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 Foundation at center of I-Team Troubleshooter investigation could face contempt charge
DURHAM, N.C. (WTVD) — New details in an I-Team investigation into a Durham foundation accused of not paying its employees.
The North Carolina Department of Labor filed a motion in court to try to force the Courtney Jordan Foundation, CJF America, to provide the pay records after the state agency received more than 30 complaints from former employees about not getting paid.
The ABC11 I-Team first told you about CJF and its problems paying employees in July. The foundation ran summer camps in Durham and Raleigh, and at the time, more than a dozen workers said they didn’t get paid, or they got paychecks that bounced. ABC11 also talked to The Chicken Hut, which didn’t get paid for providing meals to CJF Durham’s summer camps, but after Troubleshooter Diane Wilson’s involvement, The Chicken Hut did get paid.
The NC DOL launched their investigation, and according to this motion filed with the courts, since June thirty one former employees of CJF filed complaints with the agency involving pay issues. Court documents state that, despite repeated attempts from the wage and hour bureau requesting pay-related documents from CJF, and specifically Kristen Picot, the registered agent of CJF, CJF failed to comply.
According to this motion, in October, an investigator with NC DOL was contacted by Picot, and she requested that the Wage and Hour Bureau provide a letter stating that CJF was cooperating with the investigation and that repayment efforts were underway by CJF. Despite several extensions, the motion says Picot repeatedly exhibited a pattern of failing to comply with the Department of Labor’s investigation. The motion even references an ITEAM story on CJFand criminal charges filed against its executives.
The NC DOL has requested that if CJF and Picot fail to produce the requested documentation related to the agency’s investigation, the employer be held in civil contempt for failure to comply. Wilson asked the NC Department of Labor for further comment, and they said, “The motion to compel speaks for itself. As this is an ongoing investigation, we are unable to comment further at this time.”
ABC11 Troubleshooter reached out to Picot and CJF America, but no one has responded. At Picot’s last court appearance on criminal charges she faces for worthless checks, she had no comment then.
Out of all the CJF employees we heard from, only one says he has received partial payment.
Copyright © 2026 WTVD-TV. All Rights Reserved.
Kate Barr is a Democrat.
But when voters in North Carolina’s 14th Congressional District open their ballots in the March primary they’ll find an “R” next to her name.
She is literally a RINO or Republican In Name Only.
Barr considers herself a Democrat but said she’s running as a Republican to make a point about gerrymandering.
“Fundamentally… I hate gerrymandering. That is pretty much my core motivation for everything I do in politics,” Barr told Spectrum News 1.
The district, west of Charlotte, is solidly Republican.
The current congressman won by 16 points last election.
Barr said it speaks to just how gerrymandered North Carolina is. State Republican lawmakers recently approved a congressional map that favors Republicans in 11 of the state’s 14 congressional districts.
That’s in a state that only voted for President Donald Trump by three points in 2024 and elected a Democrat for governor.
“When the North Carolina state legislature passed the new congressional maps that further gerrymandered this state it became clear there has to be a political price for this behavior,” Barr said.
This is not the first unusual campaign for Barr.
In 2024 she ran as a Democrat in a district that heavily favored Republicans. The focus again was to draw attention to gerrymandering.
Her motto was “Kate Barr can’t win.”
She did not win, losing by 30 points.
But Barr was encouraged by some of the results she saw and in November launched her campaign for Congress.
This time she decided to run as a Republican.
She’s hoping that gives her an edge because in North Carolina voters not registered with either major party, known as unaffiliated, are the largest voting block in the state, and can participate in the Democrat or Republican primaries.
“Voters understand that the way to have a say is to choose which primary is actually going to elect their leader and vote in that primary,” Barr said. “I can absolutely win in this one… because primary turnout is so low it just doesn’t take that many people showing up and saying we’ve had enough to unseat an incumbent.”
Barr faces former North Carolina Speaker of the House and incumbent Republican congressman Tim Moore. His campaign told Spectrum News 1 that “Kate Barr’s latest stunt is an insult to Republican voters. Folks know a far-left fraud when they see one, and she doesn’t belong in our primary.”
Whether she wins or not, Barr hopes to encourage a fix to gerrymandering, an issue that’s front and center in North Carolina and around the country.
“Gerrymandering is wrong no matter which party is doing it, and we need to put an end to it. Period,” Barr said. “The goal, end result, is to have an independent commission in every state made up of citizens.”
Follow us on Instagram at spectrumnews1nc for news and other happenings across North Carolina.
POLK COUNTY, N.C. (WLOS) — Two people are dead after a truck ran off the road in Polk County, according to the North Carolina Highway Patrol.
HIGHWAY PATROL SEEKS PUBLIC’S HELP IN FATAL HIT-AND-RUN THAT CLAIMED LIFE OF LEICESTER MAN
Highway patrol says the fatal collision occurred at approximately 12:55 p.m. when an F-150 was traveling east on North Carolina 108 near Farm Lane.
The truck ran off the road and struck a tree, catching fire and being consumed by the flames.
According to the Highway Patrol, the driver and passenger were trapped in the vehicle and died as a result of the collision and the fire.
UPDATE: MULTI-CAR CRASH ON ASHEVILLE BRIDGE NOW CLEARED
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Highway Patrol says it is working with the Medical Examiner’s Office to identify the deceased.
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