The economy, inflation and how those forces could impact the lives of Americans were front and center over the past week. Trips to the grocery store and gas station are more painful than they were last year, and rising costs are impacting the decisions of both households and businesses.
Here’s a snapshot of prominent economic data and news that occurred over the past week and what it potentially means for you.
U.S. inflation accelerated last month as gas prices spiked in the wake of renewed fighting in the Middle East, underscoring the affordability challenges that are top of mind for many voters as midterm elections near.
The Labor Department said Friday that the consumer price index rose 3.4% last month compared with a year ago, the same as in July. But on a monthly basis, inflation accelerated, as costs jumped 0.4% from July to August, up from an increase of just 0.1% the previous month.
The figures show that inflation remains stubbornly elevated, more than five years after prices first soared as the economy emerged from the COVID pandemic. Persistent inflation has presented a major challenge for the inflation-fighters at the Federal Reserve and has soured many voters on the Trump administration’s economic management.
Diesel prices in the U.S. hit yet another record on Friday, soaring past $6 a gallon on average as Washington’s war with Iran disrupts the world’s flow of fuel.
The national average of $6.05 is up from $5.85 last week and $3.70 this time last year, according to motor club AAA.
Higher diesel prices mean more expensive transportation for a long list of everyday goods. That’s because diesel is used for many freight and delivery networks. And some businesses have already passed along steeper costs to consumers in the form of added fees on online orders and packages in the mail.
Wholesale inflation picked up last month after cooling earlier this summer as higher oil and gas prices stemming from the Iran war keep costs elevated.
The Labor Department’s producer price index — which captures inflation before it reaches consumers — rose 5.4% in August from a year ago, up from 4.8% in July, the government said Thursday. Annual wholesale inflation peaked this year at 5.9% in May after the Iran conflict raised energy costs. On a monthly basis, wholesale prices increased 0.4% from July to August, after a 0.1% increase the previous month.
Inflation has shown some signs of easing in recent months but is still high, frustrating consumers who are struggling with more expensive gas, groceries, clothing and other essentials. U.S. oil prices topped $100 a barrel Thursday on renewed fighting in the Middle East, while President Donald Trump has intensified a trade war with Canada, a sign tariffs still could push up costs. Rising prices pose a political problem for the Trump administration and Republicans running in the midterm elections.
Sales of previously occupied U.S. homes declined in August to their slowest annual pace in more than a year as home shoppers grappled with rising mortgage rates and home prices.
Existing home sales fell 2% last month from July to a seasonally adjusted annual rate of 3.98 million units, the National Association of Realtors said Thursday. This is the third straight monthly decline.
Sales also fell 1.2% compared with August last year. The latest sales tally is just shy of the 4 million pace economists were expecting, according to FactSet.
Mortgage rates rose for the third week in a row, pushing the average long-term U.S. home loan rate to its highest level in over 14 months.
The benchmark 30-year fixed rate mortgage rose to 6.76% from 6.71% last week, mortgage buyer Freddie Mac said Thursday. One year ago, the average rate was 6.35%.
Higher mortgage rates can add hundreds of dollars a month in costs for borrowers, limiting homebuyers’ purchasing power. As rates rise, that can also lead prospective home shoppers to delay buying a home, one reason U.S. home sales remain largely stagnant again this year.
The average rate is now the highest it’s been since June 26, 2025, when it was at 6.77%.
Borrowing costs on 15-year fixed-rate mortgages, often sought by borrowers refinancing a home loan, also rose this week. That average rate increased to 6.09% from 6.04% last week. A year ago, it was at 5.5%.
Slightly fewer Americans filed for unemployment claims last week as jobless claims remain at historically low levels and layoffs are still relatively rare.
Filings for benefits dipped to 206,000 last week from a revised 207,000 the week before, the Labor Department reported Thursday. The four-week average of claims, which smooths out week-to-week volatility, also fell modestly to 206,000.
Claims for jobless benefits are a proxy for layoffs, and economists watch them because they can be a sign of where the job market is headed. For the past year, claims have mostly stayed within a historically low range of 200,000 to 230,000 a week.
U.S. stocks rebounded Friday after oil prices eased, but markets struggled to end the week positive. An update on inflation across the United States that came in close to economists’ expectations also helped calm the market.
The S&P 500 rose and was on track to break a four-day losing streak, its longest since June. The Dow Jones Industrial Average and the Nasdaq also climbed.
They got some help from a pullback in oil prices, which jumped earlier this week to their highest levels since May because of the ongoing war with Iran. The price for a barrel of Brent crude, the international standard, fell 3% to $104.42 after getting near $110 overnight.
FILE - A sold sign is posted outside a newly constructed luxury home in Wellesley, Mass., Aug. 25, 2009. (AP Photo/Charles Krupa, File)
The per-gallon prices for the various grades of fuel available is displayed on a sign outside a Conoco gasoline station Wednesday, Sept. 9, 2026, in Denver. (AP Photo/David Zalubowski)
LOS ANGELES (AP) — The U.S. Justice Department failed to secure felony convictions against most of the 102 protesters arrested in four major cities last year on charges of assaulting federal authorities — a record far below the norm in federal assault prosecutions.
All of the dozen cases that made it to trial, mostly in Los Angeles, ended in acquittal, mistrial or dismissal. Experts say that's surprising for a department known for its ability to win at trial. The last three felony assault cases, in LA and Portland, will go to trial this fall.
The dismal record has raised questions about rushed investigations and aggressive charging tactics by prosecutors under pressure to show the Trump administration is cracking down on people who assault law enforcement. It comes as the Justice Department is facing broader setbacks in politically charged investigations, with grand juries repeatedly refusing to return indictments and trial juries granting acquittals.
“Prosecutors tend to win because they control what cases they pursue and they have a lot of resources and discretion,” said Mary Fan, a former federal prosecutor and law professor at the University of Washington.
The fact that the government failed to win any felony assault convictions at trial calls into question “whether or not these charges should have ever been brought in the first place,” she said.
The Associated Press' analysis focused on arrests made during protests last summer and fall in LA, Chicago, Portland, Oregon, and Washington, D.C. — cities with significant protests where President Donald Trump sought to or successfully deployed the National Guard.
Then-Attorney General Pam Bondi said those who interfered with federal law enforcement would face “severe consequences.”
Most of the arrests — 102 — were for felony assault on a federal officer, which can carry a sentence of up to 20 years in prison. Of those cases, 41% were dismissed and 34% were pleaded down to misdemeanors. Ten people pleaded guilty to felony assault. Nine people got prison time.
Of those arrested on other charges, seven were sentenced to prison for offenses including arson and obstructing law enforcement. A handful of defendants have diversion agreements, meaning their case will be dismissed if they demonstrate good behavior.
The AP's analysis shows that the Justice Department’s record failed to meaningfully improve since December, when an initial assessment showed early struggles to prosecute people on the charges for which they were arrested.
The Justice Department said in a statement that federal prosecutors are right to prioritize cases against people accused of assaulting federal officers and that “each case is based on the facts.”
“If there are mitigating factors identified in a case, then prosecutors must also act appropriately to inform the court, and in some cases downgrade or drop charges," the department said.
It’s rare for federal prosecutors to lose at trial. In 2024, 82% of defendants charged with felony or misdemeanor assault were convicted at trial or with a plea deal, according to data from the Administrative Office of the U.S. Courts. AP’s analysis found that less than half of the protesters charged for either felony or misdemeanor assault were convicted.
In Portland, a jury couldn’t reach agreement on felony assault charges for Oriana Korol, who was playing clarinet in a marching band demonstrating outside the city’s ICE building last October when a scuffle involving officers broke out. Officers pepper sprayed her and pushed her to the ground, where she struck one with her foot, according to court documents.
After a mistrial, prosecutors filed a reduced misdemeanor assault charge. She pleaded guilty and was sentenced Sept. 1 to time served and one year of supervised release.
Her attorneys wrote in a court filing that she “has accepted responsibility for the bad choices she made over a few seconds that caused no injury.”
Jonathan Caravello, a lecturer at California State University Channel Islands, was acquitted of assault on a federal officer after a three-day trial. He was accused of throwing a tear gas canister deployed by immigration agents back at them while protesting a raid at a Southern California cannabis farm.
Caravello said he was trying to get the canister away from the crowd. Videos showed he had tossed it high above officers’ heads and it landed far behind them. The jury acquitted Caravello after a quick deliberation.
“They’re trying to get a chilling effect out of these charges,” said Caravello, who turned down a misdemeanor plea deal.
Michael Rabbitt was among six co-defendants accused of felony conspiracy to impede a government vehicle from accessing an ICE facility near Chicago last September.
The vehicle slowly advanced despite being surrounded by protesters, leading some to put their hands on it, Rabbitt said.
After the government dismissed charges against two of the defendants, defense attorneys requested transcripts of the grand jury proceedings that led to the conspiracy indictment. The government eventually dropped the conspiracy charge and proceeded on misdemeanor counts of impeding a federal officer.
The judge later reviewed the unredacted transcripts and admonished prosecutors for improper behavior before the grand jury. The charges were dismissed days before trial.
Rabbitt said he was proud they fought the charges.
“This case was bigger than us,” he said. “I’m proud that we won this case, not just for us, but for protesters across the country.”
Though many federal criminal cases end in plea deals, some legal experts say it's rare for felony assault to be pleaded down and may signal overcharging — filing a more severe initial charge so defendants will be more willing to plead guilty to one with a lighter sentence.
“I think when prosecutors bring charges ethically, they should be prepared to prove them beyond a reasonable doubt,” said Laurie Levenson, a former federal prosecutor who is a professor at Loyola Law School in Los Angeles.
The U.S. Attorney’s office overseeing Los Angeles said it brought the prosecutions in response to a “wave of violence against law enforcement officers who were doing their jobs." It voluntarily dismissed charges against some defendants after further investigation, it said.
LA prosecutors have arrested three additional people for felony assault at immigration-related protests this year. One pleaded guilty to a felony and two to misdemeanors.
In Chicago, all but one of 19 felony assault cases were dismissed. The U.S. Attorney’s offices in the Northern District of Illinois, District of Columbia and Oregon did not respond to requests for comment.
A man accused of throwing a Molotov cocktail at a hotel outside Los Angeles where federal authorities were staying was sentenced to five years in prison. Two others were sentenced to more than three years after pouring lighter fluid on a burning California Highway Patrol vehicle.
Federal judges sentenced eight people to decades in prison for their participation in a demonstration outside a detention center in Texas last July where a police officer was shot in the neck.
Three people were convicted at trial of conspiracy to impede or injure an officer for protesting outside a detention facility in Spokane, Washington, last June. The Spokane and Texas cases were not included in AP’s analysis because they did not occur in one of the four cities where Trump tried to or deployed troops.
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Rush reported from Portland, Oregon. Associated Press writers Eric Tucker and Alanna Durkin Richer contributed from Washington.
Jonathan Caravello, a lecturer at California State University Channel Islands, sits for a photo in Ventura, Calif., Friday, Aug. 28, 2026. (AP Photo/Jae C. Hong)
FILE - Protesters clash with authorities in downtown Los Angeles, June 8, 2025, following the night's immigration raid protest. (AP Photo/Jae Hong, File)
FILE - Protesters confront federal law enforcement agents outside the Metropolitan Detention Center on June 6, 2026, commemorating federal immigration raids and community protests one year ago in Los Angeles. (AP Photo/Jill Connelly, File)
Michael Rabbitt poses for a photo at his home in Chicago, Thursday, Aug. 27, 2026. (AP Photo/Nam Y. Huh)
