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
North Carolina’s Berger optimistic about budget, blames Democrats for primary loss
A top North Carolina lawmaker who suffered a stunning upset in his primary election last month spoke publicly about the result Tuesday, blaming the loss on political opponents across the aisle.
North Carolina Senate leader Phil Berger — who has led the chamber since 2011 — lost the Republican primary for his seat to Rockingham County Sheriff Sam Page by 23 votes, one of the closest elections in state history. Berger conceded defeat in a March 24 statement after a machine recount and partial hand recount yielded no change in Page’s lead.
Berger discussed the experience with reporters Tuesday after lawmakers convened for a short legislative session in Raleigh. Asked what message voters sent him in the primary, Berger said: “Democrats like to vote in some Republican primaries. That’s the message.”
Berger didn’t elaborate on his explanation. Registered Democrats are only allowed to take Democratic ballots in primary elections. But unaffiliated voters are allowed to participate in a party primary of their choice. Berger didn’t suggest changes to that law, but he mentioned possible examination of other election laws.
He said lawmakers should reconsider the number of days North Carolina allows for early voting in primaries. In-person early voting started on Feb. 12 and ended Feb. 28.
“Seventeen days of early voting just seemed pretty excessive and it really stresses the local boards of elections,” Berger said. Some county election boards struggle to find daily staffing for all of their voting sites in the early voting period, he said.
Minority Leader Sydney Batch, D-Wake, called Berger’s comments “an insult to his district and an affront to our democracy.”
“The voters sent him a clear message,” Batch said. “It’s time he accept it and get back to work to finish the job he still has, while he still has it. Pass a budget.”
State lawmakers haven’t adopted a comprehensive state budget since 2023. They were expected to do so last year, but Berger and Republican House Speaker Destin Hall have been at odds over a range of issues, including tax policy, Medicaid funding, and other line items affecting billions of dollars in state funding.
Berger said Tuesday that he and Hall were on the verge of a spending agreement for Medicaid, the government-funded health insurer for people who are young, impoverished or disabled. Republican legislators plan to approve Democratic Gov. Josh Stein’s $319 Medicaid request, while adding guardrails and oversight measures to prevent fraud and waste.
To strike the deal, Berger said Tuesday that he had agreed to postpone discussions about funding for a massive new children’s hospital. The 2023 budget authorized about $320 million over three fiscal years for North Carolina Children’s Health — a partnership between UNC Health and Duke Health — to open in Apex in 2032. About $216 million has already been spent. Hall has said his caucus wants to reconsider the final installment of funds, about $103 million, while Berger has called on House leaders to release the money.
“We’ve agreed to move the discussion of whether or not the House is going to honor the agreement they made in 2023 to the full budget discussion,” Berger said Tuesday.
Earlier Tuesday, Hall told reporters that progress had been made on negotiating children’s hospital funding.
“It’s not resolved yet,” Hall said. “I think there’s some questions about how much more money it’s going to need exactly in order to be a viable project. And so, you know, those discussions continue.”
Those budget negotiations are ongoing, but Berger said recent conversations have given him reason to be optimistic. “We’re having conversations,” he said. “They are substantive. They haven’t gotten us to an agreement yet, but we are continuing to talk, continuing to exchange ideas,” Berger said.
Hall described budget talks similarly: “The trajectory is good [enough] to where we’re very likely to get a budget done, hopefully sooner rather than later.”
Berger said that, in the final months of his term, he wants to focus on policies that make North Carolina a top destination for businesses.
“I’d like to continue the progress that we’ve made over the years in making North Carolina number one state for business and making North Carolina a competitive state in terms of our tax climate and our regulatory climate,” Berger said, adding that he wants to boost education funding as well.
Addressing property taxes
House and Senate Republicans are also offering separate proposals for limiting property taxes in North Carolina.
House Republicans are pursuing a constitutional amendment that would give the state more control over how much cities and counties can raise property taxes. On Tuesday, Berger said he doesn’t think there’s a consensus on the proposed amendment and noted that it would take several months to enact into law. Voters must approve constitutional amendments at the polls in order for them to become law.
“It’s a start that we can look at,” Berger said of the proposed constitutional amendment. “But that, by itself, would not actually go into effect until after the voters approve it, if they approve it, and then the legislature actually passes some sort of legislation.”
Berger said he plans to introduce a bill that freezes municipal property tax revaluations for 12 months while legislators study the issue further.
“We’ve got to do something,” Berger said. “I just don’t know that there’s consensus as to what that something is.
“The best thing that we can do at this point is just call a timeout and give the legislature an opportunity to try to review whatever proposals might be out there.”
North Carolina
North Carolina High School Football Program Promotes From Within
Less than two weeks after losing its head coach to Duke University, a North Carolina high school football program has been promoted from within.
Kevin Reddick will become the new head coach at Rolesville High School, replacing Ranier Rackley, who became the Director of Player Development at Duke University.
News of the decision was first reported by High School OT.
Reddick was the defensive coordinator for the Rams for the past three seasons, helping the team win 25 games during that run. Last year, Rolesville allowed just under 15 points per game with Reddick in charge of the defense.
North Carolina High School Promotes Defensive Coordinator To Head Coach
Rolesville finished 9-4 last season under Rackley and Reddick.
Reddick is a graduate of New Bern High School, helping the Bears capture the 2007 Class 4AA North Carolina High School Athletic Association State Football championship. He was tabbed the most valuable player of that title game as a sophomore fullback after scoring two touchdowns in a 28-17 victory over Independence.
At New Bern, Reddick earned conference defensive player of the year honors and was all-state at lineback as a senior after recording 189 tackles, eight quarterback sacks, six forced fumbles and four blocked punts. He also ran for over 160 yards and scored six touchdowns.
Kevin Reddick Was College Standout, Had NFL Career Before Becoming Coach
Following his high school career, Reddick signed with North Carolina as a four-star prospect, earning first team all-ACC honors as a senior. He also had offers from North Carolina State, Virginia and Clemson.
With the Tar Heels, Reddick played in 50 games, recording 275 tackles, including 36 for loss, with 8.5 quarterback sacks, two interceptions and two forced fumbles.
Reddick signed with the New Orleans Saints as an undrafted rookie free agent, and also had stints with the San Diego Chargers, Carolina Panthers and Buffalo Bills.
Rolesville reached the North Carolina High School Athletic Association State Football championship game with Reddick on the coaching staff and the third round this past season.
Rolesville Returns Top Rusher, Several Other Key Players
The Rams will be replacing starting quarterback Kaleb Williams, who had almost 2,500 yards passing and 22 touchdowns, as freshman Chase Williams was 8-for-8 for 98 yards with a touchdown in three games.
They will have top running back Amir Brown back, as he ran for 1,374 yards with 22 touchdowns and six games of 100 yards rushing as a junior. He also had 13 receptions for 106 yards and another TD.
Anthony Roberts is another key player back, as he caught 35 passes for 656 yards and nine TDs. Top tacklers Jayden Broadie, Javon Campbell, Genesis Allen and Keonte Sutton are all set to return, as well.
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North Carolina
Shooting in park near North Carolina school leaves two dead and several hurt
At least two people are dead and “several” others are injured after a “planned fight” at a North Carolina park escalated into a mass shooting, authorities said.
Police have identified several victims and suspects after Monday’s shooting at Leinbach Park near Jefferson Middle School, according to the Winston-Salem Police Department.
Authorities confirmed there were multiple victims in the shooting, but did not provide an exact number. The suspects were still at large over two hours later.
Officers were called to the park just before 10 a.m. after reports of a fight, which then escalated into multiple people shooting each other.
Area schools are not in lockdown, and classes are operating as normal, police said.
“Due to the number of people involved, efforts are ongoing to account for everyone. At this time, some of those involved in the incident are juveniles,” police said.
According to local news station WFMY, at least three people were taken to the hospital. Officials have not shared their conditions.
Police said the shooting was an isolated incident and remains under investigation.
This is a developing story
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