Thursday 8 September 2022

The Daily Money: This is why inflation won't go away any time soon

08:50

By: Unknown on 08:50

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The Daily Money

ALL THE MONEY NEWS YOU NEED TO KNOW

Thursday, September 8

Happy Thursday, Daily Money readers. The weekend is almost here. It's Brett Molina with your Friday eve headlines.

Let's start with Apple. The tech giant announced several new products Wednesday. Here's a quick breakdown.

iPhone 14. Consumers will have four to choose from when the phones become available to preorder Friday. There's the iPhone 14 and iPhone 14 Plus, which bring the typical bells and whistles like faster speeds and a better camera. Then there's the iPhone 14 Pro and Pro Max with an always-on display and a beefy 48-megapixel camera.

Apple Watch Series 8. The big additions this year are a temperature sensor which can aid in cycle tracking and crash detection which can alert emergency services if you get in a serious car crash. Then there's the Apple Watch Ultra if you're in to really serious physical activity.

AirPods Pro 2. Apple's high-end earbuds get an upgrade, with better sound and clarity, as well as an improved rechargeable case.

This is why inflation is hanging around

Prices for goods are starting to moderate. Unfortunately, inflation could stay high because the cost of services is still climbing. Housing and medical services are among those that will keep inflation higher, forcing the Fed to keep bumping up interest rates to slow them down. And that could mean consumers end up paying more.

📰 A USA TODAY investigation 📰

USA TODAY has conducted a monthslong investigation of Utah-based COVID testing startup Nomi Health, the no-bid contracts it received, and questions that officials raised over its testing accuracy and campaign contributions. Here's the latest:

•	A COVID-19 testing startup with 'no history of success' faces lawsuit over accuracy claims
•	Why is Nomi Health donating to key Democrats in blue state Hawaii after giving big to GOP?

🍔 Today's Menu 🍔

Next time you roll up to Chick-fil-A, you'll have two new items to choose. First, there's an Autumn Spice Milkshake, which combines Chick-fil-A Icedream dessert with cinnamon and bits of brown sugar cookies. Plus, the fast food chain is bringing back the Grilled Spicy Deluxe Sandwich, which features grilled chicken marinated in a spicy seasoning, a toasted multigrain brioche bun, Colby-Jack cheese, lettuce and tomato. And now I'm hungry.

About The Daily Money

Each weekday, The Daily Money delivers the best consumer news from USA TODAY. We break down financial news and provide the TLDR version: how decisions by the Federal Reserve, government and companies impact you.

Follow Brett Molina on Twitter: @brettmolina23.

Median rents have hit record highs across the country, thanks to inflation and pandemic-related shortages of housing and building supplies. In many parts of the country, people who choose to rent may find it difficult to meet conventional wisdom's rule that monthly rent should not exceed 30% of one's monthly income. While rent prices are prohibitively high across a large part of the country, in nearly every state there is at least one county where rents fall well below the national average. To find the county with the lowest rent in every state, 24/7 Wall St. reviewed five-year estimates of median gross rent among counties and county equivalents from the U.S. Census Bureau's 2020 American Community Survey. It is important to note that the figures reflected here are for 2020, the most recent data available through the census. While prices today are much higher across much of the country, the least expensive rental market in each state in 2020 is likely still one of the least expensive markets in 2022. The national 2020 median rent was $1,096. In 49 of the 50 states, there is at least one county with a lower 2020 median gross rent. Housing costs reflect the income levels of the population living there. Costs tend to be less expensive in poorer communities. The U.S. median household income is $64,996. Of the 50 counties on this list, 49 have lower typical household incomes compared to their home state and 28 have median household incomes of less than $50,000. This is the richest town in every state. Nationwide, 2020 median gross rent comes to 29.6% of median household income. Even after accounting for the lower incomes in most of these counties, rent remains relatively affordable in more than two-thirds of the places on this list. In Washington County, Kansas, median gross rent comes to 16.7% of income. These are the U.S. cities where the most families need food stamps.

Rising cost of services will keep inflation high, economists say.

Inflation hasn't peaked yet. While the cost of goods has fallen, a persistent rise in the price of services is keeping inflation high, economists say.