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June inflation rose 9.1%, reached new 40-year high

Posted: 13 Jul 2022 05:50 AM PDT

WASHINGTON (AP) — Surging prices for gas, food and rent catapulted U.S. inflation to a new four-decade peak in June, further pressuring households and likely sealing the case for another large interest rate hike by the Federal Reserve, with higher borrowing costs to follow.

Consumer prices soared 9.1% compared with a year earlier, the government said Wednesday, the biggest 12-month increase since 1981, and up from an 8.6% jump in May. On a monthly basis, prices rose 1.3% from May to June, another substantial increase, after prices had jumped 1% from April to May.

The ongoing price increases underscore the brutal impact that inflation has inflicted on many families, with the costs of necessities, in particular, rising much faster than average incomes. Lower-income and Black and Hispanic Americans have been hit especially hard, because a disproportionate share of their income goes toward such essentials as housing, transportation and food.

Some economists have held out hope that inflation might be reaching or nearing a short-term peak. Gas prices, for example, have fallen from the eye-watering $5 a gallon reached in mid-June to an average of $4.66 nationwide as of Tuesday — still far higher than a year ago but a drop that could help slow inflation for July and possibly August.

In addition, shipping costs and commodity prices have begun to fall. Pay increases have slowed. And surveys show that Americans' expectations for inflation over the long run have eased — a trend that often points to more moderate price increases over time.

Yet for now, the relentless spike in inflation has caused a steep drop in consumers' confidence in the economy, sent President Joe Biden's approval ratings tumbling and posed a major political threat to Democrats in the November congressional elections. Forty percent of adults said in a June AP-NORC poll that they thought tackling inflation should be a top government priority this year, up from just 14% who said so in December.

In the immediate aftermath of the 2020 pandemic recession, as Americans focused their spending on items for the home, like furniture, appliances and exercise equipment, supply chains became overwhelmed and prices for physical goods soared. But as consumer spending has gradually shifted away from goods and toward services like vacation travel, restaurants meals, movies, concerts and sporting events, some of the highest price increases have occurred in services.

Housing, in particular, has been seized by some of the highest inflation rates in the economy, causing hardships for many. A shortage of houses for sale has sent home prices skyrocketing just as mortgage rates have also soared.

With many people priced out of the market for houses and looking instead to rent, demand for apartments has sent rental rates beyond affordable levels. The national median home price jumped 14.8% in May from a year earlier to $407,600. That's an all-time high according to data to 1999, according to the National Association of Realtors.

The persistence of high inflation has unnerved Chair Jerome Powell and other Fed officials, who are engaged in the fastest series of rate hikes since the late 1980s to try to slow the price spikes. The central bank is expected to raise its key short-term rate later this month by a hefty three-quarters of a point, as it did last month, with potentially more large rate hikes to follow.

Powell has stressed that the central bank wants to see "compelling evidence" that inflation is slowing before it would dial back its rate hikes. Such evidence would need to be a "series of declining monthly inflation readings," Powell said at a news conference last month.

Many economists worry that the Fed's drive to quell inflation will cause it to tighten credit too aggressively even while the economy, by some measures, is slowing. Much higher borrowing costs could trigger a recession, potentially by next year.

Consumers have started to pull back on spending, home sales are falling as mortgage rates rise and factory output slipped in May. Yet steadily robust job growth points to an economy that is still expanding, with little sign of an imminent recession.

Though inflation is likely to slow later this year, it's not clear by how much. Oil prices fell Tuesday to about $96 a barrel. And other commodities, including metals such as copper, have also become less expensive, mostly because of recession fears in both the United States and Europe.

With fewer ships stuck at the Port of Los Angeles and Long Beach, America's largest, shipping costs for international freight have fallen. Wholesale gas prices have fallen to about $3.40 a gallon, which suggests that retail prices could drop to as low as $4.20 by August, according to Omair Sharif, founder of Inflation Insights.

And wholesale used car prices are also falling, which point to declining used car prices in the coming months.

Yet plenty of items are still rising in price, notably apartment rents. The average cost of new leases has jumped 14% in the past year, according to real estate brokerage Redfin, to an average of $2,016 a month.

Rents as measured by the government's inflation index have risen more slowly because they include all rents, including existing leases. But economists expect the rising expense of new leases to send the government's inflation measure higher in coming months.

Inflation has spiked overseas as well. It reached 9.1% in the United Kingdom in May, the highest level in four decades, driven mostly by higher gas and food prices. Annual inflation in the eurozone's 19 countries hit 8.6% in June, surging past the 8.1% recorded in May. Inflation is now at its highest level since recordkeeping for the euro began in 1997.

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What to know about the January 6th hearings

Posted: 13 Jul 2022 08:52 AM PDT

Karen Conti, attorney at ContiLaw, joins Bob Sirott to explain the legalities of the January 6th hearings. She also discusses the repercussions of the Highland Park shooter and if his father could also be charged.

Disgraced R&B star R. Kelly back in Chicago for sex trial

Posted: 13 Jul 2022 09:48 AM PDT

CHICAGO (AP) — R. Kelly has been returned to the federal jail in downtown Chicago ahead of his trial on child pornography and obstruction-of-justice charges, just two weeks after the disgraced R&B star was sentenced in New York to 30 years in prison for racketeering and sex trafficking.

The 55-year-old Kelly was transferred Tuesday from the federal jail in Brooklyn to the Metropolitan Correctional Center, the Chicago Tribune reported. He was also held at the Chicago lockup after he was indicted on federal charges in Chicago and New York in 2019.

Jury selection for his federal trial in Chicago is set to begin Aug. 15.

Kelly was convicted in 2021 in New York on charges that he sexually abused young fans, including children, in a systematic scheme that prosecutors alleged went on for decades. He was sentenced in June.

Kelly has denied any wrongdoing.

Kelly was indicted in 2002 in Illinois state court on 21 counts of child pornography, but was acquitted six years later by a jury.

Federal prosecutors allege Kelly and two co-defendants fixed that state trial, saying Kelly arranged for a girl and her parents to travel overseas to prevent them from talking with police prior to his 2002 indictment and later instructed them to lie to a grand jury about the case.

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Home Sweet Home Chicago (07/09/2022) – David Hochberg with realtor Amy Kite, restoration specialist with BluSky Restoration Cory Ambrose, and Janelle Iaccino AKA ‘The Bug Lady’ with Rose Pest

Posted: 13 Jul 2022 09:53 AM PDT

We started off this week's show by chatting with The Kite Team's Amy Kite about whether or not now is a good time to buy an investment property. Next, restoration specialist at BluSky Restoration, Cory Ambrose, about all things storms, tornadoes, lightning strikes, and structure fires and what is the first step if you're affected by any of these.  Rose Pest Solutions' Marketing Director Janelle Iaccino, A.K.A. 'The Bug Lady', joins the program to talk all things wasps and what to do with them this summer. And obviously, throughout the show, listeners call in asking their questions and getting the information they need for the best outcome!

Would you trade Patrick Kane?

Posted: 13 Jul 2022 10:09 AM PDT

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Could Alzheimer's be a symptom of long COVID?

Posted: 13 Jul 2022 08:52 AM PDT

Dr. Aileen Marty, Infectious Disease Specialist and Professor at Florida International University, joins Bob Sirott to talk about the latest health news. Dr. Marty discusses what diseases could arise for people who have long COVID and answers listeners' questions.

Pickle Cotton Candy & Gummy Bear Brats? 2022 Wisconsin State Fair has eccentric cuisine

Posted: 13 Jul 2022 09:40 AM PDT

MILWAUKEE, Wis. (WFRV) - Over 80 brand new items were added to the 2022 Wisconsin State Fair's food menu, some of which might appeal to those with curious tastebuds.

State fairs across the country always seem to bring out the wild side when it comes to food as attendees can find anything deep-fried, on a stick or covered in bacon. 2022 does not appear to be any different for Wisconsin.

Here are some of the 80+ new items attendees can find to eat, drink and hopefully not spit back out at this year's state fair:

  • Brandy Old Fashioned S'more On-a-Stick
  • Chicken Bacon Ranch Waffle Stick
  • Clam Chowder Fries
  • Deep-Fired Buffalo Chicken Wing Dip
  • Deep-Fried Mashed Potatoes On-a-Stick (cheddar bacon or garlic)
  • Elk Philly Cheesesteak (yes it contains elk)
  • Flamin' Hot Cheetos Chicken On-a-Stick
  • Fried Pickle Cheese Curd Tacos
  • Gummy Bear Brat
  • Mama's Moonshine Fudge
  • Pickle Cotton Candy
  • Pickle Jerky On-a-Stick
  • Walking Banana Explosion

Ahead of the fair, the 9th annual Sporkies judging will happen on August 2, and is only open to the media.

The fair runs from August 4 to August 12 and the full list of new food and drinks can be viewed here. There is also a 'Food Finder' tool that compiles all the vendors and food items at the fair.

One thing is certain, there will certainly be something to eat for everyone that makes the trip to the Wisconsin State Fair this year.

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U.S. Attorney John Lausch: 'What we need to be focused on is keeping people safe'

Posted: 12 Jul 2022 01:58 PM PDT

John Lausch, United States Attorney for the Northern District of Illinois, joins John Williams to talk about federal efforts to combat violent crime in Chicago.

Ukraine-Russia War update: Ukraine's access to long-range weapons

Posted: 13 Jul 2022 05:43 AM PDT

Journalist and editor of 'Ukrainian Freedom News' Joseph Lindsley joined Bob Sirott from Ukraine to deliver the latest news on the Ukraine-Russia crisis, including how Ukraine's new weapons could lead to the next phase of war and how people react to air raid alarms. You can find more updates on Joseph's website, ukrainianfreedomnews.com. To donate to Joseph and his team's efforts to distribute supplies throughout Ukraine, click here.

Leaked Uvalde video shows gunman entering classroom, law enforcement response

Posted: 12 Jul 2022 08:17 PM PDT

UVALDE, Texas (KXAN) — Leaked video to the Austin American-Statesman showed what law enforcement officials did and did not do while an 18-year-old gunman shot and killed 19 children and two teachers in a Uvalde elementary school classroom in May.

WARNING: Video may be disturbing

Members of the Texas House committee investigating the May 24 massacre planned to release the footage to the public Sunday. DA Christina Mitchell Busbee previously instructed the Texas Department of Public Safety not to release the video, according to a letter DPS sent to the committee chair, Rep. Dustin Burrows (R-Lubbock). Burrows announced in a tweet Monday he would release the video to the Uvalde community and families with or without her permission.

The full 77-minute leaked video was released by the Austin American-Statesman Tuesday.

After the video was published, Burrows wrote on social media — "The committee is aware a portion of the hallway video has been made public. While I am glad that a small portion is now available for the public, I do believe watching the entire segment of law enforcement's response, or lack thereof, is also important."

Earlier on Tuesday, Burrows had said the committee planned to share its preliminary report and the full video, without audio, to the Uvalde community before sharing it with the public. He wrote on Twitter after the leak that he was "disappointed" that the families could not see the video first.

The hour-plus video from that camera provides the clearest account to date of what happened in the moments leading up to the gunman's rampage, showing local and state law enforcements' delayed response up until they eventually entered the classroom and killed the gunman. The release of the video comes seven weeks after the massacre, amid public outrage and confusion over different agencies' accounts of what happened that day.

What the video shows

The start of the leaked video from the Austin American-Statesman shows the 18-year-old gunman crash a truck into a ditch outside of the school. Two people can be seen walking toward a ditch area off the side of the road, and start running away.

Four minutes later, the gunman — dressed in black and armed with the AR-15 he purchased legally a week prior — was seen walking down a school hallway.

Unobstructed, he continues to walk down the hallway before reaching, presumably, Room 111 or 112. Gunfire erupts as he walks toward the room.

Three minutes after the gunman unleashed rounds of ammunition, a group of officers from the Uvalde Police Department and the Uvalde school district moved from two ends of the hall to approach the classrooms where the gunman is.

"Not the full story"

State Sen. Roland Gutierrez, D-San Antonio, has been calling for transparency and the release of records from May 24 for weeks. On Twitter, he called the footage "horrific" and the nature of how it was released "appalling."

Nexstar's KXAN interviewed Gutierrez before the full video was leaked. He had already seen the first couple of minutes of the video prior, but not the full video. During the interview, the senator said the release of the 77-minute video would be a "good beginning step, but it's not the full story."

"It's not going to give us the body cam audio, it's not gonna give us the information as to what law enforcement agencies were on site and where they were situated. It's not going to give us the 911 calls, it's not going to give us any indication as to who really if anybody was in charge," Gutierrez said.  

The Democratic senator is also suing the Texas Department of Public Safety for denying him several open records related to the shooting, in violation of state law.

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