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Key Inflation Indicator Remains Sky-High In Another Worrying Sign For Businesses


By JOHN HUGH DEMASTRI, CONTRIBUTOR | September 14, 2022

Read more at https://dailycaller.com/2022/09/14/producer-costs-high-inflation/

U.S. President Joe Biden travels to Ohio
REUTERS/Joshua Roberts

The prices faced by producers rose by 8.7% year-on-year in August as inflation continues to challenge businesses, according to the Bureau of Labor Statistics (BLS).

While down from the near-record highs of 11.3% in June, the current price increases were over 4 times the typical rates — between 1 and 3% annually — seen in 2019 and 2020according to data from the Bureau of Labor Statistics’ Producer Price Index (PPI), which measures the prices suppliers charge businesses and other customers. These elevated rates mirror Tuesday’s Consumer Price Index (CPI), which pegged inflation at 8.3%, according to the BLS. (RELATED: Food Prices Hit 40-Year High, Keep Breaking Records Every Month)

A significant component of the decrease was accounted for by a 5.2% decline in energy costs, according to the BLS. Mirroring July’s results, the index for foods and all goods less food and energy rose by 0.1% and 0.2%, respectively.

The index for all products other than foods, energy and trade services rose by 5.6% year-over-year,  less than the 5.8% posted in July, according to the BLS. The price for unprocessed goods was still incredibly elevated, at 36.1%, more than July’s value of 30.4%, as a spike in the price of natural gas kept prices up.

The Biden administration has been taking a victory lap on economic conditions, with Treasury Secretary Janet Yellen claiming the economy had undergone one of the fastest recoveries in modern history. President Joe Biden claimed that the passage of the Inflation Reduction Act had helped to combat inflation “at the kitchen table,” in a Tuesday speech at the White House.

Simultaneously, the BLS’ monthly CPI report placed inflation at 8.3%, and found that food prices had increased 13.5% annually. Rent and electricity were also up, 6.7% and 15.8% respectively.

Increased rent prices have put pressure on families in particular, with the average cost of a single family rental home up about 13.4% this year, according to CNBC. At a median cost of $2,495 per month, families who might otherwise save to purchase a house are being priced out of home ownership, CNBC reported.

Gas prices also remained incredibly elevated, despite having fallen 12.2% month-on-month, and were still up 25.6% compared to the same time last year, the BLS reported.

Senate Democrats Pass $740 Billion Climate And Healthcare Reconciliation Package


By MICHAEL GINSBERG, CONGRESSIONAL REPORTER | August 07, 2022

Read more at https://dailycaller.com/2022/08/07/senate-democrats-pass-740-billion-climate-healthcare-reconciliation-package-inflation-reduction-act/

schumer manchin
(Chip Somodevilla/Getty Images) (Win McNamee/Getty Images)

The Senate passed the $740 billion Inflation Reduction Act on Sunday afternoon after an all-night session lasted more than 15 hours. The package, negotiated by Democratic Sens. Joe Manchin of West Virginia and Chuck Schumer of New York, passed along party lines, with Vice President Kamala Harris breaking the upper chamber’s 50-50 tie. The bill includes nearly $370 billion in green energy subsidies and tax credits, nearly $80 billion in funding for the Internal Revenue Service and a drug price setting mechanism for Medicare. It also establishes a 15% tax on corporations with market caps higher than $1 billion.

Although Democrats have repeatedly argued that the bill will reduce inflation, the University of Pennsylvania’s Penn Wharton Budget Model has “low confidence that the legislation will have any impact on inflation.” In addition, the bill will likely raise taxes for Americans in every bracket, despite President Joe Biden’s pledge to not raise taxes on anyone making less than $400,000 a year. The Inflation Reduction Act will pay down the federal deficit by more than $300 billion, the non-partisan Committee for a Responsible Federal Budget found.

Senators voted down 35 amendments and passed two, with the 48 Democrats and Independent Angus King of Maine agreeing that they would oppose all amendments offered during vote-a-rama to offer the legislation its best chance of passing. Independent Vermont Sen. Bernie Sanders objected to the agreement, offering amendments that would restructure the child tax credit, but his proposal failed 97-1.

“They’re great amendments. I’m very happy and I think it says something that every Democrat and Republican voted against them. It says I’m doing something right,” Sanders complained, according to Politico. “I’m fighting for you. I think that should be the message — not to come up with a convoluted reason you can’t vote for it.”

Biden, whose team previously feuded with Manchin during negotiations, cheered the vote. (RELATED: Joe Manchin Says He Was ‘Ostracized’ And ‘Victimized’ Over Killing Build Back Better)

“Today, Senate Democrats passed the Inflation Reduction Act, siding with American families over special interests, voting to lower the cost of prescription drugs, health insurance, and energy and reduce the deficit while making the wealthiest corporations pay their fair share,” he said in a statement.

The House of Representatives will take up the legislation when it gets back from recess on Aug. 12, Majority Leader Steny Hoyer announced. The bill is expected to pass the lower chamber along party lines.

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