by Matthew Holloway | Mar 15, 2026 | Economy, Must Read, News
By Matthew Holloway |
Inflation rose slightly in February, with the Consumer Price Index reaching 2.41 percent year over year, according to the latest monthly inflation update released Wednesday by the Joint Economic Committee.
The committee’s report found that CPI-U inflation increased from 2.39 percent in January to 2.41 percent in February. Core CPI, which excludes food and energy prices, declined slightly from 2.50 percent in January to 2.46 percent in February. The Federal Reserve targets inflation of roughly 2 percent over the long term, making CPI readings near that level a key benchmark for policymakers.
Economists often monitor both measures when assessing inflation trends. Headline CPI reflects the full range of consumer price changes, including food and fuel, while core CPI removes those categories because they can fluctuate sharply from month to month due to factors such as commodity markets and weather-related supply disruptions.
The update noted that the figures do not include potential increases in energy prices that could result from ongoing military activity in the Middle East.
Food prices continued to rise faster than overall inflation. Year-over-year food price inflation reached 3.06 percent, an increase of 0.45 percentage points compared with the previous month.
Energy prices also increased, with year-over-year energy inflation reaching 0.48 percent, up 0.65 percentage points from the prior reading. Energy prices can shift quickly due to changes in global supply, geopolitical developments, and seasonal demand.
Regionally, inflation rates varied across the country but declined from January to February in each region measured by the report. Inflation was highest in the Midwest at 2.8 percent, followed by the Northeast and West at 2.7 percent each, while the South recorded the lowest rate at 1.8 percent.
Regional CPI comparisons reflect differences in housing costs, transportation expenses, energy prices, and local economic conditions that influence consumer spending patterns across the country.
The report also found that wages increased when adjusted for inflation.
Real weekly earnings for all employees rose 1.67 percent year over year, representing a 0.98 percentage point increase from the previous reading. Real hourly earnings increased 1.42 percent year over year, a 0.16 percentage point increase.
The Consumer Price Index, compiled by the U.S. Bureau of Labor Statistics, tracks price changes across a basket of goods and services commonly purchased by households, including housing, food, transportation, medical care, and other everyday expenses.
The index is widely used by policymakers, businesses, and economists to measure inflation trends, evaluate purchasing power, and guide economic policy decisions.
Arizona residents experience many of the same price trends reflected in national CPI data, including changes in food, energy, and consumer goods prices that affect household budgets across the state.
The full February inflation report is available from the Joint Economic Committee here.
Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.
by Ethan Faverino | Mar 10, 2026 | Economy, News
By Ethan Faverino |
The U.S. labor market experienced a sharp downturn in February 2026, with nonfarm payroll employment declining by 92,000 jobs, according to the latest Employment Situation report from the Bureau of Labor Statistics, released March 6. This marked a significant reversal of January’s stronger-than-expected performance and fell well short of economists’ consensus forecasts for modest gains.
The Joint Economic Committee highlighted the figures in its Monthly Employment Update, noting that the decline consisted of -86,000 jobs in the private sector and -6,000 in government.
The headline unemployment rate (U-3) rose 0.1% to 4.4% while the broader U-6 measure—which includes underemployed workers—improved slightly, falling 0.2% to 7.9%. The labor force participation rate dipped 0.1% to 62%, and the employment-to-population ratio decreased to 59.3%.
Significant downward revisions to prior months compounded the weaker outlook. December 2025 was revised to show a net loss of 17,000 jobs (from an initial gain of 45,000), and January 2026 was adjusted down by 4,000 to 126,000 jobs. Combined, these revisions reduced reported employment gains for December and January by 69,000 jobs.
Sector performance in February showed mixed results. Gains were led by financial activities (+10,000 jobs) and other services (+8,000 jobs). Losses were concentrated in private education and health services (-34,000 jobs, influenced by strike activity in health care) and leisure and hospitality (-27,000 jobs).
On a year-over-year basis (February 2025 to February 2026), total nonfarm payroll rose by approximately 156,000 jobs, with strong contributions from private education and health services (+658,000) and leisure and hospitality (+126,000). However, notable declines occurred in federal government (-314,000) and trade, transportation, and utilities (-191,000).
Wage growth remained positive amid the slowdown. For all private non-farm employees, average hourly earnings increased 3.84% year-over-year to $37.32, while average weekly earnings rose 4.14% to $1,280.08. Among production and nonsupervisory employees, hourly earnings grew 3.69% to $32.03, and weekly earnings advanced 4.31% to $1,082.61.
The latest Job Openings and Labor Turnover Survey data (for December 2025) indicated cooling demand, with nonfarm job openings falling by 386,000 to 6.54 million. Hires rose by 172,000 to 5.29 million, while separations increased by 107,000 to 5.25 million, including modest gains in quits and larger rises in layoffs and discharges.
The data points to emerging softness in the labor market, influenced by temporary factors including the severe winter weather and significant strike activity in health care, though broader indicators like wage growth and a still-low unemployment rate suggest resilience.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 27, 2026 | Economy, News
By Ethan Faverino |
In response to the U.S. Supreme Court’s February decision in Learning Resources, Inc. v. Trump, which held that the International Emergency Powers Act (IEEPA) does not authorize the President to impose tariffs, Joint Economic Committee (JEC) Chairman David Schweikert (AZ-01) issued a statement encouraging a shift toward a more stable and growth-oriented tax framework.
In a 6-3 ruling, the Supreme Court invalidated sweeping tariffs imposed under IEEPA, concluding that the statute does not grant the executive branch authority to levy import duties. The Court reaffirmed that Congress holds constitutional authority over tariffs and taxation, rejecting arguments that IEEPA’s provisions governing economic measures during national emergencies extend to imposing duties.
Chairman Schweikert emphasized the broader implications for America’s tax system amid rising federal spending. “As our nation’s spending continues to grow, we must be honest about the math,” he stated. “To sustain essential programs and protect our fiscal health, we need a tax system that produces stable, predictable receipts without stifling growth. Today’s ruling underscores the uncertainty in our current tax framework, uncertainty that limits investment, hiring, and innovation.”
Schweikert advocated for transitioning to a border-adjusted, destination-based cash flow tax (DBCFT) as a superior alternative to tariffs for promoting domestic production and economic competitiveness. “To bring greater stability and competitiveness to our economy, and address tax arbitrage arising from other countries’ tax policies, I believe the U.S. should move toward a border-adjusted, destination-based cash flow tax. In line with the goals of tariffs, a DBCFT supports U.S.-based production and American workers. But tariffs distort markets and reduce overall output. A destination-based cash flow tax achieves these same objectives through a more economically rational, growth-oriented framework.”
He highlighted key advantages of the DBCFT, including immediate deductions for business investments to encourage reinvestment and growth, taxation based on where goods are consumed rather than where they are produced, and border adjustments that tax imports while exempting exports.
This approach, Schweikert noted, discourages offshoring, provides businesses with predictability for long-term planning, and helps ensure stable tax revenues to support increasing federal expenditures.
“I will be holding a hearing on this important topic in the coming weeks,” he added. “America’s long-term prosperity hinges on our ability to keep U.S. companies competitive both at home and globally. A destination-based cash flow tax strengthens that foundation.”
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 18, 2026 | Economy, News
By Ethan Faverino |
The Joint Economic Committee released its Monthly Inflation Update for January 2026 last week, highlighting a modest cooling in consumer price pressures as headline inflation declined below expectations.
According to data from the Bureau of Labor Statistics (BLS), the Consumer Price Index for All Urban Consumers (CPI-U) rose 2.39% year-over-year in January, down from 2.68% in December 2025. This marks a continued easing trend and comes in slightly below Cleveland Federal Reserve’s forecast of 2.36%.
Core CPI-U, which excludes volatile food and energy components, increased 2.50% over the same period, compared to 2.64% the prior month. Month-over-month, headline CPI-U advanced 0.17% from December to January, while core CPI-U rose 0.30%.
Key drivers included a sharp decline in energy prices, which fell -1.47% month-over-month and -0.14% year-over-year, a drop of 2.44 percentage points from December’s year-over-year figure. Food prices, meanwhile, increased 0.19% monthly and 2.88% annually, up 0.38 percentage points from the previous year.
Inflation continued to ease across all regions in January 2026, though rates varied geographically. The Northeast posted the highest inflation at 2.8%, followed by the West at 2.7% and the Midwest at 2.4%, while the South recorded the lowest rate at 1.9%. Each region experienced a decline from December levels.
The report also highlighted positive developments in workers’ purchasing power. Real average weekly earnings for all employees on private nonfarm payrolls rose 0.53% from December to January and climbed 1.88% year-over-year. Real average hourly earnings increased 0.26% monthly and 1.25% annually. For production and nonsupervisory employees, real weekly earnings grew even more robustly at 2.16% year-over-year.
These gains reflect wages outpacing inflation, providing American workers with improved real income amid moderating price pressures.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
by Ethan Faverino | Feb 3, 2026 | Economy, News
By Ethan Faverino |
According to the Joint Economic Committee, the United States recorded a total trade deficit of $56.82 billion in November 2025. This figure represented a substantial monthly increase of $27.62 billion from the revised October level, reflecting a sharp widening in the shortfall.
Despite the month-over-month surge, the November deficit stood 27% below the 12-month average, indicating that the broader trend continued to show improvement relative to recent periods.
The rise in the overall deficit was driven largely by developments in goods trade, where the shortfall expanded significantly. The goods trade deficit reached $86.90 billion in November, up $27.92 billion from October, and remained 18% below the 12- month average.
In contrast, the services sector provided a counterbalance, posting a surplus of $30.08 billion. This service surplus rose modestly by $298 million from the previous month and stood 7% above the 12-month average.
Total exports for November declined to $292.05 billion, down $10.87 billion from October, though the figure remained 3% above the 12-month average. Goods exports fell to $185.64 billion, reflecting a decrease of $11.10 billion month-over-month, while services exports edged higher to $106.41 billion, up $237 million.
On the import side, total imports climbed to $348.88 billion, an increase of $16.75 billion from October, yet levels are still 4% below the 12-month average. Goods imports rose to $272.54 billion, up $16.81 billion, while services imports dipped slightly to $76.34 billion, down $61 million.
Compared with November 2024, the November 2025 trade deficit showed improvement, narrowing by 28.75% to $79.75 billion. Exports grew 5.88% year-over-year, while imports declined 1.89% over the same period.
Over the rolling 12 months through November 2025, the cumulative total trade deficit stood at $936.45 billion. This reflected a goods trade deficit of $1.27 trillion, partially offset by a services surplus of $335.80 billion. Total exports during this period reached $3.42 trillion, with goods accounting for $2.19 trillion and services $1.23 trillion. Total imports amounted to $4.35 trillion, including $3.46 trillion in goods and $892.72 billion in services.
Among major trading partners, the largest goods trade deficits over the 12-month period occurred with China, with net exports of -$214.61 billion (representing 17.12% of the total goods deficit), Mexico at -$197.36 billion (15.74%), and Vietnam at -$171.62 billion (13.69%).
The U.S. recorded its largest goods trade surpluses with the Netherlands ($59.99 billion), the United Kingdom ($30.39 billion), and Hong Kong ($26.89 billion).
The leading export destinations were Mexico ($334.37 billion), Canada ($331.25 billion), and China ($110.22 billion), which together counted for 35.84% of total U.S. exports. Oppositely, the top sources were Mexico ($531.73 billion), Canada ($386.75 billion), and China ($324.83 billion), comprising 36.37% of all U.S. imports.
Year-over-year price inflation for exports was 3.29%, with agricultural exports rising 2.64% and non-agricultural exports increasing 3.29%. Import price inflation was notably higher at 7.58% overall, driven by an 8.25% increase in non-fuel imports, while fuel prices declined 1.72%.
Exchange rate movements between November 2024 and November 2025 showed the U.S. dollar weakening against the Chinese yuan 2.7%, the euro 9.6%, the British pound 4.5%, and the Mexican peso 10.5% while strengthening against the Japanese yen 4.6%.
Ethan Faverino is a reporter for AZ Free News. You can send him news tips using this link.
