Grocery Price Pressures: A Major Vibe Source
The shutdown of the Strait of Hormuz has pushed diesel prices up about $2 per gallon—a 55% jump—raising transportation costs for the 80% of U.S. food that moves by truck. Simultaneously, the war has disrupted global fertilizer supplies, foreshadowing higher planting costs and longer‑term food price pressure. Distributors, who have already absorbed earlier shocks, now have little margin left and are expected to pass more costs to retailers and shoppers. As grocery price volatility eclipses gas volatility, consumer sentiment is souring despite relatively stable core inflation.
How's The American Consumer Doing?
The latest GDP data shows business investment, driven largely by AI spending, outpacing consumer spending for the first time in decades, contributing 1.4 percentage points versus 1.1 points to Q1 growth. While overall consumer spending remains robust—still 70% of U.S....
Once Again, Consumers End Up Losing Out On Trump's Tariffs
The Supreme Court declared President Trump’s use of the International Emergency Economic Powers Act to impose reciprocal tariffs illegal, prompting a wave of refund claims from businesses. More than 3,000 companies, including FedEx and Costco, have sued the administration to...
A Quick Note on Where We Are in the War
The post notes that oil prices have slipped from recent highs while gasoline costs continue to climb, highlighting a disconnect between crude and retail markets. It contrasts the Trump administration’s quick, low‑cost intervention in Venezuela with the more complex Iran‑focused...