Wall Street Breakfast Walmart warns of higher prices even with lower tariffs
May 15, 2025
Walmart warns that higher costs can't be fully absorbed by suppliers or retailers, hinting at potential price hikes. Unexpected wholesale inflation figures emerge, stirring market discussions. In a lighter note, McDonald's celebrates its 85th birthday, reminding us of fast food's cultural impact. The episode dives into economic insights, examining consumer spending and broader market stability amidst uncertainty.
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Walmart Warns of Rising Prices
- Walmart management warns tariffs will raise consumer prices despite reduced levels.
- Retail and suppliers cannot absorb these increases due to narrow margins.
Wholesale Inflation Falls Unexpectedly
- Wholesale inflation unexpectedly fell in April, indicating margin compression.
- This suggests consumers will absorb higher prices starting in May.
Watch Consumer Spending Caution
- Retail sales show no consumer rush ahead of tariffs.
- Watch for subtle belt tightening indicating consumer caution due to employment risks.