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Inflation cooled in June to slowest pace in more than 2 years
Inflation dipped in June to its slowest pace in more than 2 years, indicating price increases are cooling amid the Federal Reserve’s rate-hiking regime.
The Consumer Price Index grew at an annual rate of 3%, the Labor Department said on Wednesday. Economists had expected a 3.1% increase, according to FactSet. The increase was the smallest since March 2021, the Labor Department noted. On a monthly basis, inflation rose 0.2%.
Core inflation, which strips out volatile food and energy prices, rose 4.8% on an annual basis. Economists focus more on “core” inflation as it presents a truer gauge of price increases.
Inflation has cooled since hitting its highest levels in four decades last year, partly in the face of higher interest rates engineered by the Federal Reserve, which have made it more expensive for consumers and businesses to borrow money. Yet prices — especially core inflation — are still rising at a pace that’s higher than the Fed’s target of 2%, and the central bank has indicated that additional interest rate increases could be in store.
“Despite the positive inflation report, the Fed likely will resume its rate hikes when it meets later this month, remaining committed to raising interest rates until the magical 2% inflation target is met,” noted Bright MLS chief economist Lisa Sturtevant in an email after the data was released. “The problem is that housing costs, which account for a large share of the inflation picture, are not coming down meaningfully.”
Housing costs were the largest contributor to June’s rise in prices, the Labor Department said. Shelter costs rose 7.8% compared with a year earlier, outpacing the increases for food and new vehicles, which rose 5.7% and 4.1%, respectively.
What’s falling in price: Used cars, eggs
Some economists have suggested, though, that if inflation keeps slowing and the economy shows sufficient signs of cooling, the July increase could be the Fed’s last.
Used-car prices, for example, have been falling, with costs dropping 5.2% in June. Automakers are finally producing more cars as supply shortages have abated. New-car prices, too, have begun to ease as a result.
A sustained slowdown in inflation could bring meaningful relief to American households that have been squeezed by the price acceleration that began two years ago. Inflation spiked as consumers ramped up their spending on items like exercise bikes, standing desks and new patio furniture, fueled by three rounds of stimulus checks. The jump in consumer demand overwhelmed supply chains and ignited inflation.
Many economists have suggested that President Joe Biden’s stimulus package in March 2021 intensified the inflation surge. At the same time, though, inflation also jumped overseas, even in countries where much less stimulus was put in place. Russia’s invasion of Ukraine also triggered a spike in energy and food prices globally.
Now, though, gas prices have fallen back to about $3.50 a gallon on average, nationally, down from a $5 peak last year. And grocery prices are rising more slowly, with some categories reversing previous spikes.
Egg prices, for instance, have declined to a national average of $2.67 a dozen, down from a peak of $4.82 at the start of this year, according to government data. Egg costs had soared after avian flu decimated the nation’s chicken flocks. Despite the decline, they remain above the average pre-pandemic price of about $1.60. Milk and ground beef remain elevated but have eased from their peak prices.
Still, the cost of services, like restaurant meals, car insurance, child care and dental services, continue to rise rapidly. Auto insurance, on average, now costs 17% more than it did a year ago.
—With reporting by the Associated Press.
NEW WINDSOR, N.Y. — Drone activity forced runways at New York’s Stewart Airfield to shut down Friday night, according to Gov. Kathy Hochul.
“Last night, the runways at Stewart Airfield were shut down for approximately one hour due to drone activity in the airspace. This has gone too far,” Hochul said in a statement released Saturday morning.
Hochul’s statement echoes a growing frustration among Tri-State Area lawmakers demanding answers from the federal government about the drones’ origins amid numerous reports of them flying over New York, New Jersey and Connecticut.
White House officials have deemed suspected threats from the drones to be “not credible” and said many sightings are likely just of planes.
Growing frustration with drones
Local officials have expressed angst over the federal response, especially after drones were reported over New York City.
“The people of Staten Island deserve answers, and the people of this city and state and region deserve answers of what the heck is going on,” Staten Island Borough President Vito Fossella said.
Hochul’s statement Saturday also called on federal lawmakers to pass a law strengthening the Federal Aviation Administration’s oversight of drones:
“In mid-November, I directed the New York State Intelligence Center to actively investigate drone sightings and coordinate with federal law enforcement to address this issue, and those efforts are ongoing. But in order to allow state law enforcement to work on this issue, I am now calling on Congress to pass the Counter-UAS Authority Security, Safety, and Reauthorization Act. This bill would reform legal authorities to counter-UAS and strengthen the FAA’s oversight of drones, and would extend counter-UAS activities to select state and local law enforcement agencies.”
“Extending these powers to New York State and our peers is essential. Until those powers are granted to state and local officials, the Biden Administration must step in by directing additional federal law enforcement to New York and the surrounding region to ensure the safety of our critical infrastructure and our people.”
New Jersey Rep. Chris Smith scheduled a press conference to give an update on drone activity Saturday in Seaside Heights. Smith said he also plans to unveil new federal legislation to address the issue.
It comes after New Jersey Gov. Phil Murphy sent a letter to President Biden, asking for the federal government’s help addressing the drones.
“While I am sincerely grateful for your administration’s leadership in addressing this concerning issue, it has become apparent that more resources are needed to fully understand what is behind this activity,” Murphy wrote.
Drone sightings have also been reported in Pennsylvania and other cities along the East Coast.
contributed to this report.
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Blinken publicly confirms U.S. officials have been in direct contact with the Syrian rebel group that ousted Assad
U.S. Secretary of State Antony Blinken said Saturday that American officials have been in direct contact with the Syrian rebel group that spearheaded the overthrow of President Bashar al-Assad’s government but is designated a foreign terrorist organization by the United States and others.
Blinken is the first U.S. official to publicly confirm contacts between the Biden administration and Hayat Tahrir al-Sham, or HTS, which led a coalition of armed opposition groups that ousted Assad from power last Sunday.
Speaking at a news conference in Aqaba, Jordan, Blinken would not discuss details of the contacts but said it was important for the U.S. to convey messages to the group about its conduct and how it intends to govern in a transition period.
“Yes, we have been in contact with HTS and with other parties,” Blinken said. He added that “our message to the Syrian people is this: We want them to succeed and we’re prepared to help them do so.”
Blinken also said that officials are “also communicating directly with those in positions of authority in Syria.”
Andrew Caballero-Reynolds/AFP via Getty Images
HTS, which was once an affiliate of al-Qaida, has been designed as a foreign terrorist organization by the State Department since 2018. That designation carries with it severe sanctions, including a ban on the provision of any “material support” to the group or its members. The sanctions do not, however, legally bar U.S. officials from communicating with designated groups.
In an interview Saturday on Syrian television, the group’s leader, Ahmad al-Sharaa, formerly known as Abu Mohammed al-Golani, did not address any direct contact with the United States, but said the new authorities in Damascus, the capital, are in touch with Western embassies.
HTS has worked to establish security and start a political transition after seizing Damascus and has tried to reassure a public both stunned by Assad’s fall and concerned about extremist jihadis among the rebels. Insurgent leaders say the group has broken with its extremist past.
Al-Sharaa appeared in a video message Friday congratulating “the great Syrian people for the victory of the blessed revolution.”
U.S. officials say al-Sharaa has been making welcome comments about protecting minority and women’s rights but remain skeptical that he will follow through on them in the long run.
“We know that what happens inside of Syria can have powerful consequences well beyond its borders, from mass displacement to terrorism, and we know that we can’t underestimate the challenges of this moment and in the weeks and months ahead,” Blinken said Saturday.
On Friday, the rebels and Syria’s unarmed opposition worked to safely turn over to U.S. officials an American man who had been imprisoned by Assad.
Blinken said U.S. officials are continuing “our own dogged, determined efforts” as they search for Austin Tice, an American journalist who disappeared 12 years ago near Damascus.
“We have impressed upon everyone we’ve been in contact with the importance of helping find Austin Tice and bringing him home,” Blinken said.
Travis Timmerman, the American who said he was freed from a Syrian prison after Assad’s ouster, was taken out of the country by the U.S. military, CBS News reported earlier this week.
Luigi Mangione, the suspect in the killing of UnitedHealthcare’s CEO, has added a prominent defense lawyer to his legal team as Manhattan prosecutors work to return him from Pennsylvania to face a murder charge.
Mangione will be represented by Karen Friedman Agnifilo, who was a high-ranking deputy in the Manhattan district attorney’s office for years before entering private practice. Friedman Agnifilo’s law firm, Agnifilo Intrater LLP, confirmed in a statement late Friday that she had been retained to represent Mangione. The firm said she will not be commenting on the case at this time.
According to her firm’s website, “A public servant for nearly three decades, Karen Friedman Agnifilo left the government as the Chief Assistant District Attorney in the Manhattan District Attorney’s Office, a role she held from 2014 through 2021.”
Mangione was arrested Monday after a customer at a McDonald’s in Altoona, Pennsylvania, saw him eating breakfast and noticed a resemblance to the person being sought by police in the Dec. 4 killing of Brian Thompson in Manhattan.
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Police say Mangione was found with a gun, mask and writings linking him to the ambush outside the New York Hilton Midtown, where Thompson was arriving for his company’s annual investor conference.
The New York Police Department told CBS News that there are no indications that Mangione was a UnitedHealthcare customer.
Mangione, 26, remained jailed without bail Saturday in Pennsylvania, where he was initially charged with gun and forgery offenses. Altoona is about 230 miles west of New York City.
Mangione’s lawyer there, Thomas Dickey, has cautioned against prejudging the case and said that his client would contest his extradition to New York.
But Manhattan District Attorney Alvin Bragg said Friday that there were indications Mangione may now give up on that fight.
“We going to continue to press forward on parallel paths, and we’ll be ready whether he is going to waive extradition or whether he is going to contest extradition,” Bragg said at an unrelated press conference in Times Square.
Hours after Mangione’s arrest on Monday, Bragg’s office filed paperwork charging him with five counts, including intentional murder, criminal possession of a weapon and criminal possession of a forged instrument.
New York Gov. Kathy Hochul has said she’s prepared to ask her Pennsylvania counterpart, Gov. Josh Shapiro, to intervene and issue a governor’s warrant requiring Mangione’s extradition if he does not agree to be moved voluntarily.
Mangione’s new lawyer has made frequent TV appearances, including as a CNN legal analyst, co-hosts a weekly podcast and is the legal adviser for “Law & Order.”
Her husband and law partner Mark Agnifilo is representing Sean “Diddy” Combs in the hip-hop mogul’s Manhattan federal sex trafficking case.
Drone activity in New York shut down runways at Stewart Airfield, governor says
Blinken publicly confirms U.S. officials have been in direct contact with the Syrian rebel group that ousted Assad
Suspect in the killing of UnitedHealthcare’s CEO hires former Manhattan prosecutor
Drone activity in New York shut down runways at Stewart Airfield, governor says
Blinken publicly confirms U.S. officials have been in direct contact with the Syrian rebel group that ousted Assad
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