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What to know about the August inflation spike on September 13, 2023 at 7:15 pm Business News | The Hill

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The final inflation report of the summer came in hotter than expected, but prices still seem on track to keep cooling off in the fall.

Consumer prices rose 0.6 percent in August and 3.7 percent over the past 12 months, according to Consumer Price Index (CPI) data released Wednesday. 

The August report marked the second straight month of faster price growth and exposed some potential hotspots in the economy. Even so, experts expect the Federal Reserve to look past the slight spike in inflation and keep interest rates unchanged at an upcoming policy meeting.

“This report will comfort data-dependent Fed policymakers as they gradually move away from a ‘tighten at all costs’ paradigm to a more conditional ‘tighten if surprised’ paradigm,” wrote Gregory Daco, chief economist at EY, in a Wednesday analysis.

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Here are four things to know about the August inflation report.

Gas and transportation squeezed consumers

Summer often brings higher energy prices as Americans travel for vacation and lean on their air conditioning to stay cool. That’s why economists were not surprised to see an August surge in gas prices boost overall inflation.

The 10.6-percent jump in gas prices last month was responsible for more than half of the August increase in inflation, the Labor Department said. Energy prices on the whole were up 5.6 percent in August, though electricity prices rose just 0.2 percent.

“For consumers, the most immediate impact of August price changes are being felt at the pump. Because of this, disconnect between what overall inflation is actually doing and how people are perceiving it will continue,” explained NerdWallet data analyst Elizabeth Renter in a Wednesday analysis.

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Prices for transportation services also jumped 2 percent as companies compensated for  higher gas prices and demand. Airline fares rose 4.9 percent last month alone and auto insurance costs rose 2.4 percent on the month.

“Energy price inflation has been the key driver of the post-pandemic inflation flareup, spilling over into transportation and commodities most directly, and pulling everything else up with it,” said Julia Pollak, chief economist at ZipRecruiter, in a Wednesday analysis.

Housing costs are still a problem

Stubborly high rents and housing prices have be a major force behind inflation throughout the recovery from the pandemic-induced recession. 

Shelter costs rose for the 40th consecutive month in August, rising 0.3 percent last month and and a whopping 7.3 percent over the past year. Rents were up 7.8 percent on the year and 0.3 percent last month, putting further pressure on inflation.

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Roughly one-third of the CPI is driven by shelter costs, which makes overall inflation very sensitive to movements in rents and home prices. Experts, however, see reason for optimism in the August shelter numbers.

The monthly increase in shelter costs was the smallest since 2021 and a raft of private-sector data shows rents and home prices rising at a slower rate, said Bill Adams, chief economist at Comerica Bank.

He added that the CPI is often several months behind private-sector price data and expected “a big wave of multifamily housing under construction” to help bring around lower rents next year.

‘Core’ goods are getting cheaper

Americans are finally starting to see basic household goods get cheaper after years of bracing at the cash register.

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Prices for goods excluding food and energy fell 0.1 percent in August. The Fed pays close attention to prices for so-called “core” goods and services outside of the volatile food and energy sectors.

While food is excluded from core inflation readings, Americans also saw prices for groceries rise at a much slower pace.

“One bright spot is an easing of price pressures in food costs. Costs for food at home – a staple household expense – were up just 0.2 percent in August and even the pesky increases in costs for food away from home came in at a more temperate 0.3 percent for the month,” said Bankrate chief financial analyst Greg McBride.

The inflation fight is far from over

The August CPI report was a stark reminder of how hard it can be to bring down high inflation.

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“After easing since last summer, energy prices spiked again in August, reigniting inflation and throwing the prospects of a September pause in interest rate hikes, and soft landing, into doubt,” Pollak wrote.

“The spike in energy costs also squeezes household budgets and reduces real wage growth, which could contribute to wage growth pressures in the coming months.”

The Fed is aiming to bring annual inflation back down to its target of 2 percent without slowing the economy into a recession. After boosting interest rates to a 22-year high in July, central bank officials are hoping that just one or two more hikes will be enough to quash inflation.

“Even though the overall path of inflation – including the core measures preferred by the Fed – has been downward, inflation may not be low enough now for the Fed to be comfortable with a pause,” wrote Daniel Altman, chief economist at Instawork, in an analysis.

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“The slackening of the labor market is picking up speed, however, raising the potential for a crash landing (with higher unemployment) rather than a soft landing.”

Job growth has slowed toward pre-pandemic levels and the unemployment rate jumped to 3.8 percent in August, though this was due mainly to an influx of workers. The slowdown in the job market has alarmed progressive economists, who have been concerned that the Fed will drive the U.S. into a needless recession.

The Fed “can’t make homes more affordable or control oil prices by kicking workers out of their jobs. If we care about the cost of living, we need to focus on investing in people and families,” said Kitty Richards, acting executive director of the progressive nonprofit Groundwork Collaborative.

​Business, Economy The final inflation report of the summer came in hotter than expected, but prices still seem on track to keep cooling off in the fall. Consumer prices rose 0.6 percent in August and 3.7 percent over the past 12 months, according to Consumer Price Index (CPI) data released Wednesday. The August report marked the second…  

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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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