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These 5 U.S. cities have been hit hardest by inflation

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Dallas, Detroit, Honolulu, San Francisco and Seattle are all distinctly different U.S. cities, but with one thing in common: Residents there have been hit hardest by inflation.

That’s according to a study from WalletHub which compared key inflation metrics within 23 major metropolitan statistical areas in connection with the latest Consumer Price Index data, as well as CPI data from two months ago and a year ago. The findings suggest inflation is impacting certain cities more than others, further stretching the budgets of Americans in particular parts of the U.S.

Inflation rose 3.3% nationally in May compared to a year ago but rosed even higher in Detroit at 3.5%, a year ago, San Francisco at 3.8%, Seattle at 4.4%, Dallas at 5% and Honolulu at 5.2%, WalletHub’s study shows. In contrast, inflation’s impact in San Diego, Atlanta, Denver, Minneapolis and Tampa, has been far less extreme in some cases, with those cities seeing increases between 1.8% and 3.2%.

Inflation in Dallas is particularly intense due to a housing shortage that is driving up the cost of shelter, one local economist said. The Dallas-Fort Worth area has seen an influx of 150,000 residents between July 2022 and July 2023 and those new residents haven’t found adequate housing, said Dean Stansel, a research economist at Southern Methodist University in Dallas.

“Government restrictions on the construction of new housing are making it difficult for supply to keep up with demand,” Stansel told CBS MoneyWatch. “That housing shortage is driving prices higher than they would otherwise have been.”

Other cities like Seattle are likely still struggling with inflation because of minimum wage hikes that have added higher labor costs to local businesses, Stansel said. 

“Those higher labor costs lead to higher prices for the output of firms using minimum wage labor, such as fast-food restaurants and grocery stores,” Stansel said. “Those higher prices for inexpensive food are particularly burdensome for those with low incomes struggling to make ends meet.”

The CPI data released this week pushed the Federal Reserve to leave its benchmark interest rate unchanged and pencil in only one rate cut for this year. The Fed has not disclosed when that rate cut will happen. 

Within the data, the price of airfare, furniture, clothing, new vehicles, energy and recreation fell in May, helping contain inflation, but shelter costs increased for a fourth straight month, up 0.4%. Medical care, used cars and trucks, education costs, and food away from home also edged up. Economists say shelter and fuel costs are the two biggest anchors weighing inflation from reaching levels the Fed wants to see. 

“The expectation is that inflation in these areas should eventually fall as these price effects run their course in different markets, but this is admittedly taking longer than many initially predicted,” Grant Black, an economist at Lindenwood University, said in WalletHub’s study. “Thankfully, recent inflation data show that food and fuel prices have begun falling modestly, which is a benefit to consumers’ budgets.”



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Former Trump national security adviser says next couple months are “really critical” for Ukraine

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Washington — Lt. Gen. H.R. McMaster, a former national security adviser to Donald Trump, said Sunday that the upcoming months will be “really critical” in determining the “next phase” of the war in Ukraine as the president-elect is expected to work to force a negotiated settlement when he enters office.

McMaster, a CBS News contributor, said on “Face the Nation with Margaret Brennan” that Russia and Ukraine are both incentivized to make “as many gains on the battlefield as they can before the new Trump administration comes in” as the two countries seek leverage in negotiations.

With an eye toward strengthening Ukraine’s standing before President-elect Donald Trump returns to office in the new year, the Biden administration agreed in recent days to provide anti-personnel land mines for use, while lifting restrictions on Ukraine’s use of U.S.-made longer range missiles to strike within Russian territory. The moves come as Ukraine marked more than 1,000 days since Russia’s invasion in February 2022. 

Meanwhile, many of Trump’s key selection for top posts in his administration — Rep. Mike Waltz for national security adviser and Sens. Marco Rubio for secretary of state and JD Vance for Vice President — haven’t been supportive of providing continued assistance to Ukraine, or have advocated for a negotiated end to the war.

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H.R. McMaster on “Face the Nation with Margaret Brennan,” Nov. 24, 2024.

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McMaster said the dynamic is “a real problem” and delivers a “psychological blow to the Ukrainians.”

“Ukrainians are struggling to generate the manpower that they need and to sustain their defensive efforts, and it’s important that they get the weapons they need and the training that they need, but also they have to have the confidence that they can prevail,” he said. “And any sort of messages that we might reduce our aid are quite damaging to them from a moral perspective.”

McMaster said he’s hopeful that Trump’s picks, and the president-elect himself, will “begin to see the quite obvious connections between the war in Ukraine and this axis of aggressors that are doing everything they can to tear down the existing international order.” He cited the North Korean soldiers fighting on European soil in the first major war in Europe since World War II, the efforts China is taking to “sustain Russia’s war-making machine,” and the drones and missiles Iran has provided as part of the broader picture.

“So I think what’s happened is so many people have taken such a myopic view of Ukraine, and they’ve misunderstood Putin’s intentions and how consequential the war is to our interests across the world,” McMaster said. 

On Trump’s selections for top national security and defense posts, McMaster stressed the importance of the Senate’s advice and consent role in making sure “the best people are in those positions.”

McMaster outlined that based on his experience, Trump listens to advice and learns from those around him. And he argued that the nominees for director of national intelligence and defense secretary should be asked key questions like how they will “reconcile peace through strength,” and what they think “motivates, drives and constrains” Russian President Vladimir Putin.

Trump has tapped former Rep. Tulsi Gabbard to be director of national intelligence, who has been criticized for her views on Russia and other U.S. adversaries. McMaster said Sunday that Gabbard has a “fundamental misunderstanding” about what motivates Putin.

More broadly, McMaster said he “can’t understand” the Republicans who “tend to parrot Vladimir Putin’s talking points,” saying “they’ve got to disabuse themselves of this strange affection for Vladimir Putin.” 

Meanwhile, when asked about Trump’s recent selection of Sebastian Gorka as senior director for counterterrorism and deputy assistant to the president, McMaster said he doesn’t think Gorka is a good person to advise the president-elect on national security. But he noted that “the president, others who are working with him, will probably determine that pretty quickly.”



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Sen. Van Hollen says Biden is “not fully complying with American law” on Israeli arms shipments

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Sen. Van Hollen says Biden is “not fully complying with American law” on Israeli arms shipments – CBS News


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Democratic Sen. Chris Van Hollen of Maryland, who last week backed Sen. Bernie Sanders’ bill to block U.S. sending arms to Israel, told “Face the Nation with Margaret Brennan” that President Biden ” is not fully complying with American law” on sending arms to Israel.

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Rep.-elect Sarah McBride says “I didn’t run” for Congrees “to talk about what bathroom I use”

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Rep.-elect Sarah McBride says “I didn’t run” for Congrees “to talk about what bathroom I use” – CBS News


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Rep.-elect Sarah McBride, the first openly transgender person to be elected to Congress, tells “Face the Nation with Margaret Brennan” that as Republicans have sought to put forward a bathroom ban in the Capitol, she “didn’t run for the United States House of Representatives to talk about what bathroom I use.”

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