According to J.P. Morgan Global Research, the inflation caused by recently implemented tariffs has yet to fully show up in American economic readings. The highly respected bank sees core personal consumption expenditures (PCE) inflation rising to a quarterly annualized rate of 4.6% in Q3 2025. The bank’s chief U.S. economist, Michael Feroli, says that “consistent with the experience of 2018-19, we expect that it will take two to four months for the peak effects of tariffs to be seen.”
In other words, the worst is yet to come. But what does an increased PCE rate mean for the average American, and what are the consequences if J.P. Morgan’s predictions come to pass? Here’s how you can prepare now.
