Tariffs Drive Sustained Price Increases, CFOs Warn

Corporate finance leaders assert tariffs are contributing significantly to this year's inflation, with the latest rate at 2.9%. A reduction by a third WOULD align it with the Federal Reserve's 2% target. These findings challenge claims of "no inflation" and dismiss the notion that tariffs cause only temporary price adjustments.

CFOs anticipate tariffs will account for roughly 25% of next year's price hikes, signaling a prolonged impact. "This isn't a one-time thing. It is still going to be happening in 2026," one executive noted. The primary mechanism remains elevated import costs, with companies like Walmart, Target, and Nike already signaling price increases on select items.

Federal Reserve Chair Jerome Powell acknowledged tariff effects on consumer prices have been "slower and smaller than we thought," but cautioned the full impact may not yet be reflected. He observed a reversal in the decades-long trend of declining goods prices post-COVID, likely attributable to tariff policies.