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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

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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. 

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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.

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“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.

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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.

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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.

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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.

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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.

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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….  

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Why 9 Million Americans Have Left

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The Growing American Exodus

Nearly 9 million Americans now live outside the United States—a number that rivals the population of several states and signals a profound shift in how people view the American dream. This mass migration isn’t confined to retirees or the wealthy. Thanks to remote work, digital nomad visas, and mounting pressures at home, young professionals, families, and business owners are increasingly joining the ranks of expats.

Rising Costs and Shrinking Wallets

Living in the US has become increasingly expensive. Weekly grocery bills topping $300 are not uncommon, and everyday items like coffee and beef have surged in price over the last year. Rent, utilities, and other essentials also continue to climb, leaving many Americans to cut meals or put off purchases just to make ends meet. In contrast, life in countries like Mexico or Costa Rica often costs just 50–60% of what it does in the US—without sacrificing comfort or quality.

Health Care Concerns Drive Migration

America’s health care system is a major trigger for relocation. Despite the fact that the US spends more per person on health care than any other country, millions struggle to access affordable treatment. Over half of Americans admit to delaying medical care due to cost, with households earning below $40,000 seeing this rate jump to 63%. Many expats point to countries such as Spain or Thailand, where health care is both affordable and accessible, as a major draw.

Seeking Safety Abroad

Public safety issues—especially violent crime and gun-related incidents—have made many Americans feel unsafe, even in their own communities. The 2024 Global Peace Index documents a decline in North America’s safety ratings, while families in major cities often prioritize teaching their children to avoid gun violence over simple street safety. In many overseas destinations, newly arrived American families report a significant improvement in their sense of security and peace of mind.

Tax Burdens and Bureaucracy

US tax laws extend abroad, requiring expats to file annual returns and comply with complicated rules through acts such as FATCA. For some, the burden of global tax compliance is so great that thousands relinquish their US citizenship each year simply to escape the paperwork and scrutiny.

The Digital Nomad Revolution

Remote work has unlocked new pathways for Americans. Over a quarter of all paid workdays in the US are now fully remote, and more than 40 countries offer digital nomad visas for foreign professionals. Many Americans are leveraging this opportunity to maintain their US incomes while cutting costs and upgrading their quality of life abroad.

Conclusion: Redefining the Dream

The mass departure of nearly 9 million Americans reveals deep cracks in what was once considered the land of opportunity. Escalating costs, inaccessible healthcare, safety concerns, and relentless bureaucracy have spurred a global search for better options. For millions, the modern American dream is no longer tied to a white-picket fence, but found in newfound freedom beyond America’s borders.

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Will Theaters Crush Streaming in Hollywood’s Next Act?

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Hollywood is bracing for a pivotal comeback, and for movie lovers, it’s the kind of shake-up that could redefine the very culture of cinema. With the freshly merged Paramount-Skydance shaking up its strategy, CEO David Ellison’s announcement doesn’t just signal a change—it reignites the passion for moviegoing that built the magic of Hollywood in the first place.

Theatrical Experience Roars Back

Fans and insiders alike have felt the itch for more event movies. For years, streaming promised endless options, but fragmented attention left many longing for communal spectacle. Now, with Paramount-Skydance tripling its film output for the big screen, it’s clear: studio leaders believe there’s no substitute for the lights, the hush before the opening credits, and the collective thrill of reacting to Hollywood’s latest blockbusters. Ellison’s pivot away from streaming exclusives taps deep into what unites cinephiles—the lived experience of cinema as art and event, not just content.

Industry Pulse: From Crisis to Renaissance

On the financial front, the numbers are as electrifying as any plot twist. After years of doubt, the box office is roaring. AMC, the world’s largest theater chain, reports a staggering 26% spike in moviegoer attendance and 36% revenue growth in Q2 2025. That kind of momentum hasn’t been seen since the heyday of summer tentpoles—and it’s not just about more tickets sold. AMC’s strategy—premium screens, with IMAX and Dolby Cinema, curated concessions, and branded collectibles—has turned every new release into an event, driving per-customer profits up nearly 50% compared to pre-pandemic norms.

Blockbusters Lead the Culture

Forget the gloom of endless streaming drops; when films like Top Gun: Maverick, Mission: Impossible, Minecraft, and surprise hits like Weapons and Freakier Friday draw crowds, the industry—and movie fans—sit up and take notice. Movie-themed collectibles and concession innovations, from Barbie’s iconic pink car popcorn holders to anniversary tie-ins, have made each screening a moment worth remembering, blending nostalgia and discovery. The focus: high-impact, shared audience experiences that streaming can’t replicate.

Streaming’s Limits and Studio Strategy

Yes, streaming is still surging, but the tide may be turning. The biggest franchises, and the biggest cultural events, happen when audiences come together for a theatrical release. Paramount-Skydance’s shift signals to rivals that premium storytelling and box office spectacle are again at the center of Hollywood value creation. The result is not just higher profits for exhibitors like AMC, but a rebirth of movie-going as the ultimate destination for fans hungry for connection and cinematic adventure.

Future Forecast: Culture, Community, and Blockbuster Dreams

As PwC and others warn that box office totals may take years to fully catch up, movie lovers and industry leaders alike are betting that exclusive theatrical runs, enhanced viewing experiences, and fan-driven engagement are the ingredients for long-term recovery—and a new golden age. The Paramount-Skydance play is more than a business move; it’s a rallying cry for the art of the theatrical event. Expect more big bets, more surprises, and—finally—a long-overdue renaissance for the silver screen.

For those who believe in the power of cinema, it’s a thrilling second act—and the best seat in the house might be front and center once again.

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Why Are Influencers Getting $7K to Post About Israel?

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Influencers are being paid as much as $7,000 per post by the Israeli government as part of an expansive and sophisticated digital propaganda campaign. This effort is designed to influence global public opinion—especially among younger social media users—about Israel’s actions in Gaza and to counter critical narratives about the ongoing humanitarian situation.

How Much Is Being Spent?

Recent reports confirm that Israel has dedicated more than $40 million this year to social media and digital influence campaigns, targeting popular platforms such as TikTok, YouTube, and Instagram. In addition to direct influencer payments, Israel is investing tens of millions more in paid ads, search engine placements, and contracts with major tech companies like Google and Meta to push pro-Israel content and challenge critical coverage of issues like the famine in Gaza.

What’s the Strategy?

  • Influencer Contracts: Influencers are recruited—often with all-expenses-paid trips to Israel, highly managed experiences, and direct payments—to post content that improves Israel’s image.
  • Ad Campaigns: State-backed ad buys show lively Gaza markets and restaurants to counter global reports of famine and humanitarian crisis.
  • Narrative Management: These posts and ads often avoid overt propaganda. Instead, they use personal stories, emotional appeals, and “behind the scenes” glimpses intended to humanize Israel’s side of the conflict and create doubt about reports by the UN and humanitarian agencies.
  • Amplification: Paid content is strategically promoted so it dominates news feeds and is picked up by news aggregators, Wikipedia editors, and even AI systems that rely on “trusted” digital sources.

Why Is This Happening Now?

The humanitarian situation in Gaza has generated increasing international criticism, especially after the UN classified parts of Gaza as experiencing famine. In this environment, digital public relations has become a primary front in Israel’s efforts to defend its policies and limit diplomatic fallout. By investing in social media influencers, Israel is adapting old-school propaganda strategies (“Hasbara”) to the era of algorithms and youth-driven content.

Why Does It Matter?

This campaign represents a major blurring of the lines between paid promotion, journalism, and activism. When governments pay high-profile influencers to shape social media narratives, it becomes harder for audiences—especially young people—to distinguish between authentic perspectives and sponsored messaging.

As user trust in mainstream news decreases and social media’s power grows, understanding how digital influence operations work is critical for anyone who wants to stay informed and think critically about global events.


In short: Influencers are getting $7,000 per post because Israel is prioritizing social media as a battleground for public opinion, investing millions in shaping what global audiences see, hear, and believe about Gaza and the conflict.

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