Summer is drawing to a close and as parents and children get ready for a new school year, their first lesson will be in economics.
Most of Donald Trump’s tariffs went into effect at the beginning of August. We are still waiting on a deal with China. But with school supplies so dependent on imports, consumers have been anxiously waiting to see how tariffs will affect the prices they see in stores.
A survey from the National Retail Federation (NRF) found that 12% more parents started back-to-school shopping earlier this year compared with last year, largely because of concerns over tariffs, and 72% of parents expect higher prices this year.
The NRF estimated the total expected spending for back-to-school shopping, from new clothes and electronics to pencils and paper, will total $39.4bn – the second highest on record, after 2023. Families with kids in kindergarten through 12th grade are budgeting, on average, $874.68 for everything they need for the year.
It’s still unclear exactly how much Trump’s new tariffs will affect prices. Companies have the power to increase prices as much as they want, but at the risk of losing customers to competitors.
“There’s a lot happening behind the scenes, like importers trying to renegotiate with their foreign suppliers, they’re trying to get their foreign suppliers to absorb some of the costs, they’re trying to absorb costs themselves,” said Sarah Dickerson, a research economist at the University of North Carolina at Chapel Hill.
At the beginning of the summer, Target announced it would maintain its 2024 prices for 20 “must-have supplies”, a move the company hopes will keep customers loyal during the back-to-school shopping season.
However, economists argue that retailers will eventually have to pass on the costs. A recent analysis from Goldman Sachs estimated that consumers paid 36% of tariff costs three months and 67% of costs four months after a levy was set.
These increases are only just starting to show up in inflation data. After dipping down in the spring, inflation has been rising since April, something that’s caught the attention of officials at the US Federal Reserve.
Tariffs “are starting to show up in consumer prices … [and] we expect to see more of that”, Fed chair Jerome Powell said in July. “We know from surveys that companies feel they have every intention of putting this through to the consumer.”
This of course is contrary to how the White House thinks. Trump has said that tariffs will either bring manufacturing back to America or help the country negotiate better trade deals. Trump has largely brushed aside the potential price increases and while conceded that the tariffs “won’t be easy, the end result will be historic”.
For parents starting their back-to-school shopping, Dickerson recommends taking the time to compare prices between stores since they may vary between retailers.
“Those individual prices are going to vary, which is why it makes sense, if you’re a parent, to shop around a bit and see what the different prices are out there,” she said.
Manitoba held its second draw of August this week, issuing invitations to skilled workers through the Manitoba Provincial Nominee Program (MPNP). (more…)
After a sweeping rally for U.S. stocks Friday fueled by rising expectations of an interest rate cut next month, earnings from the world’s most valuable company and a key measure of inflation could command the spotlight this week.
Chipmaker Nvidia (NVDA) has been front-and-center in the AI boom, with surging sales on growing demand for the emerging tech. Investors will likely be watching for updates on its most advanced offerings, as well as its plans to navigate changing trade policies, when the company posts its quarterly results.
Investors can also look forward to the latest release of the Federal Reserve’s favored measure of inflation, which could influence whether the central bank makes its first interest rate cut of the year in September.
Read to the bottom for our calendar of key events—and one more thing.
Nvidia’s second-quarter results due Wednesday could show whether the chipmaker continues to set the pace in the AI race, with analysts anticipating another sales record despite some headwinds from China export curbs.
Nvidia said in May that it expects to report growing revenue, though it warned of a hit from China export restrictions to the tune of $8 billion. The company could offer more updates on its business in China after making a deal with the Trump administration to share revenue from its AI chip sales there. Nvidia is also considering offering a variety of new products for the Chinese market in advance of government approval.
Some other companies set to report this week include chipmaker Marvell Technology (MRVL), Dell (DELL), CrowdStrike (CRWD), cloud provider Snowflake (SNOW), and engineering software maker Autodesk (ADSK), along with several Canadian banks.
A fresh update on inflation is set to come Friday, with the Personal Consumption Expenditures Index for July, after dovish remarks last week from Fed Chair Jerome Powell boosted expectations for a rate cut in September.
The June PCE report showed that inflation ticked higher that month, but a similar inflation report released earlier showed price increases in July were lower than some feared. The PCE report is the Fed’s preferred measurement of inflation, giving its reading potentially more impact with central bankers ahead of September’s interest rate decision.
This week will also bring a pair of consumer surveys, data on the U.S. trade balance, and housing market data, among other things.
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A new partnership between CME Group and FanDuel will soon allow for “event contracts” on a wide variety of events, letting users make bets on the outcome of the latest inflation report, cryptocurrency movements, where the S&P 500 finishes, and a host of financial marketplace results. Investopedia’s Nisha Gopalan has more on that here.
The open market dollar sale has recorded a sharp 50 percent decline this month, with currency dealers warning of renewed grey market activity that could pressure Pakistan’s exchange rate.
Banking market dealers noted that while remittance inflows remain steady at $3.2 billion in July, the steep fall in dollar sales is creating uncertainty. Open market money changers sold around $115 million to the banking system this month, significantly lower than the same period last year.
According to money changers, strict documentation rules for dollar purchases have reduced sales, with only small transactions of up to $500 being processed smoothly. A dealer, said the open market is facing a shortage of dollars, selling only what comes in from the public, while buyers appear to be snapping up the currency before it reaches money changers.
Money changers estimate sales for August may not exceed $200 million, compared to the average monthly figure of $350 million in FY25 and $300 million in July FY26.
Concerns are also mounting about the resurgence of illegal markets in major cities, where rates fluctuate between Rs287 and Rs292 per dollar. These higher rates are attracting individual sellers and buyers seeking dollars for tuition fees or medical costs abroad, despite the difficulties in securing funds for such legitimate needs.
The official exchange rate has been falling since the government crackdown on smugglers and illegal operators. The dollar dropped by Rs4 in the open market, sliding from Rs288.50 on July 22 to Rs283.58 currently.
Bankers clarified that the decline in the open market dollar sale is not linked to changes in government incentives for banks and money changers. They emphasized that remittance inflows remain strong but warned that price controls are enabling grey market players to exploit the gap by offering higher rates.
Analysts suggest the market could stabilize with stronger foreign exchange reserves, consistent remittances, and improved ties with key partners like the US and China. They also advised the State Bank to avoid large-scale dollar purchases, as seen in FY25, to maintain liquidity and stability.
Whether you decide to walk instead or you’re trying to ride in a Waymo, you might need to cancel an Uber ride someday.
If you do, there’s no evidence that it will hurt your rating on the app as a ride-hailing passenger. You can often avoid a cancellation fee as well — if you cancel at the right time.
Nate Galesic, an Uber rider in Atlanta, said he frequently cancels rides once he sees that he’s been matched with a human driver. He has used the method to improve his chance of being matched with one of the Waymo driverless cars that Uber has been using in the city since June.
Each time he cancels, Galesic said, he gets a refund from Uber immediately. “If you cancel the ride right away, you don’t have to pay,” he said. He also hasn’t noticed any hit to his rating because of all the cancellations, he told Business Insider.
There’s only one downside to all those canceled rides: A few times, Galesic said, Uber has blocked his ability to request rides for between 20 and 30 minutes after he canceled several rides in a row. He’s always been able to request more rides after that period is up, he added.
Uber did not respond to questions about its policy on canceling rides from Business Insider.
On its website, Uber does not say if canceling too many rides can affect a user’s rating. It does say, however, that drivers and riders have the chance to rate each other after a trip ends — meaning that the driver of your canceled ride might never have a chance to rate you.
Uber might charge you a fee for canceling your trip after the app has matched you with a driver, though it depends on the circumstances under which you make the cancellation.
For economy rides, such as UberX, UberXL, and Comfort, Uber allows riders to cancel a trip for free within two minutes of matching with a driver. The cutoff for premium rides, such as Black and Premier, is five minutes.
“In some cases, your cancellation fees will be based on how far the driver has already driven, how long it took the driver to arrive at your pickup location, and the time your driver has been waiting,” Uber says on its website. “These fees pay earners for the time and effort they spend getting to your location.”
Do you have a story to share about ride-hailing or the gig economy? Contact this reporter at abitter@businessinsider.com or 808-854-4501.
BEIJING, Aug. 24 — China has seen 823 million railway passenger trips between July 1, the start of the summer travel rush, and Aug. 23, data from the country’s railway operator revealed on Sunday.
This figure marks an increase of 6.4 percent from the same period of 2024, according to China State Railway Group Co., Ltd.
During the period, the daily average number of passenger trips handled by the country’s railways stood at 15.23 million, the group said.
The summer travel rush is usually a busy season for the railway network, fueled by college students returning home as well as increased family and tourist travels during the summer holiday.
The railway operator added that a series of measures have been rolled out to cater to surging demand — including boosting capacity on popular routes and during favored time slots, while also partnering with local cultural and tourism groups to enhance travel services.
MUMBAI (Reuters) -A criminal investigation into Indian industrialist Anil Ambani and his company Reliance Communications has no impact on Reliance Power and Reliance Infrastructure, the two companies said in separate releases on Sunday.
On Saturday, India’s Central Bureau of Investigation (CBI) conducted search operations in Mumbai at Ambani’s house and the offices of the now-insolvent Reliance Communications following complaints by the country’s largest bank, State Bank of India, about alleged fraud, the agency said.
Ambani, through a spokesperson, said on Saturday he strongly denies all allegations and would defend any charges.
The action by CBI has no impact on the business operations, financial performance, shareholders, employees, or any other stakeholders of either Reliance Power or Reliance Infrastructure, the statements said.
Ambani has not been on the board of Reliance Infrastructure or Reliance Power for more than three-and-a-half years and therefore any action in relation to Reliance Communications has no bearing or impact on the governance, management, or operations of the other two companies, the releases said.
Last month, India’s Enforcement Directorate also searched 35 locations linked to Reliance Group as part of an investigation into alleged money laundering and siphoning of public funds, a government source told Reuters.
Reliance Group did not respond to a request for comment at the time, but a source at the group denied the allegations.
(Reporting by Swati Bhatl; Editing by Lincoln Feast)
