It’s looking like inflation is back on the bingo card for 2025.
Using our rule of thumb that every 1 [percentage point] increase in the effective tariff rate would raise core [Personal Consumption Expenditures] prices by 0.1%, we estimate that the proposed tariff increases would boost core PCE prices by 0.9% if implemented
Disposal income might get further squeezed, meaning marketing efficiency will be ever more important.