Friday, April 11, 2025

CPI Inflation Declines .01% on Energy in March 2025

Good news that inflation has been temporarily tamed and much of that is because of lower costs of energy. It might cost you a little less to heat your home or power your car. That is not a bad thing considering many things have gone up over the past few years. For those of us who are not rich, reduction in basic costs helps (save and invest). If you are a business, then energy is a major component of costs and profitability. You may want to read, 

March Consumer Price Index US Bureau of Labor Stats

Energy is important is a fundamental aspect of keeping the lights on, powering manufacturing and ensure the economy is functioning well. Gas/Oil are still one of the biggest contributors and therefore decreasing their cost has an upward economic lift. However, diversity of energy is also important so using various forms and creating multiple inputs that range from coal, nuclear, solar/hydro renewable, etc. Each energy source should be evaluated based on its total costs and benefits (including environment). 

Consider,

A Broader Perspective on Inflationary and Energy

In my theoretical lens decreasing energy costs in the U.P. is important. There has been a movement to utilize existing power plants more effectively. Let us also not consider some sustainable things we can do such as reducing waste and ensuring we keep the environment clean in the long term by thinking about new science and energy production/sustainability (science is additive process and cost parity is still important). 

Things take time and it is a process. Eventually in the future are likely to have very clean sources and use certain resources more frugally with increases in efficiency with everyday advanced technology(hypothetically) At this time in history oil, coal and nuclear are some of thecheaper sources but that doesn't mean we can't make them cleaner by reducing waste or continuing to explore diversification of the gride through local and regional production (protection from outages through redundancy). 

Source CPI March, 2025


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