Skip to main content

Posts

August 2025 PPI: Behind the Headline Decline, Minority Businesses Still Face Rising Costs

The Bureau of Labor Statistics reported that the Producer Price Index (PPI) for final demand fell 0.1% in August , after a sharp 0.7% increase in July and a modest 0.1% gain in June . On a year-over-year basis, PPI rose 2.6% , while core PPI (excluding food, energy, and trade services) increased 0.3% in August , marking the fourth consecutive monthly rise and a 2.8% annual increase —the highest since March 2025. At first glance, the decline may suggest relief. But when examined sector by sector, the structural cost shift is still very much in play—hidden cost pressures continue to weigh on the businesses least able to absorb them. Structural Cost Shift: Masked by Averages A structural cost shift occurs when price declines in non-essential categories obscure the rising cost of essentials—food, housing, energy, transportation, and healthcare. This disproportionately affects Black and minority-owned businesses, which: Operate with slimmer margins and less access to affordable ...
Recent posts

Black Unemployment Grew as Predicted. Shea Carlberg, Intern, George Washington University

The first Friday of the month has rolled around, which means the Bureau of Labor Statistics has released their anticipatory national unemployment numbers. Now, we were prepared to take these numbers with a grain of salt, but they appear to be on point (as far as we can tell.) As predicted , the Black unemployment numbers not only remain steady through August but rose significantly — a jump worth taking note of. We at Creative Investment Research predicted the overall Black employment rate would be up to 7.3%, however, the rate jumped to 7.5%. For Black men we were on target, correctly predicting a whopping 7.1%, which went up from last month’s 7.0%. This roughly translates to an additional 30,000 unemployed Black men. Then there’s the ever-concerning Black women unemployment rate that we predicted to be 6.4% but leapt to 6.7%. This amounts to approximately 45,000 more Black women left without a job during the final months of summer.

What to Expect from Friday’s August Jobs Report: Trouble Ahead for Black Workers (Especially Black Women)

What to Expect from Friday’s August Jobs Report: Trouble Ahead for Black Workers (Especially Black Women) As Friday, September 5, 2025 , approaches—mark your calendar for the Bureau of Labor Statistics (BLS) release at 8:30 a.m. ET —this preview underscores the persistent struggles facing Black workers, with a specific focus on Black women. See:  https://www.blackenterprise.com/black-women-loss-extra-106000-jobs-april-unemployment/ 1. U.S. Labor Market Outlook Economists forecast nonfarm payrolls rose by approximately 75,000 jobs in August, signaling a soft recovery. Meanwhile, the national unemployment rate is expected to tick up from 4.2% to 4.3% .  2. Black Workers: No Relief in Sight The last available data showed the Black unemployment rate at 7.2% in July 2025 , the highest since late 2021.  August Forecast: Given the labor market softening, overall Black unemployment is expected to remain elevated—forecasted at  7.3% , barring any sudden improvement. 3...

Real GDP reported at an annualized rate of 3.3%, for 2nd Qtr 2025 up from the initial 3.0% estimate. Issues remain, however.

  The Bureau of Economic Analysis (BEA) released its Second Estimate for Q2 2025, reporting: Real GDP grew at an annualized rate of 3.3% , revised up from the initial 3.0% estimate. This rebound is largely tied to a sharp reduction in imports (after a surge in Q1), which mechanically lifted GDP by over five percentage points—since imports are subtracted in GDP calculations . Consumer spending also picked up more than previously thought, improving from an initial 1.4% estimate to about 1.6% . Real final sales to private domestic purchasers —a critical metric for underlying demand—was revised to  1.9% , up from 1.2%. Corporate profits turned around sharply, rising $65.5 billion in Q2 after a steep $90.6 billion decline in Q1 . Why Minority-Owned Businesses May Still Be Under Pressure 1. Import Sensitivity Across Regions & Industries Many Black‑ and minority‑owned firms in manufacturing, retail, hospitality, and construction rely on imported good...

Letter to the editor: Trump's threats to the Fed's independence must be resisted. American Banker Newspaper. August 21, 2025, 2:39 p.m. EDT.

Trump’s latest demand—that Federal Reserve Governor Lisa Cook resign—is more than political theater. It’s a strategic assault on the Fed’s independence and a troubling effort to expunge Black leadership from America’s most consequential economic institutions. Cook, the first Black woman appointed to the Fed’s Board of Governors, faces unsubstantiated mortgage-fraud allegations that come abruptly from Bill Pulte, director of the Federal Housing Finance Agency and a known Trump affiliate. President Trump swiftly echoed these accusations via social media, demanding that she “resign, now!!!” No credible investigation or due process has confirmed wrongdoing—underscoring the politically expedient character of the charges. This incident is not isolated. Trump’s persistent efforts to pressure Chair Powell—mocking him publicly, criticizing Fed building renovations, and nominating rate-cut friendly governors like Stephen Miran—reveal a partisan campaign to reshape the Federal Reserve into an ins...

July 2025 PPI: A Structural Cost Surge Deepens Burden on Black Businesses

  July 2025 Producer Price Index Summary Analysis The Producer Price Index (PPI) for Final Demand jumped 0.9% in July , marking the largest single-month increase since mid-2022. On a year-over-year basis, PPI rose 3.3% , indicating sustained producer-side inflation. Core PPI (excluding food, energy, and trade services) mirrored this climb with a +0.6% monthly and +2.8% annual gain—the steepest in over three years. The spike was driven by final demand services (+1.1%) —along with price pressures in machinery wholesaling (+3.8%) , transportation, and accommodations. Final demand goods increased by 0.7% , largely due to surging food prices—particularly fresh and dry vegetables (+38.9%), meats, diesel, jet fuel, and eggs. Structural Cost Shift: What It Means for Minority-Owned Businesses A structural cost shift occurs when inflation disproportionately rises in essential sectors disproportionately impacting marginalized groups—while headline inflation may appea...

July 2025 CPI: Inflation Burden on Black and Minority-Owned Businesses

  The Bureau of Labor Statistics reports that the Consumer Price Index (CPI) rose 0.2% in July , keeping the annual inflation rate at 2.7% . Core inflation—excluding food and energy—remained elevated at 3.1% , the highest since February 2025. To many Black and minority-owned businesses , the numbers hide a troubling reality: inflation is shifting to the essentials, creating what economists call a structural cost shift —and that shift is hitting communities of color hardest. What is a Structural Cost Shift? A structural cost shift occurs when prices in essential categories rise faster than the overall inflation rate, while other goods remain flat or fall. This makes the headline CPI appear modest, even as the cost of living and doing business increases sharply for those who rely most on these essentials. For minority households and firms, the essentials are: Housing & rent Utilities & energy Food & groceries Transportation Healthcare When these categorie...