by Bill Conerly
Forbes
Consumer inflation is declining, but business costs are a different story, challenging many companies. A little relief is in the cards, but not enough to compensate for smaller increases in product prices. Most businesses will need productivity growth to protect their profit.
Labor Costs
Labor is the largest cost for many organizations. Average hourly earnings over the last 12 months rose four percent, down from a peak of seven percent recorded early in 2022. That four percent inflation rate has been stable in recent months. Benefits cost data are only available through the first quarter and show 3.5 percent rate of increase. That was down from a year earlier.