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Metro Local News from the Pacific Northwest
Issue No. 018 August 18, 2025
Economy

Inflation rises in July as tariffs ripple through the economy

A key inflation measure accelerated in July, highlighting how tariffs and broader economic pressures are affecting household budgets. The Consumer Price Index (CPI) rose 2.7% year over year, while “core” inflation, which strips out food and energy, climbed 3.1% — its fastest pace in five months. For families, that translates into higher costs across nearly every pillar of everyday spending.

Housing

Housing remains the single largest driver of consumer inflation. The shelter index increased 5.2% year over year, continuing to weigh heavily on household budgets. Rising rents and stubbornly high mortgage rates have left families with little relief, keeping housing inflation a core measure of financial strain. Because shelter costs are both unavoidable and recurring, they carry disproportionate weight in how people experience inflation day-to-day.

Food

Food prices were up 2.1% compared with July 2024. Grocery costs have stabilized somewhat, but dining out remains more expensive, as restaurants pass higher labor and ingredient costs on to customers. Even small increases hit families hard, since food spending is a constant and highly visible expense.

Energy

Energy provided rare relief, falling 1.5% over the past year, led by a 2.2% drop in gasoline. However, energy prices are volatile and closely tied to global markets. Economists caution that this reprieve may be temporary, especially as tariffs ripple through supply chains for fuel and equipment.

Health care

Medical care prices rose 2.9% year over year. Hospital services and health insurance remain persistent cost burdens, with health care inflation outpacing wage growth for many households. Because health costs are often unexpected, they carry outsized weight in household financial anxiety.


What’s driving prices higher?

Economists point to tariffs as a primary culprit. Businesses that had stockpiled goods earlier in the year are now running out of buffer, leaving them little choice but to raise prices. The cost increases are particularly visible in services, apparel, and household goods. At the same time, wages have stagnated after adjusting for inflation, leaving consumers more sensitive to price hikes. Analysts warn that if tariffs remain in place, businesses will continue to pass along costs, keeping inflation sticky despite slowing demand.

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    Headlines

    Washington unemployment steady at 4.5% as job growth slows —

    State added 10,800 jobs in July, though construction lost 11,300 compared with last year.

    Economy

    City Council considers stronger safeguards against predatory home-buying practices —

    Plan would expand state law by adding grace periods, appraisal rights, and penalties for aggressive buyers.

    Seattle City Council

    I-5 lanes reopen after Ship Canal Bridge construction  —

    Resurfacing, drainage, and joint replacement work wrapped up after a four-week project that brought full weekend closures and weeks of lane reductions.

    Transportation

    Washington sues Trump administration over $9M in climate funding cuts  —

    State AG says loss of NOAA funds jeopardizes programs preparing communities for wildfire, flooding, and other climate impacts.

    Courts

    Judge rules Medicaid data can’t be used in immigration crackdowns —

    The injunction protects records in 19 states, including Washington, where leaders argued the practice violated privacy and federal law.

    Immigration

    Seattle median home price hits $935K, a 5-year high  —

    Prices rose 10% in June from last year, with more than one-third of homes now worth $1 million or more.

    Housing

    Shipping firm fined $32K for Puget Sound oil spill  —

    Liberty Marine Corporation was penalized after a 2023 incident near Manchester State Park released 199 gallons of waste oil, which officials say was preventable and mishandled by the ship’s crew.

    Environment

    Portland Trail Blazers sold for $4 billion —

    Carolina Hurricanes owner Tom Dundon has agreed to buy the NBA team from Paul Allen’s estate and plans to keep the franchise in Portland, sources say.

    Sports
    Public Health

    King County takes next step on Capitol Hill crisis center

    King County this week advanced plans to open a new 24/7 crisis care center on Capitol Hill, submitting the proposal to the Metropolitan King County Council for approval. If approved within the next 30 days, the county expects to close on the former Polyclinic building at Broadway and Union by the end of 2025.

    The site would become the second of five planned crisis centers funded by a $1.25 billion property-tax levy voters approved in 2023. Only one center, in Kirkland, currently operates. The Capitol Hill facility would offer same-day behavioral health and substance use treatment for adults, with stays of up to 14 days, regardless of insurance or ability to pay.

    The centers are designed to provide:

    • Walk-in urgent care for people in immediate crisis
    • Same-day mental health and substance use treatment
    • Short-term stays up to 14 days for stabilization
    • Referrals and connections to long-term care
    • Support services including case management and recovery planning

    Mayor Bruce Harrell voiced support while noting neighborhood concerns about impacts. Supporters say the center will relieve pressure on emergency rooms, while critics argue the area is already overburdened by visible crises.

    Immigration

    Governor Ferguson vows to uphold immigrant protections despite federal pressure

    Gov. Bob Ferguson is rejecting pressure from U.S. Attorney General Pamela Bondi to roll back Washington’s sanctuary state laws, setting up a clash over immigration enforcement.

    In an Aug. 13 letter, Bondi warned that Washington’s policies “thwart federal immigration enforcement” and gave Ferguson until Aug. 19 to pledge compliance. The letter said noncompliance could trigger loss of federal funding, new restrictions on grants, and even potential criminal liability for officials. Washington was recently listed by the Department of Justice as a “sanctuary jurisdiction,” alongside several counties and cities.

    Ferguson responded on social media that Washington “has no intention of changing our values in the face of threats from the Trump administration.” He defended the Keep Washington Working Act, a 2019 law that limits local law enforcement’s cooperation with federal immigration authorities, saying it protects families and allows police to focus on community safety.

    Attorney General Nick Brown, also copied on the letter, has likewise defended the law as legally sound. Supporters argue it safeguards immigrant communities, while critics, including Trump administration officials, claim such laws endanger public safety.

    The governor said he will send a formal reply to Bondi by the Aug. 19 deadline, but reiterated that Washington will not abandon its sanctuary policies. The standoff underscores deep divisions between state leaders and the federal government over immigration enforcement.

    By the Numbers

    0.76”

    Inches of rain in Seattle on Friday

    That’s 78% of the city’s typical month of August rainfall (0.97”) in a single day — and it was the wettest day since March 23.

    51st

    Washington’s rank in U.S. police staffing

    For the 15th straight year, Washington has the lowest law enforcement staffing in the nation. Despite modest gains in 2024, the state remains behind all 50 states and D.C., with major cities like Seattle still rebuilding depleted forces.

    5%

    Year-over-year rise in Washington gas prices

    Washington drivers now pay an average of $4.41 per gallon, compared with the national average of $3.14. While U.S. prices fell nearly 10% since last year, Washington’s climbed — keeping the state among the most expensive in the country.

    Around Town

    Lake City

    Seattle police cleared an encampment at Virgil Flaim Park after two men were fatally shot there Monday evening. Neighbors say the camp had returned just a day after a previous sweep in June, fueling concerns about safety, drug use, and violence in the area. While some residents welcomed the removal, others worried about where the unhoused residents would go. Police are still searching for the suspect in the shooting.

    Seattle Center

    For the first time, the Indian flag was raised atop the Space Needle to mark India’s 79th Independence Day, a gesture recognizing the Indian American community’s contributions to Seattle’s tech sector. Mayor Bruce Harrell and other dignitaries joined the ceremony, while nearby landmarks—including Lumen Field, T-Mobile Park, and the Seattle Great Wheel—were illuminated in India’s tricolors. Proclamations from Seattle, King County, and other Washington cities officially designated August 15 as India Day.

    Belltown

    Seattle’s largest contemporary art center, Cannonball Arts, opened Friday in the former Bed Bath & Beyond building on Third Avenue. At 66,000 square feet, the two-story space blends traditional galleries with immersive installations, rideable sculptures, and an underground music venue. The project, backed by the Muckleshoot Indian Tribe and private funders, is an extension of Bumbershoot’s arts programming and aims to create a year-round hub for visual art, performance, and community-driven creativity in downtown.

    West Seattle

    Four masked suspects carried out a brazen $2 million smash-and-grab at Menashe and Sons Jeweler on California Avenue, shattering display cases and threatening staff with bear spray and a Taser. The daylight robbery lasted just 90 seconds before the thieves fled in a getaway car. No injuries were reported, but the longtime family-owned store will remain closed while police investigate. Authorities are urging anyone with information to contact the SPD Violent Crimes Tip Line.

    Lake City

    Seattle Center

    Belltown

    West Seattle

    Photos

    On the Web

    Embracing Mother Nature's City: Seattle nationalgeographic.com

    20 Hours on the 1 thestranger.com

    UW lab's seaweed-infused cement could slash carbon emissions knkx.org

    20 WA superintendents are reenvisioning state’s ‘broken’ K-12 funding model washingtonstatestandard.com

    Which Seattle-area industries rely most on noncitizen workers axios.com

    Washington's hydropower has created a data center boom. Some are concerned about its future. npr.org

    Quoted

    There are a million things I could write about the peak era of the Seahawks Legion of Boom defense, but perhaps the easiest explanation for just how ludicrously good that unit really was is this: […] the Seahawks made league-MVP Peyton Manning and the NFL’s all-time highest-scoring offense look like a bumbling JV squad.

    Danny Kelly, football writer

    The Ringer, ahead of the 2025 NFL season, are running “The Best NFL Team of the Quarter Century Bracket”, where the 2013 Seahawks are facing off against the 2007 New England Patriots in the finals.

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    Issue No. 017 August 11, 2025

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