Written by Michael Thervil
It's that time again, as March kicks off with a lot of changes especially in the financial sector, many Americans and businesses are finding it hard to stay afloat. Within small and medium-sized businesses either filing for bankruptcy or closing in record numbers, there’s also a sizable number of major businesses that are laying off employees by the hundreds and thousands. Even the federal government is laying off employees – even as it holds the title as the largest employer in the United States. However, in the case of the federal government, its reason for laying off the massive number of employees revolves around the issue of “waste, fraud, and abuse”.
Taking a look at February 2025 CPI report, on the surface we see that when it comes to “All Items” there was a 2.8% decrease from the previous month of January in which “All Items” stood at 3.0%. Looking at the “Food” category which stands at 2.6%, 0.1%, higher than January 2025. Drilling down into “Food”, it's easy to see that the trend of Americans eating “Food Away From Home” (3.7%) significantly outweighs Americans that are eating “Food From Home” (1.9%). This trend stayed the same from the previous month, but when it came to Americans eating out this month, it increased by 0.3% for a total of 3.7%.
Looking at “Food From Home”, Americans spent significantly more for “Meats, Poultry, Fish, And Eggs” (7.7%). This is due to several variables which consisted of bird flu, flock culling, inflation, and tariffs. “Non-Alcoholic Beverages and Beverage Materials” were the next big category even though it only stood at 2.1% - and even that was down 0.1% from January. Everything that falls in this category is not even worth talking as they stand at the following percentage points: “Cereals and Bakery Products” (0.3%), “Dairy and Related Products” (0.8%), “Fruits and Vegetables” (-0.2), and “Other Food From Home” which stands at 0.1%.
Looking at the “Food Away From Home” category; “Full-Service Meals And Snacks” and “Limited Meals And Snacks” were nearly neck and neck at 3.7% and 3.5% respectively. Again, the question that the American government needs to be asking itself is why is eating at restaurants, specifically fast food cheaper than eating at home? Like it or not, despite energy giants making claims that the world needs more energy, “Energy” for the month of January fell into the negative by -0.2%.
Drilling down into the “Energy” category within the CPI report for January 2025, there seems to be an almost even split between “Energy Commodities” and “Energy Services”. “Energy Commodities” are down in the negative by -3.2% while “Energy Services” went up to 3.3%. Previously in January it was reported that “Energy Commodities” stood at -0.5%, this is a -2.8% difference with “Energy Services” increasing from 2.5% to 3.3%. Within the “Energy Commodity” sector, both “Fuel Oil” and “Gasoline (All Types)” also fell to -5.1% and -3.1% respectively.
The category of “All Items Less Food and Energy” took the cake this month at 3.1% even though it slightly decreased from the previous month (3.3%), resulting in a 0.2% decrease. Within the “All Food Less Food and Energy”, “Commodities Less Food and Energy” dipped into the negative by -0.1%. Drilling down into this section, it was “Tobacco and Smoking Products” which grossed the most at 6.6%, followed by “Medical Care Commodities” at 2.3%. Coming in at third place was “ alcoholic beverages” 1.7%. “Apparel” was down at 0.6%, “Used Cars” were down 0.8%, and “New Vehicles” sales were in the negative at -0.3%. Lastly, within the “All Items Less Food and Energy”, “Shelter”, “Medical Services”, and “Transportation Services” stood at 4.2%, 3.0%, and 6.0% respectively.
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