The US economy may be showing signs of relief from the inflationary pressures that have been weighing on consumers and businesses alike. Economist Dr. Matt Will joined Tony Katz to break down the latest numbers and offer his insights on what they mean for the future.
Inflation Relief
According to Dr. Will, the Producer Price Index (PPI) is a key indicator of inflation, and the latest numbers show a decline of 0.3% – a welcome respite from the rising costs that have been plaguing businesses and consumers. The drop in energy prices, particularly gasoline, has been the main driver of the decline.
However, Dr. Will cautioned that the story isn’t entirely rosy. While the core goods sector, excluding food and energy, rose by 0.2%, the processing of intermediate goods saw a significant increase of 0.6%. This is a sign that businesses are still absorbing input costs and not passing them on to consumers.
The conversation turned to the impact of tariffs on the economy, with Dr. Will explaining that they create inefficiencies in the global economy by changing consumer behavior. The discussion also touched on the banking sector, which is experiencing huge profits.
Original reporting: 93.1 WIBC (Indianapolis) — read the source article.
