Consumers may want to bring forward some big purchases before 2026 begins. According to Wells Fargo, prices for several everyday goods, especially home items and furniture, are expected to rise noticeably early next year as higher tariffs start working their way through the supply chain.
Retailers largely avoided sharp price hikes during the 2025 holiday season. Instead, many relied on targeted discounts and promotions to keep shoppers spending. Behind the scenes, however, companies were already preparing for higher costs.
Retailers rushed to stock up ahead of tariffs
In early 2025, many retailers front-loaded inventory purchases to avoid new import duties. Between May and September, inventories rose by 14%, giving stores extra stock to sell through without raising prices.
That buffer is now fading. Wells Fargo expects the volume of goods still in transit from overseas suppliers to jump by 62% in early 2026, and those shipments will face higher tariffs. Retailers are unlikely to absorb those costs, meaning price increases are likely to be passed on to consumers.
Home goods face the biggest pressure
Wells Fargo says home goods retailers are especially vulnerable because they depend heavily on imported products. Unlike apparel, where margins and pricing flexibility are higher, furniture and large household items leave little room to offset rising costs.
Some retailers have already started strategic price increases, and Wells Fargo warns that additional hikes could arrive quickly once higher-cost inventory hits store shelves.
Even a 10% increase on big-ticket items like furniture can significantly change affordability, the bank noted.
What shoppers should consider buying now
Wells Fargo suggests consumers consider purchasing now if they are planning to buy:
- Furniture and large home items
- Imported home goods
- Big-ticket household purchases
Buying before early 2026 could result in meaningful savings, especially for items that rely heavily on overseas manufacturing.
Apparel prices may also rise, but the impact is expected to be less noticeable because of lower base prices and more pricing flexibility.
Retail prices stayed relatively calm in 2025, but that stability may not last. As higher tariffs filter into new shipments, early 2026 could bring a new round of price increases, led by home goods and furniture.
For shoppers already planning major purchases, doing it sooner rather than later could pay off.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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