CASPER, Wyo. — For Casper’s small business owners, high inflation is not a single-point problem, but a cascade of cost and demand challenges.
Fashion Crossroads in downtown Casper is a local retail landmark, celebrating its 50th anniversary in business this summer. During that time, the women’s clothing and accessories store weathered many adversities. But today’s persistent inflation has owner Kyleen Stevenson-Braxton worried about the future.
“The tricky part hasn’t been the product price increases as much as it’s been the product prices plus staffing increases, plus energy, plus rent increases,” she said. “It’s really coming at us from all directions.”
This comes against a backdrop when even national brands close stores or file for bankruptcy.
Consumers also are less willing to spend. During Casper’s recent “Crazy Days” event, customers “weren’t even looking at anything unless it was 80 percent off. And that’s not the way it typically is,” Kyleen said.
Johnny J’s Diner faces similar obstacles. Owner Pat White offers specials according to deals she finds through her vendors, and by comparing prices posted by various vendors. “I have had to get creative,” she said.
Customers also watch for deals and cut corners. “I see more people ordering water instead of a beverage,” she noted.
During the summer, the restaurant runs a weekly buy-one-get-one-free milkshake special. On a recent day, Johnny J’s Diner sold 304 shakes. Once inside, the hope is customers will also buy an order of french fries or perhaps a full meal.
Johnny J’s Diner is experiencing a seasonal spike in business associated with tourism. But Pat also is looking ahead. She will add DoorDash service this winter to create additional revenue and to ensure staff can be paid without cutting hours.
“We’re all in this together,” Pat said. “We are very blessed to have the customer base that we do.”
For most people, owning a vehicle is a necessity. But when a mechanical breakdown occurs, many people cannot afford to buy something new. Instead, drivers opt to repair what they have.
“Due to interest rates and prices of new cars, people are tending to repair their older vehicles to keep them on the road longer,” said Jason Leung, owner of Horizon Automotive.
At the beginning of August, Jason said his shop was already booked about three weeks out. And it isn’t just at his business, but at repair shops all over town, he added.
Jason estimated that the price of parts has increased by a minimum of 25% over the past few years. While supply chain issues are no longer major problems, he does not foresee the price of parts declining anytime soon.
The most recent inflation report produced by the state Economic Analysis Division indicates the Wyoming Cost of Living Index increased by 3.8% in the fourth quarter of 2023 compared to a year earlier. That was the lowest annual rate since the fourth quarter of 2020.
Inflation peaked in the second quarter of 2022 at 10.1%. “That was the highest since the third quarter of 1981,” according to Principal Economist Amy Bittner.
But, the impacts of inflation are cumulative. “When you hear on the news that inflation is going down it just means it’s not increasing as much as it was,” she said. “That doesn’t mean prices are decreasing.”
Indeed, using the U.S. Bureau of Labor Statistics CPI inflation calculator indicates that $100 in June 2020 had the same buying power as $121.87 in June 2024.
Statewide inflation by category in the fourth quarter of 2023 was 5.3% in recreation and personal care, 4.2% in housing, 4.1% in medical, 3.8% in food, 3% in apparel, and 2.2% in transportation.
By region, inflation rose 5.1% in the northwest, 5% in the southwest, 4.1% in the northeast, 3.3% in the southeast, and 2.7% in the central region, including Casper.
Nationally, the Federal Reserve has set a target of 2% inflation.
“The Federal Open Market Committee (FOMC) judges that inflation of 2 percent over the longer run, as measured by the annual change in the price index for personal consumption expenditures, is most consistent with the Federal Reserve’s mandate for maximum employment and price stability,” according to a Fed statement.