Consumer Price Index Up 0.4 Percent in August

   (BLS) - 9/17/2011 - The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.4 percent in August on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics reported today. Over the last 12 months, the all items index increased 3.8 percent before seasonal adjustment.
    The seasonally adjusted increase in the all items index was broad-based, with continuing increases in the indexes for gasoline, food, shelter, and apparel. The gasoline index rose for the 12th time in the last 14 months and led to a 1.2 percent increase in the energy index, while the food index rose 0.5 percent, its largest increase since March.
    The index for all items less food and energy increased 0.2 percent in August, the same increase as the previous month. Shelter and apparel were the biggest contributors, though the indexes for most of its
major components posted increases, including used cars and trucks, medical care, household furnishings and operations, recreation, tobacco, and personal care. The new vehicles index, unchanged for the second month in a row, was an exception.
     The 12-month change in the all items index edged up to 3.8 percent after holding at 3.6 percent for three months, while the 12-month change for all items less food and energy reached 2.0 percent for the first time since November 2008. The energy index has risen 18.4 percent over the last year, while the food index has increased 4.6 percent.

Consumer Price Index Data for August 2011

   Food: The food index rose 0.5 percent in August after rising 0.4 percent in
July. The food at home index repeated its July increase of 0.6 percent, with five of the six major grocery store food groups rising. The only exception was the index for nonalcoholic beverages, which declined slightly in August after rising in June and July. The cereals and bakery products index rose the most, increasing 1.1 percent, followed by a 0.9 percent increase in the index for dairy and related products. The index for other food at home rose 0.8 percent as the index for sugar and sweets rose sharply. The indexes
for fruits and vegetables and for meats, poultry, fish, and eggs rose 0.6 percent and 0.4 percent, respectively. The food at home index has now risen 6.0 percent over the past 12 months, with all six groups
rising at least 4.0 percent. The index for food away from home advanced 0.4 percent in August, its largest increase since October 2008, and has risen 2.7 percent over the last year.
    Energy: The energy index, which rose 2.8 percent in July, increased 1.2 percent in August. The gasoline index rose 1.9 percent in August after a 4.7 percent increase in July. (Before seasonal adjustment, gasoline prices fell 0.5 percent in August.) Over the past 12 months, the gasoline index has increased 32.4 percent. The household energy index rose modestly in August, increasing 0.4 percent. The indexes for electricity and for fuel oil both declined slightly, but the index for natural gas increased 2.2 percent in August after declining in July. Over the past year, the household energy index has increased 2.7 percent. The fuel oil index has risen 35.4 percent over that period, while the electricity index has risen 1.9 percent and the index for natural gas has declined, falling 2.0 percent. All items less food and energy:
   The index for all items less food and energy increased 0.2 percent in August, the fifth month in a row that the increase has either been 0.2 percent or 0.3 percent. Similarly, the shelter index rose 0.2 percent in August, its fourth increase in a row of at least that size. The index for rent increased 0.4 percent in August, its largest increase since June 2008. The index for owners' equivalent rent rose 0.2 percent, and the index for lodging away from home turned down after recent increases, falling 1.8 percent. The index for apparel continued its string of substantial increases, rising 1.1 percent in August. The used cars and trucks index also continued to rise, increasing 0.9 percent. The medical care index increased 0.2 percent for the fourth month in a row, with medical care commodities rising 0.1 percent and medical care services increasing 0.3 percent. Also increasing were the indexes for household furnishings and operations (0.3 percent), airline fares (1.1 percent), recreation (0.1 percent), personal care (0.2 percent), and tobacco (0.5 percent). The index for new vehicles was unchanged for the second month in a row after a series of increases. The index for all items less food and energy has risen 2.0 percent in the last 12 months. This 12-month change has been trending up since reaching a low of 0.6 percent for the 12 months ending October 2010. The 12-month change in the shelter index, which was negative through much of 2010, reached 1.6 percent in August. The 12-month change in the apparel index has now reached 4.2 percent after being negative as recently as March of this year. Major transportation indexes have risen strongly over the last 12 months, including used cars and trucks (5.4 percent), new vehicles (3.8 percent) and airline fares (9.5 percent).

Not seasonally adjusted CPI measures

    The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.8 percent over the last 12 months to an index level of 226.545 (1982-84=100). For the month, the index increased 0.3 percent prior to seasonal adjustment.
    The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 4.3 percent over the last 12 months to an index level of 223.326 (1982-84=100). For the month, the index increased 0.3 percent prior to seasonal adjustment.
    The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 3.6 percent over the last 12 months. For the month, the index increased 0.3 percent on a not seasonally adjusted basis.
   Please note that the indexes for the post-2009 period are subject to revision. The Consumer Price Index for September 2011 is scheduled to be released on Wednesday, October 19, 2011, at 8:30 a.m. (EDT).
   Source: U.S. Bureau of Labor Statistics

Consumer Price Index Continues Upward Trend

   (BLS) - 9/14/2011 - The Consumer Price Index for All Urban Consumers (CPI-U) increased 0.5 percent in July on a seasonally adjusted basis, the U.S. Bureau of Labor Statistics recently reported.
   Over the last 12 months, the all items index increased 3.6 percent before seasonal adjustment. The gasoline index rebounded from previous declines and rose sharply in July, accounting for about half of the seasonally adjusted increase in the all items index. The food at home index accelerated in July and also contributed to the increase, as dairy and fruit indexes posted notable increases and five of the six major grocery store food groups rose.
   The index for all items less food and energy increased as well, though the 0.2 percent increase was slightly smaller than the two previous months. The shelter index accelerated in July, and the apparel index again increased sharply. In contrast, the index for new vehicles was unchanged after a long string of increases. The index for household furnishings and operations was flat in July as well, and the recreation index declined slightly.
   The 12 month change in the all items index remained at 3.6 percent for the third month in a row. The change in the index for all items less food and energy continued its upward trend, rising to 1.8 percent in July, with the shelter and apparel indexes contributing notably to the acceleration. The energy index has risen 19.0 percent over the past year.

   Consumer Price Index Data for July 

   Food: The food index rose 0.4 percent in July after rising 0.2 percent in June. The cereals and bakery products index fell 0.1 percent in July; the other five major grocery store food groups all increased. The dairy and related products index, which rose 0.5 percent in June, increased 1.2 percent in July. The fruits and vegetables index also rose 1.2 percent as the index for fresh fruits rose 3.7 percent. The index for nonalcoholic beverages increased 0.9 percent in July as the coffee index continued to rise sharply, while the index for meats, poultry, fish, and eggs increased 0.5 percent and the index for other food at home advanced 0.3 percent. The index for food away from home rose 0.2 percent in July after rising 0.3 percent in June. Over the past 12 months, the food index has risen 4.2 percent with the food at home index up 5.4 percent. All major grocery store food group indexes have risen over the past year; the increases ranged from 3.5 percent (other food at home) to 7.9 percent (dairy and related products).
   Energy: The energy index, which declined in May and June, increased 2.8 percent in July. The gasoline index, down 6.8 percent in June, rose 4.7 percent in July. (Before seasonal adjustment, gasoline prices fell 1.5 percent in July.) Over the past 12 months, the gasoline index has increased 33.6 percent. The household energy index also turned up in July, rising 0.2 percent after a 1.2 percent decline in June. The electricity index, which declined in June, rose 0.8 percent and more than offset a 1.7 percent decline in the index for fuel oil and a 1.2 percent decrease in the natural gas index. The household energy index has risen 2.7 percent over the last 12 months, with the fuel oil index up 37.2 percent and the electricity index up 2.0 percent but the index for natural gas down 2.8 percent.
   All items less food and energy: The index for all items less food and energy rose 0.2 percent in July after increasing 0.3 percent in both May and June. The shelter index rose 0.3 percent in July, its largest increase since June 2008. The indexes for rent and owners' equivalent rent both rose 0.3 percent, while the lodging away from home index increased 0.9 percent. The index for medical care rose 0.2 percent, with the medical care services index rising 0.3 percent while the index for medical care commodities was unchanged. The apparel index continued to rise sharply, increasing 1.2 percent in July; it has increased 3.9 percent over the past three months. The index for used cars and trucks also continued to rise, increasing 0.7 percent in July, and the airline fare index turned up, rising 0.1 percent after falling in May and June. The tobacco index rose as well; its 0.5 percent July increase was its largest of the year. However, the index for new vehicles was unchanged in July after rising at least 0.6 percent in each of the last five months. The indexes for personal care and household furnishings and operations were also unchanged in July, while the index for recreation fell 0.1 percent.
   The 12 month change in the index for all items less food and energy reached 1.8 percent in July, continuing its steady rise from the October 2010 low point of 0.6 percent. Most of its major component indexes have risen more quickly in 2011 than they did in late 2010. The 12 month change in the shelter index, which was negative as recently as October 2010, reached 1.4 percent in July. The apparel index has now increased 3.1 percent over the last 12 months, its largest 12 month increase since July 1992.
                                           Not seasonally adjusted CPI measures 

   The Consumer Price Index for All Urban Consumers (CPI-U) increased 3.6 percent over the last 12 months to an index level of 225.922 (1982-84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.
   The Consumer Price Index for Urban Wage Earners and Clerical Workers (CPI-W) increased 4.1 percent over the last 12 months to an index level of 222.686 (1982-84=100). For the month, the index increased 0.1 percent prior to seasonal adjustment.
   The Chained Consumer Price Index for All Urban Consumers (C-CPI-U) increased 3.5 percent over the last 12 months. For the month, the index increased 0.1 percent on a not seasonally adjusted basis. Please note that the indexes for the post-2009 period are subject to revision.
   The Consumer Price Index for August 2011 is scheduled to be released on Thursday, September 15, 2011, at 8:30 a.m. (EDT).
   Source: U.S. Bureau of Labor Statistics.

Illinois Taxpayer Revenue Up, Federal Down

   By Andrew Thomason - (Illinois Statehouse News) - 9/12/2011 - Taxpayers gave Illinois a $1.2-billion shot of cash in August, or $464 million more than last August.
   Personal income tax revenue jumped by 68 percent for last month when compared with the same time in 2010, almost mirroring the personal income tax increase of 67 percent approved in January, according to a report issued by the Legislature’s Commission on Government Accountability and Forecasting, or COGFA, this week.
   Overall, the state’s revenue jumped from $1.9 billion in August 2010 to $2.2 billion last month, an increase of 13 percent.
   However, focusing on the month-to-month numbers won’t give an accurate picture of the state’s fiscal health, said Jim Muschinske, COGFA’s revenue manager and author of the August revenue report that outlines Illinois’ finances.
   “I’ve been doing this for more than 20 years, and I don’t get excited over one month. There is just too much that happens on a month-by-month basis,” Muschinske said.
   For example, income tax receipts from July through December, or the first half of fiscal 2012, might show big gains compared to last year. But those increases are only because of the income tax increase, and not because the state’s workforce or economy is doing better, according to the COGFA report.
   The state also got a one-time shot of $73 million relating to the selling of a permit for and opening of the state’s 10th riverboat casino this summer in Des Plaines.
   Higher revenue for August flowed in despite the state collecting less money from the federal government.  
   The end of the federal stimulus package and the state’s extension on paying its social service vendors caused a decline of federal funding by $264 million, or 66 percent less, to $135 million last month compared with $399 million last August.
   For the entire fiscal year, the state will lose about $1 billion in federal funding, Muschinske said. Under the federal stimulus, for every $2 the state spent on Medicaid, the federal government kicked in $1.20. But that extra 20 cents has been phased out, along with the strings attached to it.
   “What happened under the stimulus plan was that the federal government said ‘we’ll give you the higher matching rates, but in order to qualify, you are going to have to pay (social service) providers in 30 days.     
   That’s far quicker that we’ve ever paid before,” Muschinske said.
   “Now that the match is gone, part of the way to manage our resources was the decision to allow approximately $1 billion in bills to be pushed back and the payment cycled moved to more historic levels” of 60 to 90 days, he said.
   The state now has overdue bills from social service providers, schools and others totaling $3.8 billion, said Brad Hahn, spokesman for the state Comptroller’s Office.
   Legislators, when crafting the $33-billion operating budget for the state, said that any extra revenue would go toward paying off the state’s backlog of bills.
   However, Gov. Pat Quinn has said the budget sent to him doesn’t contain enough spending to operate at least 12 state agencies through the end of the fiscal year.
   Quinn could come back during the Legislature’s veto session at the end of October and ask for more money, known as a supplemental appropriation. Extra cash might keep workers from being laid off, but it also could suck up money that would have been used to pay off old bills.
   Story courtesy of Illinois Statehouse News (9/7/2011)

Man Sentenced to 66 Months for Insider Trading

   NEW YORK – 9/5/2011 - Craig Drimal was sentenced on August 31 in Manhattan federal court to 66 months in prison for his participation in an insider trading scheme in which he obtained and traded on material, nonpublic information, including information misappropriated from the law firm of Ropes & Gray, announced Preet Bharara, U.S. attorney for the Southern District of New York.
   Drimal pleaded guilty to five counts of securities fraud and one count of conspiracy on April 26, 2011. U.S. District Judge Richard J. Sullivan imposed the sentence.
   According to the indictment, a complaint previously filed in this case and statements made during the guilty plea proceeding:
   In 2007 and 2008, Drimal obtained inside information from Zvi Goffer and others about several mergers and acquisitions of public companies, and traded based on that information. The inside information included information provided by two Ropes & Gray attorneys, Arthur Cutillo and Brien Santarlas, regarding the potential acquisition of 3Com Corporation and the potential acquisition of Axcan Pharma Inc. Cutillo and Santarlas delivered the inside information to Jason Goldfarb, another attorney, who provided the inside information to Goffer. Goffer then delivered it to Drimal, who executed trades based on the inside information.
   Drimal also traded in the stock of Hilton Hotels Corporation based on inside information. He made combined profits exceeding $10 million based on these trades. Following the public announcement of the acquisition of Axcan, Drimal delivered a cash payment to Goffer for the tip.
   In addition to the prison term, Sullivan sentenced Drimal, 55, of Weston, Conn., to 66 months in prison and three years of supervised release, and ordered him to pay forfeiture in the amount of $11 million and a $600 special assessment fee.
   Cutillo, Goldfarb and Santarlas previously pleaded guilty to conspiracy and securities fraud charges in connection with this scheme. Goffer was convicted after a one month jury trial of conspiracy and securities fraud charges for his role in the scheme. Cutillo was sentenced to 30 months in prison and Goldfarb was sentenced to 36 months in prison. Santarlas’s sentencing is scheduled for Oct. 28, 2011, at 2:30 p.m. and Goffer’s sentencing is scheduled for Sept. 21, 2011, at 2 p.m.
   U.S. Attorney Bharara praised the investigative work of the FBI and thanked the Securities and Exchange Commission for its assistance with the investigation.
   This case was brought in coordination with President Barack Obama’s Financial Fraud Enforcement Task Force, on which U.S. Attorney Bharara serves as a co-chair of the Securities and Commodities Fraud Working Group.
   Assistant U.S. Attorneys Andrew Fish, Reed Brodsky and Richard Tarlowe are in charge of the prosecution.
   Source: Financial Fraud Enforcement Task Force