U.S. Consumer Prices Rise 0.4% In August While Phoenix Inflation Hits 2.5%

U.S. Consumer Prices Rise 0.4% In August While Phoenix Inflation Hits 2.5%

By Matthew Holloway |

The U.S. Consumer Price Index rose 0.4% in August, accelerating from July’s 0.1% increase, while annual inflation remained at 3.4%, according to the latest release from the Bureau of Labor Statistics. Gasoline prices accounted for more than one-third of the monthly increase.

In the Phoenix-Mesa-Scottsdale area, consumer prices increased 2.5% over the year ending in August, below the national rate, but eased back from June’s 2.8%. Local energy prices rose 19.1% over that period, including a 32.5% increase in gasoline prices.

Nationally, gasoline prices increased 3.9% during August, and the broader energy index rose 2.1%. Shelter costs increased 0.3%, while food prices rose 0.1%. Grocery prices were unchanged for the month, and food away from home increased 0.3%.

Core inflation, which excludes food and energy, increased 0.3% in August following a 0.2% rise in July. Over the preceding 12 months, core prices increased 2.4%, energy prices rose 16.3%, and food prices increased 2.7%.

The national monthly figures are seasonally adjusted. The annual changes are measured before seasonal adjustment.

The Joint Economic Committee (JEC) Republicans’ August inflation update, released this month, provided calculations to two decimal places. It reported monthly headline inflation of 0.40% and core inflation of 0.29%, compared with Cleveland Federal Reserve forecasts of 0.36% and 0.20%, respectively.

The committee’s calculations placed annual headline inflation at 3.40% and annual core inflation at 2.45%. Its report notes that differences in change figures can result from rounding.

Across the four regions identified in the committee’s accompanying release, annual inflation was highest in the Northeast at 3.9%, followed by the Midwest at 3.6%, the West at 3.2%, and the South at 3.1%. In its release accompanying the update, JEC Republicans reported annual inflation of 3.9% in the Northeast, 3.6% in the Midwest, 3.2% in the West, and 3.1% in the South.

Phoenix-area prices increased 0.5% over the two months ending in August. During that period, local energy prices increased 4.6%, food prices declined 1.6%, and prices excluding food and energy rose 0.5%. The local BLS figures are not seasonally adjusted and cover a two-month period.

Over the year, Phoenix-area food prices increased 1.7%, including a 1.0% increase in grocery prices and a 2.5% increase in food away from home. Local core inflation was 1.3%, while shelter prices declined 0.3%.

Inflation-adjusted earnings were mostly steady in August. Real average weekly earnings for employees on private nonfarm payrolls increased 0.16%, while real average hourly earnings declined 0.09%. Over the year, real hourly earnings declined 0.3% and real weekly earnings increased 0.3%.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Hamadeh’s Kayleigh’s Law Awaits Senate Action After Passing U.S. House

Hamadeh’s Kayleigh’s Law Awaits Senate Action After Passing U.S. House

By Matthew Holloway |

The U.S. House of Representatives passed Kayleigh’s Law in late August, introduced in April by Rep. Abe Hamadeh (R-AZ-08). The Senate Judiciary Committee has not yet scheduled action on the measure.

H.R. 8481, the Kayleigh’s Law Act of 2026, passed the House by voice vote on Aug. 31; no individual vote tally was recorded. Reps. Andy Biggs (R-AZ-05), Eli Crane (R-AZ-02), Paul Gosar (R-AZ-09), Juan Ciscomani (R-AZ-06), and David Schweikert (R-AZ-01) were original cosponsors.

The Senate companion, S. 5372, was introduced Aug. 7 by Sen. Mike Lee (R-UT) and referred to the Senate Judiciary Committee. No hearing or markup date has been posted.

The bill is named for Kayleigh Kozak, an Arizona mother of five who was sexually abused as a child by her soccer coach. In 2020, 13 years after the offender’s conviction, Kozak was brought back to court when her attacker sought to end his lifetime probation.

Arizona enacted its state version of Kayleigh’s Law through Senate Bill 1653 in 2022. The federal bill would require a court at sentencing to issue a lifetime no-contact order when a victim—or the government with the victim’s consent—requests one following a conviction for a qualifying federal violent felony or sex offense. The order could be suspended or terminated only under limited circumstances specified in the bill. Victims could not be charged a fee for its issuance.

Lee said in August that victims “often have to face their abusers in court over and over again.” Kozak said the harm caused by sexual assault is lifelong and its protections should be as well.

Hamadeh called the House vote “promise made, promise kept.”

In a post on X, Biggs wrote, “The U.S. House did its job to protect victims of certain violent crimes in passing Kayleigh’s Law this week. Now, the U.S. Senate must act before the clock runs out on us in January. We cannot fail these victims. We must send Kayleigh’s Law to the President’s desk.”

In a post quoting Biggs, Lee wrote, “Proud to have introduced Kayleigh’s Law in the Senate. Victims should not suffer years of unwanted contact with their abusers. And @RepAndyBiggsAZ is right: as with a large number of important House bills, we need to stop sitting around and PASS IT to President Trump’s desk!”

Legislation that does not become law before the 119th Congress ends in January would have to be introduced again in the next Congress.

AZ Free News contacted Lee’s office seeking a timeline for Senate Judiciary Committee consideration. No response was received by the time of publication.

Republicans hold the majority on the Judiciary Committee, which is chaired by Sen. Chuck Grassley (R-IA). The House passed the measure without recorded opposition. Its next potential steps include a committee hearing or markup on S. 5372, or Senate consideration of the House-passed bill.

Until the Senate acts, the Arizona-born proposal remains legislation and has not reached the president.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

Small Business Administration To Prioritize Defense-Critical Manufacturers As New Rules Take Effect

Small Business Administration To Prioritize Defense-Critical Manufacturers As New Rules Take Effect

By Matthew Holloway |

The U.S. Small Business Administration (SBA) announced last week that it will prioritize applications from small businesses in defense-critical manufacturing industries for its 8(a) Business Development Program as revised eligibility requirements take effect for individually owned firms. The new guidance also calls for restoring financial and business document reviews of applicants.

The priority industries include missile and space vehicle manufacturing, aircraft parts, navigation and guidance systems, electronic components, ammunition, and machine shops. Arizona’s aerospace and defense supply chain includes more than 1,250 companies.

“Arizona is a leader in the aerospace and defense industry and a hub for missiles, space, avionics, navigation, electronics, precision manufacturing, and aircraft-related production, with a supply chain of more than 1,250 aerospace and defense companies,” said SBA Pacific Regional Administrator Steven Snow. “By prioritizing qualified 8(a) applicants in defense-critical industries, SBA is helping Arizona small businesses compete for federal contracts, expand production capacity, strengthen domestic supply chains, and deliver the components and capabilities that support America’s military readiness.”

The 8(a) program provides federal contracting opportunities and business development assistance to qualifying small businesses. The SBA’s certification portal lists benefits including access to sole-source and competitive set-aside contracts, assistance from federal procurement experts, and support from business opportunity specialists.

Under the guidance, the SBA will prioritize application review and processing for businesses operating in 10 designated North American Industry Classification System categories. Along with aerospace, electronics, and ammunition manufacturers, the list includes iron and steel mills, ferroalloy manufacturing, miscellaneous fabricated metal products, and shipbuilding and repair. The priority applies to processing applications for program admission. The SBA’s announcement identifies the eligible industry codes.

“Under President Trump’s leadership and our partnership with Secretary Hegseth on the Smaller War Plants Commission, the SBA is leveraging the 8(a) Program to reindustrialize America and build out the network of small manufacturers and suppliers that equip our warfighters,” SBA Administrator Kelly Loeffler said.

The guidance supports the Smaller War Plants Commission, which the SBA and the Department of War announced August 25 as an effort to strengthen defense industrial production capacity.

A separate final rule published in August removes the regulatory presumption that members of certain racial and ethnic groups are socially disadvantaged. It establishes revised standards for individual applicants to demonstrate disadvantage.

The rule follows a 2023 federal court decision in Ultima Services Corp. v. U.S. Department of Agriculture, which found the presumption unconstitutional and prohibited the SBA from continuing to use it.

Under the revised standards, applicants must provide evidence of discrimination, bias, or favoritism affecting a racial, ethnic, or cultural group and self-certify that they belonged to the affected group and suffered material harm. The regulation defines material harm as lost access to, or diminished opportunities for, economic advancement.

The rule applies to individually owned applicants. It does not change eligibility for businesses owned by tribes, Alaska Native corporations, Native Hawaiian organizations, or community development corporations. The final rule details those distinctions.

The SBA also said it is restoring “potential for success” reviews, including comprehensive evaluations of financial records and business documents intended to assess whether applicants can perform federal contracts. The agency has posted guidance on those reviews through MySBA Certifications.

The agency will return pending applications from individually owned businesses through its “Return to Business” system so applicants can address the revised requirements and provide updated financial records. Applicants will have 45 calendar days to complete the updates and resubmit their applications, the agency said.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

AZGOP Chair Targets Hobbs Over Grocery Tax Veto, Promises More Ads On The Way

AZGOP Chair Targets Hobbs Over Grocery Tax Veto, Promises More Ads On The Way

By Matthew Holloway |

The Arizona Republican Party (AZGOP) is targeting Democratic Gov. Katie Hobbs over her veto of legislation that would have eliminated municipal grocery taxes. Party Chairman Sergio Arellano said digital advertisements are targeting undecided voters, with additional ads forthcoming. An anti-Hobbs graphic appeared in a September 8 post, as Arellano defended the party’s advertising strategy in a newsletter reported by AZFamily.

The AZGOP released its first ad against Hobbs on September 4, highlighting the governor’s veto of SB 1231, the Arizona Border Invasion Act. Arellano identified it as the party’s first ad and encouraged supporters to share it. The legislation would have created a state offense for a noncitizen entering or attempting to enter Arizona directly from a foreign nation outside a lawful port of entry.

Arellano addressed concerns about the visibility of Republican advertising in a recent newsletter, writing that “more ads are on the way.” He said the party’s online commercials were targeting undecided voters and encouraged supporters to share them.

“I know many of you have been concerned that you haven’t seen ads,” Arellano wrote, arguing that the party is being “as fiscally conservative with our donors’ contributions as we possibly can be.”

“The newsletter message is a direct response to the tens of thousands of Republicans I’ve heard from who are frustrated with Katie Hobbs’ lies and concerned that she may once again get away without being seriously challenged by the mainstream media,” Arellano said.

The station also reported criticism from former AZGOP Chair Gina Swoboda, who urged the party to deploy its resources.

“Your job is to get to zero,” she said.

AZFamily reported that Hobbs had spent more than $10 million on television advertising and that Biggs had yet to launch a traditional television campaign. The article did not provide a dollar amount for the AZGOP’s digital campaign.

State campaign-finance filings provide a partial picture of the party’s finances before the current advertising push. The Republican Party of Arizona, LLC reported $151,016.45 in cash disbursements during the first quarter of 2026, $175,829.83 during the second quarter, and $23,491.60 during the July 1–4 pre-primary reporting period.

Those reports total $350,337.88 in party disbursements from January 1 through July 4. The expenditures cover general party operations, including payroll, rent, legal services, consulting, mailings, and event costs. The three reports do not identify a specific amount spent opposing Hobbs. The party reported a cash balance of $1,114,887.48 at the close of the July 4 reporting period.

The AZGOP graphic released September 8thstates, “Katie Hobbs is LYING to your friends and neighbors every day, all day long. Tell them the truth – time and time again, Katie Hobbs chose higher prices over the needs of Arizona families. Voters know she has taken Arizona is the WRONG direction.”

The accompanying image accuses Hobbs of choosing higher prices over Arizona families.

The ad refers to legislation Hobbs vetoed on March 28, 2023. Senate Bill 1063 would have prohibited municipal taxes on food for home consumption beginning in July 2025. In her veto letter, Hobbs cited local officials’ concerns about potential service cuts and property-tax increases. She also argued that the delayed effective date would prevent immediate relief and that purchases made with SNAP and WIC benefits were already exempt.

The grocery-tax veto has become a campaign issue for Republican gubernatorial candidate Andy Biggs, who criticized Hobbs’ record after her 2022 comments about potentially supporting a repeal.

The AZGOP’s social media criticism of Hobbs has also included the Sunshine Residential Homes investigation. In a September 3 statement, Arellano questioned Attorney General Kris Mayes’ handling of allegations involving political contributions and Department of Child Safety rate increases, and urged voters to elect Biggs.

Mayes announced August 21 that the investigation had uncovered no evidence of the quid pro quo necessary to support a bribery charge. A separate investigation involving Maricopa County Attorney Rachel Mitchell and the Arizona Auditor General remains ongoing.

The next regular state party report covers July 5 through September 30 and is due October 15. That reporting period encompasses the party’s current campaign activity against Hobbs.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.

NRA Endorses Paul Gosar In Congressional Race, Gives Him ‘A’ Rating

NRA Endorses Paul Gosar In Congressional Race, Gives Him ‘A’ Rating

By Matthew Holloway |

Congressman Paul Gosar’s campaign announced Monday that the National Rifle Association Political Victory Fund (NRA-PVF) has endorsed his reelection bid and awarded him an “A” rating ahead of the November general election.

Gosar, a Republican representing Arizona’s Ninth Congressional District, faces Democrat Danielle “Dani” Sterbinsky following the state’s July 21 primary election.

“I have never wavered on the Second Amendment,” Gosar said. “Our right to keep and bear arms is not negotiable, and I have voted that way every single time. I am grateful to have the NRA standing with me.”

The NRA-PVF evaluates candidates based on their voting records, public statements, and responses to its candidate questionnaire. Its grading system defines an “A” candidate as someone who has supported NRA positions on key votes or demonstrated support for Second Amendment issues.

Gosar’s campaign said he has maintained a career “A” rating from the organization. His congressional office also listed a career “A” rating from the NRA among its career ratings as of Jan. 1, 2024. His campaign platform states his opposition to a national gun registry and other legislation he considers an infringement on gun rights.

Federal Election Commission (FEC) summaries covering campaign activity through July 1 show Gosar held a cash advantage over Sterbinsky. Gosar’s campaign reported $303,213.70 in cash on hand, while Sterbinsky’s campaign reported $25,744.84. The FEC summaries list $580,042.50 in total receipts for Gosar from Jan. 1, 2025, through July 1, 2026, and $354,382.57 for Sterbinsky from July 1, 2025, through July 1, 2026.

The Ninth District includes communities in Mohave, La Paz, Maricopa, and Yuma counties, encompassing portions of western Arizona and the Phoenix metropolitan area’s West Valley.

Gosar was first elected to Congress in 2010 after working as a dentist. His campaign’s stated priorities include federal spending cuts, a balanced budget amendment, border security, domestic energy development, and lower taxes.

Sterbinsky’s campaign website identifies her as a Navy veteran and human resources professional living in Wittmann. Her platform includes housing affordability, reducing health care and prescription drug costs, and expanding rural infrastructure, including broadband access.

Arizona’s general election is scheduled for Nov. 3. The voter registration deadline is Oct. 5.

Matthew Holloway is a senior reporter for AZ Free News. Follow him on X for his latest stories, or email tips to Matthew@azfreenews.com.