As we wrap up the first quarter of 2025, the economy is still dealing with rising prices and global trade issues—both of which could impact your wallet. Inflation remains high, with everyday costs up 2.8% compared to last year. That means groceries, gas, and other essentials may still feel expensive. Meanwhile, new tariffs—like a 25% tax on auto imports—are driving up costs for businesses, which could eventually trickle down to consumers.

People are feeling less confident about the economy as they adjust to higher prices and an unpredictable market. Stocks have taken a hit this year, with the S&P 500 down 4.59% and the Nasdaq dropping 10.42% for 1st quarter, making investors more cautious. However, bonds have performed well, gaining 2.74% so far for the quarter, providing some stability for those with diversified investments.

What does this mean for you? If you’re investing, now’s a good time to make sure your portfolio is balanced. If you’re budgeting, expect prices to stay elevated for a while. And if you’re thinking about a big purchase—like a car—be aware that tariffs could make them more expensive in the months ahead.

*SP 500, Nasdaq and US Aggregate Bond Index can not be invested in directly