The daily business briefing: October 14, 2022
Core inflation hits highest annual pace in four decades, Social Security recipients to get 8.7 percent cost-of-living boost, and more
Core inflation rises to highest in decades but Wall Street shakes it off
U.S. inflation remained high in September as core consumer prices, which exclude volatile food and energy costs, rose 6.6 percent from a year earlier, the fastest pace in four decades, according to the federal government's monthly inflation report released Thursday. Overall, prices were up 8.2 percent from a year earlier, a slight decrease from August but a little more than expected. Analysts said the news all but ensured that the Federal Reserve would raise its benchmark short-term interest rate by 0.75 percentage points for a fourth straight time at its next meeting. Stocks closed sharply higher after initially falling on the news. The Dow Jones Industrial Average gained 2.8 percent. The S&P 500 and the Nasdaq rose 2.6 percent and 2.2 percent, respectively. Futures were up early Friday.
Social Security recipients to get 8.7 percent boost to pace inflation
The Social Security Administration confirmed Thursday that millions of Social Security recipients will receive an 8.7 percent cost-of-living adjustment to their benefits in 2023. The hike, the largest in more than 40 years, will boost the average monthly benefit by $140 starting in January. The adjustment was calculated according to the most recent quarterly inflation. Many Social Security recipients welcomed the news, but some said it wouldn't be enough to offset the impact of soaring prices. It's "not much help," 85-year-old Shirley Parker of Chicago said. "Food is ridiculous." Consumer prices rose 0.4 percent in September, up from a 0.1 percent monthly increase in August, with prices up 8.2 percent compared to a year earlier, the Labor Department said Thursday.
Netflix ad-supported subscription to launch in November at $6.99 a month
Netflix announced Thursday that it will offer a subscription to its video streaming service that includes ads for $6.99 a month, starting Nov. 3. Netflix's three current plans, without ads, cost $9.99, $15.49, and $19.99 a month. The new Basic with Ads plan will include four to five minutes of commercials per hour, on average, appearing before and during content, Netflix said. The new tier, which will be offered in 11 countries, will not include access to a "limited" number of movies and shows "due to licensing restrictions, which we're working on." Subscribers at this level also will not be able to download movies and shows.
New York attorney general asks court to freeze Trump assets
New York Attorney General Letitia James on Thursday asked a state court to freeze the New York assets of former President Donald Trump's company, the Trump Organization, and put in place an independent monitor. James filed a $250 million lawsuit last month accusing Trump and his family real estate business of fraudulently overvaluing the company's properties to get better loans, and undervaluing them to get lower taxes. She said preventing Trump and his company from moving their assets is necessary to prevent them from continuing the "same fraudulent practices" and evading justice. Trump's team has denied any wrongdoing and said James' latest filing was "another stunt" to boost her re-election campaign.
1880s Levi's jeans found in abandoned mine sell for $87,000
Two collectors have bought a pair of 1880s Levi's jeans found in an abandoned mine for $87,000 at an auction in the small New Mexico town of Aztec, CNN reported Thursday. "Denim archaeologist" Michael Harris found the jeans in the American West after spending years looking in dozens of abandoned mines, said one of the buyers, vintage denim dealer Zip Stevenson. The jeans have a few tears and patches. Unlike similar pairs displayed in museums, this pair is "surprisingly durable, so they definitely can be worn," said Stevenson, who bought the jeans with 23-year-old Kyle Hautner at the four-day Durango Vintage Festivus festival held by vintage denim expert Brit Eaton. "I could easily imagine Johnny Depp or Jason Momoa wearing them."