Inflation’s Tug-of-War, and Lessons from AnnaMaria DeSalva | C-Suite Insights 7.23.25
Welcome back, readers! This week’s newsletter is a 4-minute read.
Number of the Week: 2.7%
Total Consumer Price Index (CPI) inflation climbed to 2.7% year-over-year in June, up from 2.4% in May. That headline number reflects two opposing trends: Goods inflation is rising on the back of merchandise most prone to tariffs, but that upward pressure has so far been offset by disinflation in services.
The TCB take: Led by the cooldown in services, core CPI, which excludes food and energy, surprised to the downside for the fifth straight month in June. But we estimate tariffs may substantially raise underlying inflation in the coming months.
June’s retail sales data show that consumers remain resilient—for now. However, rising prices over the summer will likely weigh on demand, as additional tariffs scheduled to go into effect on August 1 further increase the cost of goods heading into the holiday season.
We project both headline and core personal consumption expenditure inflation, which CPI feeds into, to peak slightly above 3% y/y in Q4. By that time, signs of a significant slowdown in economic growth will be more evident, triggering action from the Fed.
LESSONS FROM LEADERS »
We are in uncertain and challenging times. What do you do to stay adaptive and resilient?
“I strive to expand and leverage my learning networks—there are many opportunities now to tap vast knowledge and experience addressing the forces that are reshaping our world. I also habitually consider the creative opportunity afforded by disruptive change, and I have an active, ongoing related discussion with myself and others. Finally, I have doubled down on 'whole person' principles; I am most resilient, and I find my renewal, when I'm fully engaged in the activities that keep me physically, mentally, spiritually, and emotionally strong.”
— AnnaMaria DeSalva , former global chairman of Burson and a Committee for Economic Development Trustee
NAVIGATING WASHINGTON »
New Clean Energy Rules Raise Urgency and Risk for Developers
The White House issued an Executive Order directing agencies to accelerate the repeal of federal clean energy subsidies, implementing provisions from the recently passed One Big Beautiful Bill Act (OBBBA).
What it says: The Order instructs the Treasury to strictly enforce the rollback of Sections 45Y and 48E tax credits and limits safe harbor provisions for wind and solar projects unless significant construction has already begun. It also calls on Interior to eliminate regulatory preferences for renewable energy within 45 days.
Why it matters: This marks a significant policy pivot that could disrupt timelines and financial planning for clean energy developers. The push for construction projects to start earlier to qualify under a narrow exemption may create a near-term development surge—while longer-term project viability grows more uncertain.
The TCB take: Energy companies, investors, and manufacturers must re-evaluate project pipelines, tax planning, and compliance strategies. Firms with global supply chains should assess risk exposure to enhanced Foreign Entity of Concern rules, which may limit eligibility and heighten scrutiny of partnerships, particularly with Chinese-linked entities.
ASK TCB »
We keep losing great people—and it’s costing us a fortune. How can we hire talented people who will stick around?
You don’t have to start from scratch. Boomerang hires—former employees who left on good terms—can be some of your strongest rehires. They already know your culture, systems, and people, which means faster onboarding, less training, and fewer hiring misfires. They’re also 12% less likely to leave in the first year than external hires.
The key is shifting your mindset: Leaving isn’t always disloyalty. Many employees leave to grow—not to escape—and return with new skills, perspective, and a deeper appreciation for what your company offers.
To do this successfully, stay connected through an alumni network, normalize employee returns by telling the stories of those who’ve come back and thrived, make their re-entry seamless, and train managers to welcome them back without resentment or bias.
Done well, bringing back great leavers isn’t just a hiring shortcut—it’s a long-term talent advantage. To learn more about rehiring talent you already trust, read our report.
— Robin Erickson PhD , Head of Human Capital Research at The Conference Board
Send your burning business questions to CSuiteInsights@tcb.org.
GOVERNANCE &SUSTAINABILITY »
Supply Chains Face Binding Human Rights Duties. Is Your Company Prepared?
Human rights due diligence in supply chains is evolving from voluntary commitments to enforceable legal obligations in both the US and EU. These developments are raising expectations for boards, legal teams, and procurement leaders.
Are companies prepared? Despite regulatory momentum, only 68% of surveyed executives said their firms are “generally prepared” for human rights supply chain laws—and none described their firms as “very prepared.”
The TCB take: Human rights due diligence is no longer a peripheral corporate responsibility issue—it is a core legal, compliance, and commercial requirement, particularly across complex global supply chains. This shift demands:
Produced with Weil, Gotshal & Manges LLP
MARKETING & COMMUNICATIONS »
Customer Satisfaction Metrics Abound—But Actionable Insights Remain Elusive
Customer satisfaction has never been easier to measure—or harder to act on. Thanks to digital tools, companies now capture satisfaction data at nearly every touchpoint. But translating that data into meaningful, profitable improvements to the customer experience remains a major challenge.
A bounty of data: Many businesses—especially in sectors like travel, retail, and financial services—invest heavily in customer satisfaction surveys but struggle to prioritize changes that drive real impact. According to the June 2025 CMO+CCO Meter survey, nearly 80% of marketing and communications leaders say understanding the link between satisfaction and profitability is critical, yet 40% admit they lack that understanding today.
The TCB take: To close the gap, executives should rethink how satisfaction metrics are collected and used. Aligning insights with transaction data, piloting improvements, balancing measurement with action, and leveraging AI and synthetic data could all help transform customer sentiment into a strategic advantage.