokee Indians. “It’s a decision that we’re very thankful to the town of Franklin for understanding.”
Noquisiyi is the largest unexcavated mound in the Southeast, said Elaine Eisenbraun, executive director of Noquisiyi Intitative, the nonprofit that has managed the site since 2019. Eisenbraun, who worked alongside the town’s mayor for several years on the return, said the next step is for the tribal council to agree to take control, which will initiate the legal process of transferring the title.
CHEROKEE CHIEF SIGNS ORDINANCE FOR FIRST OFFICIAL DEER SEASON ON TRIBAL LANDS
“It’s a big deal for Cherokees to get our piece of our ancestral territory back in general,” said Angelina Jumper, a citizen of the tribe and a Noquisiyi Initiative board member who spoke at Monday’s city council meeting. “But when you talk about a mound site like that, that has so much significance and is still standing as high as it was two or three hundred years ago when it was taken, that kind of just holds a level of gravity that I just have no words for.”
In the 1940s, the town of Franklin raised money to purchase the mound from a private owner. Hicks said the tribe started conversations with the town about transferring ownership in 2012, after a town employee sprayed herbicide on the mound, killing all the grass. In 2019, Franklin and the Eastern Band of Cherokee Indians created a nonprofit to oversee the site, which today it is situated between two roads and several buildings.
“Talking about Land Back, it’s part of a living people. It’s not like it’s a historical artifact,” said Stacey Guffey, Franklin’s mayor, referencing the global movement to return Indigenous homelands through ownership or co-stewardship. “It’s part of a living culture, and if we can’t honor that then we lose the character of who we are as mountain people.”
LUMBEE TRIBE OF NORTH CAROLINA GAINS LONG-SOUGHT FULL FEDERAL RECOGNITION
Noquisiyi is part of a series of earthen mounds, many of which still exist, that were the heart of the Cherokee civilization. The Eastern Band of Cherokee Indians also owns the Cowee Mound a few miles away, and it is establishing a cultural corridor of important sites that stretches from Georgia to the tribe’s reservation, the Qualla Boundary.
Noquisiyi, which translates to “star place,” is an important religious site that has provided protection to generations of Cherokee people, said Jordan Oocumma, the groundskeeper of the mound. He said he is the first enrolled member of the tribe to caretake the mound since the forced removal.
“It’s also a place where when you need answers, or you want to know something, you can go there and you ask, and it’ll come to you,” he said. “It feels different from being anywhere else in the world when you’re out there.”
The mound will remain publicly accessible, and the tribe plans to open an interpretive center in a building it owns next to the site.
North Carolina
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