Willie R. Tubbs, FISM News

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A pair of reports from the Bureau of Labor Statistics show the cost of producing and purchasing essentials remains painfully high even with positive trends. 

According to the numbers found in the March Consumer Price Index (CPI) and Producer Price Index (PPI) reports, the cost of essentials increased by 0.1 percent in the last month while demand for products decreased by 0.5 percent.

The CPI data shows some encouraging signs, including a major decrease in the cost of energy both from February to March (3.5% drop) and year-over-year (17% drop).

Moreover, the cost of all items has risen 5% since this time last year, which marks the ninth consecutive month that the rate of inflation has cooled. It’s important, though, to put such developments in context. 

While comparatively smaller than the worst months of inflation that have occurred since January 2021, the March numbers represent 5% more expense on top of the rates Americans experienced over months of rapid inflation after President Joe Biden took office as well as the 40-year high of 9.1% inflation that occurred last June. 

In terms of the PPI numbers, the data suggests the rate at which the cost of production is rising has slowed, but the cost felt by the American consumer remains high. 

Sen. Rick Scott (R-Fla.) took to Twitter Thursday to put the numbers in perspective, pointing to a 116% increase in the cost of eggs, as well as other steep price increases for other essentials. 

“@JoeBiden had two years to lower costs and grow our economy,” Scott tweeted. “Unfortunately, he’s done the opposite, and it’s stretching Americans’ budgets to the MAX.”

According to today's PPI release, price increases over the year in March include:

🍊: +18.3%
🥚: +116.1%
🍝: +26.2%
🧹: +21.3%@JoeBiden had two years to lower costs and grow our economy. Unfortunately, he's done the opposite, and it's stretching Americans' budgets to the MAX.

— Rick Scott (@SenRickScott) April 13, 2023

Overall, the PPI is up 2.7% from a year ago, which is a promising sign as it shows the cost of production easing to its lowest rate of increase since January 2021. 

“Today’s report is further evidence that we are making progress bringing inflation down,” White House Press Secretary Karine Jean-Pierre said in a statement. “The annual inflation rate for producers is 2.7 percent — the lowest rate in more than two years. On average, prices set by businesses actually fell last month. This follows yesterday’s news that inflation for consumers is down substantially from its peak last summer. There is more work to do, but this is important progress for our economy and for American families.”

But, as was the case with the CPI data, the cooling on PPI has not overcome the massive spikes of 2021 and 2022. 

Scott contends that Americans do not need a report to tell them how things are going in the economy. 

“Ask any family if they are better off today than two years ago, and they will say no,” Scott tweeted. “Until we see real reforms when it comes to how Washington manages debt, families will continue struggling. I REFUSE to stand for that.”

In a release, Scott pointed out that the PPI is still up 16.7% since President Joe Biden’s first day in office. 

UNEMPLOYMENT CLAIMS JUMP

What enthusiasm the March CPI and PPI numbers might have engendered was also immediately tempered by the report of a sudden increase in jobless claims. 

As reported by Reuters, in the week ending April 8, 11,000 new applicants for unemployment aid emerged, bringing the total number of claims to 239,000.

This number, while still low, shows the nation creeping closer to the 270,000 claims mark, which economists say would indicate a more serious problem in the labor market. 

Reuters reported that total job openings continue to outnumber job seekers – about 1.7 openings per unemployed person – but these numbers do not take into account such factors as industry, specialization, pay rate, or required expertise.