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Tag: Inflation

States tap historic surpluses for tax cuts and rebates to offset inflation hit on residents
Business

States tap historic surpluses for tax cuts and rebates to offset inflation hit on residents

Stoked by the largest surplus in state history, Missouri's Republican-led Legislature devised a $500 million plan to send one-time tax refunds to millions of households. In a shock to some, GOP Governor Mike Parson vetoed it. Parson's objection: He wanted a bigger, longer-lasting tax cut. "Now is the time for the largest income tax cut in our state's history," Parson declared as he called lawmakers back for a September special session to consider a $700 million permanent tax reduction. Upon the plan's likely approval, Missouri will join at least 31 states that already have enacted some type of tax cut or rebate this year — an astounding outpouring of billions of tax dollars back to the people. Idaho lawmakers are convening Thursday to conside...
Business Highlights: Fed’s fight, Wall Street slump
Business

Business Highlights: Fed’s fight, Wall Street slump

___Powell: Fed’s inflation fight could bring ‘pain,’ job lossesJACKSON HOLE, Wyoming (AP) — Federal Reserve Chair Jerome Powell delivered a stark message Friday: The Fed is determined to fight inflation with more sharp interest rate hikes, which will likely cause pain for Americans in the form of a weaker economy and job losses. “These are the unfortunate costs of reducing inflation,” Powell said in a high-profile speech at the Fed’s annual economic symposium in Jackson Hole. “But a failure to restore price stability would mean far greater pain.” Investors had been hoping for a signal from Powell that the Fed might soon moderate its rate increases later this year if inflation were to show further signs of easing. But the Fed chair indicated that that time may not be near.___Dow drops 1,...
Inflation cools as U.S. consumer prices rose 6.3% in July
Business

Inflation cools as U.S. consumer prices rose 6.3% in July

Inflation eased last month as energy prices tumbled, according to a report closely watched by the Federal Reserve.Consumer prices rose 6.3% in July from a year earlier after posting an annual increase of 6.8% in June, with the latter representing the biggest jump since 1982, the Commerce Department reported Friday. Energy prices made the difference in July: They dropped last month after surging in June.Friday's government figures signal that the hottest inflation in 40 years may be easing, aided by lower prices at the pump. The Federal Reserve, which closely watches this inflation gauge, has been raising rates to increase the cost of borrowing with the goal of tamping purchasing demand from consumers and businesses and taming inflation.  "Infl...
Alberta has highest food insecurity rate among Canadian provinces: report
Global News

Alberta has highest food insecurity rate among Canadian provinces: report

Alberta has the highest rate of food insecurity among provinces in Canada, according to a new report out of the University of Toronto. Proof, a research program at the U of T, released its 2021 Household Food Insecurity in Canada report last week. It used data from 54,000 households from Statistics Canada’s 2021 Canadian Income Survey (CIS) and found a “disturbingly high rate of household food insecurity.”Food insecurity refers to the inadequate or insecure access to food due to financial constraints. Researchers say those most at risk are households with low incomes and limited assets. Indigenous households, those led by female lone parents and those reliant on public income supports other than public pensions are disproportionately impacted by food insecurity. Read more: ...
Global Shares Mostly Higher Amid Risks, Volatility Worries
News

Global Shares Mostly Higher Amid Risks, Volatility Worries

By YURI KAGEYAMA, AP Business WriterTOKYO (AP) — Global shares mostly rose Tuesday, despite investor risk reflected in negative economic data out of China, and analysts warned that volatility may lie ahead.European shares gained in early trading. The benchmark in Tokyo finished little changed, while indexes in South Korea and Australia gained. Hong Kong's benchmark slipped, while Shanghai shares rose.France's CAC 40 added 0.4% in early trading to 6,598.28. Germany's DAX rose 0.6% to 13,904.68. Britain's FTSE 100 added 0.4% to 7,539.93. U.S. shares were set to drift moderately lower with Dow futures inching down to 33,869.00. S&P 500 futures fell nearly 0.1% to 4,295.00.Falling oil prices are one positive factor for the region. In Japan, recent economic data have shown a recovery, bu...
‘China Threat’ Emerges in Elections From UK to Australia
News

‘China Threat’ Emerges in Elections From UK to Australia

By SYLVIA HUI, Associated PressLONDON (AP) — It's not just the economy. While inflation and recession fears weigh heavily on the minds of voters, another issue is popping up in political campaigns from the U.K. and Australia to the U.S. and beyond: the “China threat."The two finalists vying to become Britain's next prime minister, Liz Truss and Rishi Sunak, clashed in a televised debate last month over who would be toughest on China.It's a stark departure from outgoing Prime Minister Boris Johnson’s business-focused “Sinophile” approach and part of a hardening of anti-China rhetoric in many Western countries and other democracies, like Japan, that is coming out in election campaigns.Nations for years have sought to balance promoting trade and investment with the world’s second-largest e...
Travelers urged to take advantage of falling airline ticket prices, experts say
Business

Travelers urged to take advantage of falling airline ticket prices, experts say

Inflation finally slowed in July, a shift that could be due in part to declining fuel prices. That, in turn, appears to have corresponded to a drop in airfares, which are down 7.8% in July compared to June, according to the latest numbers released this week from the Labor Department.Flights from San Diego are $230 cheaper on average than the peak they reached in May, according to the travel site Hopper. Flights to Hawaii have dropped $154, and a flight to Prague will cost you about $300 less."I feel like it went up, but now it's going back to like normal prices," traveler Sharrie Scott said. Airline ticket prices peaked in May as pent-up pandemic demand filled planes and fuel prices soared. To find a deal, Ranada Young and her mom took a ridic...
Stocks fly high on Wall Street, giving the S&P 500 its 4th straight week of gains
Business

Stocks fly high on Wall Street, giving the S&P 500 its 4th straight week of gains

U.S. stocks saw big gains on Friday, giving the S&P 500 its first 4-week winning streak since November.The benchmark index rose 73 points to 4,280, or 1.7%, Friday, while the Dow Jones Industrial Average climbed 424 points to 33,761, or 1.3%. Technology stocks drove much the rally with the Nasdaq up 2%. Energy companies lagged the market as crude oil prices fell. Inflation cooled more than expected last month, sending stocks higher. Investors see a higher chance inflation may have peaked, allowing the Federal Reserve to be less aggressive with its rate hikes than it has been this year.Inflation is still painfully high, of course, and the economy has given false signals before that relief was on the way only for the rug to get pulled out f...
One thing the Inflation Reduction Act may not do: Lower inflation
Business

One thing the Inflation Reduction Act may not do: Lower inflation

The Inflation Reduction Act is aimed at tackling a host of problems, from climate change to catching tax cheats, but there's one issue it may not solve: reducing inflation. That's the conclusion of the Penn Wharton Budget Model, a group of economists and data scientists at University of Pennsylvania who analyze public policies to predict their economic and fiscal impacts. Its analysis, published Friday, comes as inflation remains near a 40-year high, crimping the budgets of consumers and businesses alike. The Inflation Reduction Act would invest nearly $400 billion in energy security and climate change proposals, aimed at reducing carbon emissions by approximately 40% by 2030. It also would allow Medicare to negotiate with drugmakers on prescription prices, and would limit out-o...
North American stock markets continue broad-based rally; commodities weaker
Global News

North American stock markets continue broad-based rally; commodities weaker

North American markets enjoyed a broad-based rally Friday, bolstered by two encouraging U.S. inflation reports earlier in the week and a lack of any other major economic news on the day to offset them. With a near-total absence of market-moving events on what was a quiet day heading into a summer weekend, the S&P/TSX composite index still gained 187.93 points to close at 20,179.81.In New York, the Dow Jones industrial average closed up 424.38 points at 33,761.05. The S&P 500 index closed up 72.88 points at 4,280.15, while the Nasdaq composite gained 267.28 points to close at 13,047.19. Read more: Variable? Fixed? Static? Picking the right mortgage as interest rates rise “There has hardly been any news today, so this seems to be primarily momentum tra...