August, 11 2017, 11:15am EDT
For Immediate Release
Contact:
Tillie McInnis,Domestic Communications Coordinator,202-293-5380 x117,E-mail,Dan Beeton,International Communications Coordinator,202-239-1460,E-mail
Inflation Slows Further In July CPI
It appears rental inflation is slowing, rising at a 2.7 percent annual rate in the last three months.
WASHINGTON
It appears that inflation is continuing to decelerate in spite of an unemployment rate that is at a 16-year low. The overall and core CPI both rose 0.1 percent in July. This brings the rate of increase over the last 12 months in both measures respectively to 1.7 percent, well below the Fed's 2.0 percent, as measured by the PCE, which translates into roughly a 2.2 percent CPI inflation rate.
Perhaps even more important than the level is the direction of change. The rate of inflation appears to be slowing. Taking the average price level over the last three months (May, June, and July) compared with the prior three months (February, March, and April), the annual rate of inflation in the core index has been just 0.7 percent. Even this modest increase is driven entirely by rising rents. If shelter costs are pulled out of the core index, it has been dropping at a 0.7 percent annual rate over the last three months compared with the prior three.
There is even some good news on rental costs. It appears that the rate of increase in rents is now slowing. The year-over-year increase for the owners' equivalent rent (OER) component had been as high as 3.6 percent back in December. It is down to 3.2 percent for July and the annualized rate comparing the last three months with the prior three months is just 2.7 percent. (The OER is a better measure of actual housing costs because the rent proper index also includes some utilities.)
Inflation in almost all other components remains well contained. The price of medical care services increased by 0.3 percent in July and is up 2.3 percent for the last year. College tuition costs rose by just 0.1 percent in July and are up by 2.0 percent over the last year.
An exception is medical care commodities, which were up 1.0 percent in July and are now up by 3.7 percent over the last year. This is being driven by higher prices for prescription drugs, the index for which rose 1.3 percent in July and is now up by 4.2 percent over its year-ago level.
One area of notable price declines is used and new vehicles. The price of both fell by 0.5 percent in July. Over the last year, new vehicle prices are down 0.6 percent, while used vehicle prices have fallen by 4.1 percent. A big part of this story is a glut on the used car market due to the repossession of large numbers of cars sold on subprime loans. This depresses prices in the used car market, which then puts downward pressure on prices in the new car market.
Since the start of 2010, new vehicle prices have risen at less than a 1.0 percent annual rate, while used car prices have fallen by more than 4.0 percent. It's worth noting the new vehicle index may not reflect actual sales prices. The Bureau of Labor Statistics (BLS) incorporates quality adjustments in its measurements. This means that its index for vehicle prices may be flat or declining, even if the price of a new car in 2017 is higher than the price in 2016. If people don't perceive the quality improvements in the same way as BLS, they could still think car prices are rising.
This is one reason why concerns over a deflationary spiral are silly. Deflation could mean modest increases in the price of most goods, coupled with substantial quality improvements. It's hard to envision the economy collapsing because the quality of goods and services is improving more rapidly.
In addition to the CPI report released today, yesterday's report on the Producer Price Index also gives no indication of accelerating inflation. The overall final demand index fell 0.1 percent in July, while the core index excluding food, energy, and trade were flat for the month. Both indexes are up 1.9 percent over the last year. The intermediate goods index fell 0.1 percent, while the core intermediate goods index fell 0.3 percent.
In short, the July data suggest that inflation is likely slowing from its rate earlier in 2017. It is certainly not increasing.
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'This Maniac Must Be Stopped': Netanyahu Condemned Over Massive Beirut Bombing
While Hezbollah's leader Hassan Nasrallah reportedly survived the attack on the densely populated area of Lebanon's capitol, one observer warned that Israel may still "get the regional war it has sought."
Sep 27, 2024
Israel's dropping of massive bombs in Beirut on Friday sparked a fresh wave of global condemnation against Israeli Prime Minister Benjamin Netanyahu, with critics accusing him of trying to drag the Middle East into an even bloodier conflict that could engulf the entire region.
The Israeli attack supposedly targeted Hassan Nasrallah, head of the political and paramilitary group Hezbollah. Multiple media outlets reported that the leader survived, though hundreds of others are feared dead in the "complete carnage" from the bombing that leveled several buildings. While the death toll from Friday is not yet clear, over 700 people have been killed in Israel's strikes in Lebanon since Monday.
As The New York Timesreported:
Lebanon's health minister, Firass Abiad, said that there had been a "complete decimation" of four to six residential buildings as a result of the Israeli strikes. He said that the number of casualties in hospitals was low so far because people were still trapped under the rubble. "They are residential buildings. They were filled with people," Mr. Abiad said. "Whoever is in those buildings is now under the rubble."
Social media and news sites quickly filled with photos and videos of massive plumes of smoke and smoldering rubble.
Jeanine Hennis-Plasschaert, the United Nations special coordinator for Lebanon, said Friday that she was "deeply alarmed and profoundly worried about the potential civilian impact of tonight's massive strikes on Beirut's densely populated southern suburbs. The city is still shaking with fear and panic widespread. All must urgently cease fire."
However, the bombing is widely expected to worsen this week's escalation, which came after nearly a year of the Israel Defense Forces (IDF) trading strikes with Hezbollah over the Israeli assault on the Gaza Strip, which has killed over 41,000 Palestinians.
"For Israel, it may not matter if Nasrallah was killed. Either way, it believes it'll get the regional war it has sought," Trita Parsi, executive vice president of the Quincy Institute for Responsible Statecraft, said of the Friday attack.
Citing an unnamed Israeli official, NBC Newsreported that "Israel expects Hezbollah will attempt to mount a major retaliatory attack" in response to Friday's bombing of the group's command center.
As Reutersdetailed:
Israel has struck the Hezbollah-controlled southern suburbs of Beirut, known as Dahiyeh, four times over the last week, killing at least three senior Hezbollah military commanders.
But Friday's attack was far more powerful, with multiple blasts shaking windows across the city, recalling Israeli airstrikes during the war it fought with Hezbollah in 2006.
In a video posted on social media, IDF Spokesperson Rear Adm. Daniel Hagari described the Friday attack as "a precise strike" on what "served as the epicenter of Hezbollah's terror," adding that the group's headquarters "was intentionally built under residential buildings."
During Netanyahu's United Nations General Assembly speech on Friday—which was met with a walkout from several diplomats and other officials—the prime minister said that Hezbollah has stored rockets "in schools, in hospitals, in apartment buildings, and in the private homes of the citizens of Lebanon. They endanger their own people. They put a missile in every kitchen, a rocket in every garage."
In response, Middle East expert Assal Rad said, "So he's claiming there's no civilian spaces in Lebanon and Israel has a right to destroy all of it."
Jason Hickel, who has positions at multiple European universities, also sounded the alarm over those lines from the Israeli leader's speech.
Netanyahu is "effectively arguing all homes are a military target," he said. "This is 100% genocidal and this maniac must be stopped."
Hours before the attack in suburban Beirut, the Democracy in Europe Movement 2025 (DiEM25) strongly condemned "Israel's brutal bombardment of Lebanon, another reckless escalation in the Middle East on behalf of the Benjamin Netanyahu regime that risks further destabilization in an already fragile region."
"The Israeli bombardment of Lebanon is the latest dark chapter in a series of disproportionate displays of force. Its ongoing genocide in Palestine over the last year has proven beyond any doubt that its willingness to commit horrific acts knows no bounds," DiEM25 said. "Rather than seeking a peaceful and just resolution, Israel's government has consistently chosen the path of militarism, often with international support from the European Union and the United States."
"The international community, including the E.U., has a critical role to play in promoting peace rather than enabling violence," the group added. "Peace and security in the Middle East will not come through bombs and military strength. It will come through diplomacy. We remain committed to working towards that aim and stand in solidarity with the Lebanese people, as well as all others suffering from this violent escalation."
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'This Is Political,' Journalist Who Published Vance Dossier Says of Permanent X Ban
"It's not about a violation of X's policies," wrote Ken Klippenstein. "What else would you call this but politically motivated?"
Sep 27, 2024
Independent journalist Ken Klippenstein said Friday that he was privately informed by the Elon Musk-owned social media platform X that his account has been permanently banned, a decision that Klippenstein argued was "politically motivated."
X, formerly Twitter, suspended Klippenstein on Thursday after he posted to the platform a link to his Substack article containing a download link for a 271-page dossier that Republican nominee Donald Trump's campaign prepared to vet Sen. JD Vance (R-Ohio), who was ultimately chosen as the former president's running mate.
The dossier, Klippenstein noted, "reportedly comes from an alleged Iranian government hack of the Trump campaign," and major news outlets such as Politicodeclined opportunities to publish it. The U.S. Justice Department on Friday charged three men with allegedly carrying out a hack against the Trump campaign.
In a statement issued late Thursday afternoon as it faced backlash, X said that "Ken Klippenstein was temporarily suspended for violating our rules on posting unredacted private personal information, specifically Sen. Vance's physical addresses and the majority of his Social Security number."
On Friday, Klippenstein—who has previously worked for The Intercept and The Nation—shared a private message from X informing him that his account is "permanently in read-only mode, which means you can't post, Repost, or Like content" or "create new accounts."
"The two-step dance X is doing here—avoiding further backlash by pretending like my suspension is just a temporary thing, no big deal, while privately suspending me permanently—only makes sense when you consider the political dimensions," Klippenstein wrote on his Substack. "Elon Musk is an outspoken supporter of Donald Trump and JD Vance's political campaign. The Wall Street Journalreported that he promised $45 million a month for a pro-Trump Super PAC (Musk subsequently disputed this). So X clearly doesn't want to give the appearance that my ban was politically motivated. But a careful look at the pretext X cites for my suspension makes it obvious that this is political."
"The media is going to see the case of the Vance dossier and conclude that reporting on similar documents isn't worth losing their social media accounts over."
Observers have noted the obvious parallels between the social media platform's handling of the Vance dossier and a 2020 New York Post story on the contents of Hunter Biden's laptop. At the time, Twitter—not yet under Musk's ownership—placed restrictions on sharing of the Post story, limits that were reversed months later.
Klippenstein noted Friday that Musk—a self-proclaimed "free speech absolutist"—was "so incensed by Twitter's previous owners' decision to block the story on its platform that he took the extraordinary step of releasing Twitter's internal correspondence to independent journalist Matt Taibbi so he could report on how the decision came about. (I support his transparency, by the way.)"
"Now, anyone posting a link to my article finds their account locked, which is exactly how Twitter handled the Hunter Biden laptop story by the New York Post," Klippenstein wrote.
Journalist Lee Fang pointed out shortly after Klippenstein's ban that "the Hunter Biden laptop—which had newsworthy info that was fair game—also had personal dox info, far more than this Vance doc."
"The Biden laptop had bank/credit cards, personal addresses, nudity, etc," Fang added. "You can still link to those Biden docs on X, but Vance doc link banned?"
Klippenstein argued that "the biggest tell that this is political" is that X did not offer him a chance to restore his account by removing the post that resulted in his ban, as the platform typically does with users accused of violating its policies.
"As an experiment, last night my editor and I decided to redact all 'private' information from the Vance dossier in my story here at Substack," Klippenstein wrote Friday. "Despite filing an appeal in which I mention this, I remain banned. So it's not about a violation of X's policies. What else would you call this but politically motivated?"
"Boo hoo, poor me, I lost my account. That's not the point here," he continued. "If you were frustrated with the media's refusal to publish the Vance dossier, prepare for a future that's worse. The media is going to see the case of the Vance dossier and conclude that reporting on similar documents isn't worth losing their social media accounts over. Why take the risk when you can just blather on about the horse race? As always, it's the public that loses out the most."
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Dems Name and Shame Companies Paying Executives More Than They Pay in Federal Taxes
"In the first five years following the 2017 giveaway, 35 companies raked in $277 billion in domestic profits and paid their executives $9.5 billion."
Sep 27, 2024
A group of congressional Democrats and Independent Sen. Bernie Sanders on Friday highlighted dozens of profitable U.S. corporations that have paid their executives more than they've paid in federal income taxes in recent years, a problem that the lawmakers attributed in large part to former President Donald Trump's massive tax-cut package that Republicans are working to extend.
"In the first five years following the 2017 giveaway, 35 companies raked in $277 billion in domestic profits and paid their executives $9.5 billion—more than they paid in federal income taxes," the lawmakers noted in letters to each of the companies, pointing to recent research by the Institute for Policy Studies and Americans for Tax Fairness.
"Next year, Congress will decide what to do with these corporate giveaways. Republicans have promised to go even further if elected and cut the corporate income tax rate from 21% to 15%," the lawmakers continued. "This additional tax giveaway would provide Fortune 100 corporations as a whole with another $50 billion each year, more than all current K-12 federal education spending."
"The windfall from TCJA to big businesses, executives, and wealthy shareholders is unmistakable."
Sens. Elizabeth Warren (D-Mass.) and Sheldon Whitehouse (D-R.I.) in the Senate and Rep. Greg Casar (D-Texas) in the House led the letters to the 35 companies, a list that includes high-profile names such as Netflix, Ford, and Tesla, whose CEO is the richest man in the world.
"Tesla is among the most dramatic examples of this phenomenon—big, profitable corporations that have actually been paying their top executives more than they pay the government in federal income taxes," the lawmakers wrote. "According to an analysis by the Institute for Policy Studies and Americans for Tax Fairness, in the period between 2018 and 2022, Tesla raked in $4.4 billion in profits and did not pay a single dollar in federal income tax."
During that same period, Tesla chief executive Elon Musk received "the largest pay package ever recorded for a company's CEO," the lawmakers observed.
The other companies that have paid their top executives more than they've paid in federal taxes in recent years are T-Mobile, AIG, NextEra, Darden, MetLife, Duke Energy, First Energy, DISH, Principal Financial, American Electrical Power, Kinder Morgan, Dominion, Oneok, Williams, Xcel Energy, NRG Energy, Salesforce, DTE Energy, Ameren, Sempra Energy, U.S. Steel, Entergy, AmerisourceBergen, PPL, CMS Energy, Evergy, Voya Financial, Atmos Energy, Alliant Energy, Match Group, UGI, and Agilent Tech.
The lawmakers demanded that the companies' CEOs answer several questions, including how much the corporations would have paid in federal taxes had the 2017 Tax Cuts and Jobs Act (TCJA) not been enacted and how much they've spent on lobbying to keep the Republican law intact.
"The windfall from TCJA to big businesses, executives, and wealthy shareholders is unmistakable," the letters read. "A recent analysis by the Institute on Taxation and Economic Policy found that 342 companies paid an average effective income tax rate of just 14.1% during the five years after TCJA passed, almost a third less than the 21% statutory rate. The gains do not 'trickle down'—90% of workers saw no earnings increase, while executives making $989,000 per year or more got an average raise of $50,000."
The letters were released days after the Economic Policy Institutereleased an analysis showing that CEO pay has soared by 1,085% since 1978 while the pay of typical U.S. workers has grown by just 24%.
The 2017 Trump-GOP tax law led major companies to splurge on stock buybacks, a major gift to corporate executives whose annual compensation packages consist largely of stock.
"President [Joe] Biden and Democrats in Congress are committed to making corporations pay their fair share," the lawmakers wrote in their letters. "In the 2022 Inflation Reduction Act, we passed the first corporate tax increase in 30 years with the 15% corporate minimum tax. Though significant, raising $222 billion from billion-dollar corporations, it is not enough on its own to undo the corporate tax giveaways signed into law by President Trump and ensure that corporations pay their fair share."
"Next year," they added, "Congress has an opportunity to take bigger strides in reforming our tax code—to raise the corporate rate, close loopholes, and hold big businesses to the same standards as everyday working Americans who pay their fair share."
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