What new economic signals mean for consumers
Despite some grim developments for American consumers, new economic data offers glimmers of hope.
(CNN)- Despite some grim developments for American consumers, new economic data offers glimmers of hope. In a new report, the United Nations downgraded its global GDP growth forecast to 2.4%—with U.S. growth projected at just 1.6% this year. While that marks a slowdown, economists say growth is still a positive sign.
Retail giant Walmart, often a bellwether for broader market trends, announced it will raise prices on some products, despite its longtime commitment to “Everyday Low Prices.”
“If Walmart has to raise prices, everyone’s going to raise prices,” said Gerald Storch, CEO of Storch Advisors. “You’re going to see price increases for some products. Other products, the cost increase will be absorbed at the source.” Walmart’s reliance on domestically sourced food items means the company is less affected by tariffs—helping it absorb some cost pressures. Still, the impact of inflation continues to ripple through supply chains and consumer wallets.
In a small win for shoppers, the Bureau of Labor Statistics reports egg prices are improving. President Donald Trump even weighed in: “Everybody had eggs for Easter at a very reasonable price.” An encouraging sign on the inflation front: the Producer Price Index (PPI), a key measure of wholesale prices, is down month over month. Economists say easing tariffs on Chinese imports are helping to stabilize inventory levels.
“If we had continued on that track, we would have had empty shelves,” said Torsten Slok, Chief Economist at Apollo Global Management. “Now the question, of course, is: Is lowering the tariffs enough to prevent empty shelves?”
Despite progress, Federal Reserve Chair Jerome Powell warns challenges remain. He signaled that interest rates may stay higher for longer due to ongoing inflation and global supply chain issues. “We may be entering a period of more frequent and potentially more persistent supply shocks,” Powell said. “A difficult challenge for the economy and for central banks.”
