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Housing costs push inflation higher for the first time this year on August 10, 2023 at 3:03 pm Business News | The Hill

Published

2 years ago

August 10, 2023

Consumer prices in July ticked up for the first time this year as housing costs and services pushed back against a rapid decline in annual inflation.

Prices in the consumer price index (CPI) rose to a 3.2-percent annual increase in July from 3 percent in June, the largest upward movement since June of last year.

Despite the speed bump on inflation’s year-long descent, the increase was still less than analysts’ expectations at 3.3 percent. The monthly advance of 0.2 percent was exactly in line with what economists had predicted.

“Core” CPI, which removes the harder-to-predict categories of food and energy prices, advanced just 0.2 percent in July – the same small increase as in June – buoying hopes that the U.S. economy can tame inflation without sinking into a recession.

Three-month core CPI is just a hair over the Fed’s 2-percent target range at 3.1 percent and falling, economists noted.

Bright spots in Thursday’s numbers from the Labor Department were faster deflation in core commodity prices along with cheaper eggs, chicken and toys.

SAN ANSELMO, CA – MAY 22: A sale pending sign is posted in front of a home for sale on May 22, 2013 in San Anselmo, California. (Photo by Justin Sullivan/Getty Images)

Housing costs are still a reason for concern, following 11 interest rate hikes by the Federal Reserve, which have hit financing-dependent sectors of the economy particularly hard.

“The index for shelter was by far the largest contributor to the monthly all items increase, accounting for over 90 percent of the increase,” the Labor Department noted.

Here’s a breakdown of the report.

Housing is the Achilles’ heel of falling inflation

Housing and shelter costs are a main driver of core CPI, accounting for around 40 percent of the index that the Federal Reserve pays special attention to in weighing whether to press ahead with rate hikes.

While primary-residence rent fell to a 0.4-percent increase from 0.5 percent in June, the broader measure of owners’ equivalent rent accelerated to a 0.5-percent increase in July after falling the previous month.

This resulted in core service prices increasing 0.4 percent.

“The pick-up in core services inflation to 0.4 percent month-over-month from 0.3 percent in June will be seen by the Fed as grounds for caution,” Brian Coulton, chief economist with Fitch Ratings, said.

“Rents just don’t seem to be slowing by much at all on a month-to-month basis and, given the 34 percent weight of shelter in the CPI, this is significant,” he said.

Automobile costs also drive the upswing

Motor vehicle maintenance and repairs jumped 1 percent on the month and were 12.7 percent higher than they were a year ago, far outpacing the overall disinflationary trend of the past year.

Prices for car repairs taken by themselves were 19.5 percent higher than they were last year, increasing by 1.4 percent from June to July.

Car insurance costs increased 2 percent last month, accounting for a 17.8 percent annual increased.

The Labor Department said that soaring care insurance prices were also contributing to the hot headline number

Deflation in core goods accelerates

Meanwhile, commodity prices were headed in the opposite direction, with deflation in core commodities getting faster.

Removing the food and energy categories, commodity prices fell by 0.3 percent in July, down from 0.1 percent in June.

Household furnishings and supplies were down, furniture and bedding prices were cheaper, and major appliance prices were down, as well.

“This is likely to continue with the distress in China and other exporters seeking market share. It will be a very tough competitive environment out there now,” Westwood Capital managing partner Dan Alpert wrote online Thursday.

Nursing homes grow more expensive

Prices for nursing homes and elder care facilities rose 2.4 percent in July and were up more than 5.6 on the year – another services sector that is bucking the trend of falling inflation.

Costs for caring for people who cannot take care of themselves rose a half-percent on the month and 4.7 percent on the year.

Inflation is now a referendum on housing costs

As the Labor Department noted, the inflation story for July is all about housing costs, with the vast majority of the headline increase coming from shelter, the sector perhaps most closely tied with Fed rate hikes.

With deflation accelerating in core commodities and 90 percent of monthly increase attributable to housing prices, the picture of a disaggregated and compartmentalized inflation is coming more fully into relief.

“Look at the sectoral patterns, we have not seen an across-the-board rise in inflation in prices, which is sort of the classic inflation pattern. We’ve seen prices increasing in very specific parts of the economy with different patterns,” economist J.W. Mason of John Jay College in the City University of New York said during an event earlier this year.

The Federal Reserve seems to be aware of these dynamics despite its blanket approach to addressing inflation, which has been exacerbated by outsized profits, through interest rate hikes.

“We have been seeing the effects of our policy tightening on demand in the most interest rate-sensitive sectors of the economy, particularly housing and investment,” Federal Reserve Chairman Jerome Powell said at the end of July, after raising rates for the 11 time.

“Clearly, higher rates have slowed the housing market,” he said.

Business, News, Consumer Price Index, CPI, federal reserve, Federal reserve rate hikes, Housing, inflation, Interest rates, Jerome Powell Consumer prices in July ticked up for the first time this year as housing costs and services pushed back against a rapid decline in annual inflation. Prices in the consumer price index (CPI) rose to a 3.2-percent annual increase in July from 3 percent in June, the largest upward movement since June of last year….

Business

How Trump’s Tariffs Could Hit American Wallets

Published

1 day ago

July 11, 2025

Bolanle Media Staff

As the debate over tariffs heats up ahead of the 2024 election, new analysis reveals that American consumers could face significant financial consequences if former President Donald Trump’s proposed tariffs are enacted and maintained. According to a recent report highlighted by Forbes, the impact could be felt across households, businesses, and the broader U.S. economy.

The Household Cost: Up to $2,400 More Per Year

Research from Yale University’s Budget Lab, cited by Forbes, estimates that the average U.S. household could pay an additional $2,400 in 2025 if the new tariffs take effect and persist. This projection reflects the cumulative impact of all tariffs announced in Trump’s plan.

Price Hikes Across Everyday Goods

The tariffs are expected to drive up consumer prices by 1.8% in the near term. Some of the hardest-hit categories include:

Apparel: Prices could jump 37% in the short term (and 18% long-term).
Footwear: Up 39% short-term (18% long-term).
Metals: Up 43%.
Leather products: Up 39%.
Electrical equipment: Up 26%.
Motor vehicles, electronics, rubber, and plastic products: Up 11–18%.
Groceries: Items like vegetables, fruits, and nuts could rise up to 6%, with additional increases for coffee and orange juice due to specific tariffs on Brazilian imports.

A Historic Tariff Rate and Economic Impact

If fully implemented, the effective tariff rate on U.S. consumers could reach 18%, the highest level since 1934. The broader economic consequences are also notable:

GDP Reduction: The tariffs could reduce U.S. GDP by 0.4% annually, equating to about $110 billion per year.
Revenue vs. Losses: While tariffs are projected to generate $2.2 trillion in revenue over the next decade, this would be offset by $418 billion in negative economic impacts.

How Businesses Are Responding

A KPMG survey cited in the report found that 83% of business leaders expect to raise prices within six months of tariff implementation. More than half say their profit margins are already under pressure, suggesting that consumers will likely bear the brunt of these increased costs.

What This Means for Americans

The findings underscore the potential for substantial financial strain on American families and businesses if Trump’s proposed tariffs are enacted. With consumer prices set to rise and economic growth projected to slow, the debate over tariffs is likely to remain front and center in the months ahead.

For more in-depth economic analysis and updates, stay tuned to Bolanlemedia.com.

Business

U.S. Limits Nigerian Non-Immigrant Visas to Three-Month Validity

Published

3 days ago

July 9, 2025

Bolanle Media Staff

In July 2025, the United States implemented significant changes to its visa policy for Nigerian citizens, restricting most non-immigrant and non-diplomatic visas to a single entry and a maximum validity of three months. This marks a departure from previous policies that allowed for multiple entries and longer stays, and has important implications for travel, business, and diplomatic relations between the two countries.

Key Changes in U.S. Visa Policy for Nigerians

Single-Entry, Three-Month Limit: As of July 8, 2025, most non-immigrant visas issued to Nigerians are now valid for only one entry and up to three months.
No Retroactive Impact: Visas issued prior to this date remain valid under their original terms.
Reciprocity Principle: The U.S. cited alignment with Nigeria’s own visa policies for U.S. citizens as the basis for these changes.
Enhanced Security Screening: Applicants are required to make their social media accounts public for vetting, and are subject to increased scrutiny for any signs of hostility toward U.S. institutions.

Rationale Behind the Policy Shift

Security and Immigration Integrity: The U.S. government stated the changes are intended to safeguard the immigration system and meet global security standards.
Diplomatic Reciprocity: These restrictions mirror the limitations Nigeria imposes on U.S. travelers, emphasizing the principle of fairness in international visa agreements.
Potential for Further Action: The U.S. has indicated that additional travel restrictions could be introduced if Nigeria does not address certain diplomatic and security concerns.

Nigeria’s Updated Visa Policy

Nigeria Visa Policy 2025 (NVP 2025): Introduced in May 2025, this policy features a new e-Visa system for short visits and reorganizes visa categories:
- Short Visit Visas (e-Visa): For business or tourism, valid up to three months, non-renewable, processed digitally within 48 hours.
- Temporary Residence Visas: For employment or study, valid up to two years.
- Permanent Residence Visas: For investors, retirees, and highly skilled individuals.
Visa Exemptions: ECOWAS citizens and certain diplomatic passport holders remain exempt.
Reciprocal Restrictions: Most short-stay and business visas for U.S. citizens are single-entry and short-term, reflecting reciprocal treatment.

Impact on Travelers and Bilateral Relations

Nigerian Travelers: Face increased administrative requirements, higher costs, and reduced travel flexibility to the U.S.
U.S. Travelers to Nigeria: Encounter similar restrictions, with most visas limited to single entry and short duration.
Diplomatic Tensions: Nigerian officials have called for reconsideration of the U.S. policy, warning of negative effects on bilateral ties and people-to-people exchanges.

Conclusion

The U.S. decision to limit Nigerian non-immigrant visas to three months highlights the growing complexity and reciprocity in global visa regimes. Both countries are tightening their policies, citing security and fairness, which underscores the need for travelers and businesses to stay informed and adapt to evolving requirements.

Business

Nicki Minaj Demands $200 Million from Jay-Z in Explosive Twitter Rant

Published

3 days ago

July 9, 2025

Bolanle Media Staff

Nicki Minaj has once again set social media ablaze, this time targeting Jay-Z with a series of pointed tweets that allege he owes her an eye-popping $200 million. The outburst has reignited debates about artist compensation, industry transparency, and the ongoing power struggles within hip-hop’s elite circles.

The $200 Million Claim

In a string of tweets, Minaj directly addressed Jay-Z, writing, “Jay-Z, call me to settle the karmic debt. It’s only collecting more interest. You still in my top five though. Let’s get it.” She went further, warning, “Anyone still calling him Hov will answer to God for the blasphemy.” According to Minaj, the alleged debt stems from Jay-Z’s sale of Tidal, the music streaming platform he launched in 2015 with a group of high-profile artists—including Minaj herself, J. Cole, and Rihanna.

When Jay-Z sold Tidal in 2021, Minaj claims she was only offered $1 million, a figure she says falls dramatically short of what she believes she is owed based on her ownership stake and contributions. She has long voiced dissatisfaction with the payout, but this is the most public—and dramatic—demand to date.

Beyond the Money: Broader Grievances

Minaj’s Twitter storm wasn’t limited to financial complaints. She also:

Promised to start a college fund for her fans if she receives the money she claims is owed.
Accused blogs and online creators of ignoring her side of the story, especially when it involves Jay-Z.
Warned content creators about posting “hate or lies,” saying, “They won’t cover your legal fees… I hope it’s worth losing everything including your account.”

She expressed frustration that mainstream blogs and platforms don’t fully cover her statements, especially when they involve Jay-Z, and suggested that much of the coverage she receives is from less reputable sources.

Satirical Accusations and Industry Critique

Minaj’s tweets took a satirical turn as she jokingly blamed Jay-Z for a laundry list of cultural grievances, including:

The state of hip-hop, football, basketball, and touring
The decline of Instagram and Twitter
Even processed foods and artificial dyes in candy

She repeatedly declared, “The jig is up,” but clarified that her statements were “alleged and for entertainment purposes only.”

Political and Cultural Criticism

Minaj also criticized Jay-Z’s political involvement, questioning why he didn’t campaign more actively for Kamala Harris or respond to President Obama’s comments about Black men. While Jay-Z has a history of supporting Democratic campaigns, Minaj’s critique centered on more recent events and what she perceives as a lack of advocacy for the Black community.

The Super Bowl and Lil Wayne

Adding another layer to her grievances, Minaj voiced disappointment that Lil Wayne was not chosen to perform at the Super Bowl in New Orleans, a decision she attributes to Jay-Z’s influence in the entertainment industry.

Public and Industry Reaction

Despite the seriousness of her financial claim, many observers note that if Minaj truly believed Jay-Z owed her $200 million, legal action—not social media—would likely follow. As of now, there is no public record of a lawsuit or formal complaint.

Some fans and commentators see Minaj’s outburst as part of a larger pattern of airing industry grievances online, while others interpret it as a mix of personal frustration and performance art. Minaj herself emphasized that her tweets were “for entertainment purposes only.”

Conclusion

Nicki Minaj’s explosive Twitter rant against Jay-Z has once again placed the spotlight on issues of artist compensation and industry dynamics. Whether her claims will lead to further action or remain another dramatic chapter in hip-hop’s ongoing soap opera remains to be seen, but for now, the world is watching—and tweeting.