Triangle families look for relief as inflation hits highest levels since January

RALEIGH, N.C. (WTVD) -- Families in the triangle say they're looking for ways to save as new data indicates inflation is showing no signs of slowing down.

The U.S. Bureau Of Labor Statistics released new data Friday showing inflation is up 3% compared to a year ago.

Data from Moody's Analytics says the typical American household is spending an extra $208 per month to buy the same goods and services as they were a year ago.

Now a trade dispute with one of the country's biggest trade partners could make it even worse for consumers.

Jacalyn Engler, of Raleigh, says she's seeing prices go up, especially at the grocery store.

"The food, I mean, it does seem more expensive," she said. "You buy very little and you spend $100."

Whitney Williams says it just makes it harder to get all that's needed for her family.

"Of course, you want to stay healthy, whereas junk food is a lot cheaper," she said.

"It's like, well, you don't want to choose the cheaper options to be unhealthy. Do you want to go for the healthy options? And so it makes it challenging."

UNC Kenan Institute Chief Economist Gerald Cohen says these difficult financial decisions are being felt nationwide.

"That's a challenge for households, because that means prices are rising at a faster rate," he said.

An end to trade talks with one of the US's most important trade partners could also cause prices on a number of goods to go up.

The Trump Administration announced Friday it would be ending trade talks with Canada over a negative TV ad airing in Ontario.

ABC News Business Correspondent Elizabeth Schulze tells Eyewitness News that this could impact inflation.

"We're talking about $3 billion of goods that travel between the U.S. and Canada every day," she said. "If there is more disruption to trade with Canada, we've already seen tariffs go into effect, that could trickle into higher prices, potentially, for consumers."

Cohen says the trade dispute with Canada will impact prices on fuel, lumber, wood products, automobiles, car parts, and produce.

The trade dispute could impact biotech businesses as well, one of the most vital industries to the Triangle's economy.

"Canada's a big exporter to the U.S. of machinery used in the production of drugs," said Cohen. "The prices of the drugs that we produce are likely to be higher because of the input costs."

Schulze says some of those higher costs for production could be passed on to the consumer now.

"A lot of businesses and sectors across the economy have tried to absorb the cost of the tariffs instead of putting them onto consumers, passing them down," she said.

"But the longer these tariffs go on, the more there are threats of new tariffs, that becomes harder. And what that could ultimately look like is higher prices for consumers at the store, just in time for the holiday shopping season."