Health Insurance and Utilities Propel 2025 Business-Cost Surge, With 2026 Slowdown Ahead
New York Fed’s Liberty Street Economics reports that in 2025, firms saw cost increases accelerate, led by employee health insurance (roughly 13–14%), utilities (~8%), and business insurance (~7–7.5%), with manufacturers facing about 8% costs for goods and materials. Tariffs contributed to input costs for some firms. Wages rose modestly (~3.4%) and rents ~2%. Firms expect costs to ease in 2026 to around 4.8% for manufacturers and 5.4% for service firms, and the series will further examine health-insurance effects on wages and pricing/inflation expectations.