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US inflation slows in November in smallest spike in year

| By AFP | Beiyi Seow |

US consumer inflation eased in November, according to government data released Tuesday, bringing some relief to policymakers with the smallest annual increase in nearly a year.

Officials are closely eying the monthly inflation report for signs that painfully high consumer prices are definitively moderating at last, as surging costs of living force households to dip into their savings.

The consumer price index (CPI), a closely-watched measure of inflation, jumped 7.1 percent from a year ago, down from 7.7 percent in October, according to Labor Department figures.

But the overall number is still about three times the pre-pandemic pace.

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Prices ticked up 0.1 percent from October to November, a smaller-than-expected increase after a prior 0.4 percent jump, the latest data showed.

President Joe Biden reacted with cautious optimism about the US economy, saying the figures gave “a reason for some optimism for the holiday season and I would argue for the year ahead.”

Core prices, which exclude the volatile food and energy segments, rose 0.2 percent in November, down from a 0.3 percent pick-up in October.

“The index for shelter was by far the largest contributor to the monthly all items increase, more than offsetting decreases in energy indexes,” the Labor Department said in a statement.

Food inflation nudged up as well, underscoring the financial squeeze that households are still experiencing.

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While an improvement from before, the data likely reinforces official views that costs remain far too high, and US central bankers are poised to push on in their quest to cool the world’s biggest economy.

The Federal Reserve has raised the benchmark lending rate six times this year in hopes of lowering demand, walking a fine line between reining in prices and triggering a recession.

The lower inflation figure is likely to fuel optimism for easing in the Fed’s aggressive campaign as its policy-setting committee starts a two-day meeting Tuesday that is widely expected to culminate in a smaller rate hike.

Right direction

Consumer inflation remains much higher than the Fed’s longer-term goal of two percent, even as prices are “moving in the right direction,” said economist Rubeela Farooqi of High Frequency Economics Tuesday.

But “further sustained improvement” over the coming months could allow the Fed to slow its pace of rate hikes more, she added.

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While goods prices are decelerating, they still contribute heavily to CPI changes and a reversal of the trend will take time, she warned in an earlier analysis.

James Knightley of ING told AFP that while the asking price for rents appears to be falling in many cities, most people are still paying “considerably more” than last year.

Analysts have also been watching price increases in services, given that quickly rising wages feed into this segment and “continue to run hot,” he noted.

“This is clearly an area of concern for the Fed,” he said.

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International

China shows at the UN its “condemnation” of Israel for the “violation of Iran’s sovereignty”

The Chinese ambassador to the United Nations, Fu Cong, showed the “condemnation” of his country against the “violation of the sovereignty, security and territorial integrity of Iran” after the air attack launched by Israel against multiple targets in that country, the official newspaper Diario del Pueblo reports this Saturday.

That media echoes Fu’s speech to the UN Security Council on Friday, in which he demanded that Israel “immediately stop all its military actions.”

“China (…) opposes the expansion of conflicts, and is deeply concerned about the serious consequences that may arise from Israel’s actions. The intensification of regional tensions does not interest any of the parties involved,” said the Chinese emissary.

Beijing called on Tel Aviv and Tehran to “resolve their disputes through political and diplomatic means, and maintain peace and stability at the regional level jointly.”

In Fu’s view, the Israeli attack will have a “negative impact” on the negotiations on Iran’s nuclear program: “China has always been committed to the peaceful resolution of the Iranian nuclear issue through dialogue and consultations, and opposes the use of force, illegal unilateral sanctions and armed attacks on peaceful nuclear facilities.”

This Friday, China had already expressed its willingness to “play a constructive role” to curb the escalation of tensions and facilitate conciliation, in line with its traditional position of active neutrality in the region’s conflicts.

The Israeli attack, which according to Tehran caused dozens of deaths, including senior military commanders and at least six nuclear scientists, targeted key facilities such as the uranium enrichment plant in Natanz. Numerous civilian casualties were also reported.

Israel justified the offensive by claiming that the Iranian regime is secretly developing a program to manufacture nuclear weapons.

For his part, Iran’s supreme leader, Ali Khamenei, promised a “severe response” and assured that the attack would reveal the “evil nature” of Israel.

UN Secretary-General António Guterres also expressed concern about the bombing, at a time when Iran and the US The United States is holding talks about the Iranian nuclear program.

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International

Donald Trump’s government pauses its program of indiscriminate raides against migrants

The government of US President Donald Trump has decided to pause its campaign of discretionary roundings against migrants in certain areas due to its apparent concern about the growing unpopularity of these methods, according to The New York Times newspaper on Friday.

According to an email to which the newspaper has had access and the confirmation of US officials, the Executive has ordered the Immigration and Customs Control Service (ICE) to pause the beatings that affect the agricultural industry and the hospitality industry.

The spokeswoman for the Department of Homeland Security, Tricia McLaughlin, confirmed in a statement that “the president’s instructions” will be obeyed and the portfolio will also continue to “work to get the worst illegal foreign criminals out of the streets of the United States.”

The decision points out that this campaign of discretionary arrests to try to deport large-scale immigrants is harming industries and electoral constituencies whose support Trump wants to retain for next year’s legislative elections.

The new instructions were transmitted to ICE in an email sent last Thursday asking that “all investigations/law enforcement operations be suspended in work centers in the agricultural sector (including aquaculture and meat packing plants), restaurants and hotels.”

These new guidelines come in turn after more than a week of intense protests in Los Angeles against this immigration policy and that Trump himself admitted that the raids seem to be affecting the agricultural sector, which in states like California, where beatings have intensified, depend almost exclusively on immigrant labor.

Since his return to the White House in January, Trump has implemented an aggressive policy of hard hand against immigration and as a sample of his Cabinet officials recently held a meeting with the ICE leadership to order them to carry out 3,000 arrests a day, a mandate that seems to be behind the intensification of the raids.

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International

Trump says he knew “everything” about the attack on Iran and assures that the dialogue remains open

US President Donald Trump said on Friday that Washington “known everything” about the Israeli attack on Iran and that the dialogue on Tehran’s nuclear program “is not dead.”

“We knew everything and I tried to avoid Iran all this humiliation and death. I tried hard to avoid it because I would have loved to see an agreement,” Trump said in an interview with Reuters.

The US president insisted on what he wrote today about the attack on social networks, where he said he gave an ultimatum of 60 days to Tehran to reach an agreement.

“We knew practically everything. We knew enough to give Iran 60 days to reach an agreement and today it is already 61 days,” he explained in the interview, in which he said he did not know what the current situation of the Iranian nuclear program is after the attack launched by Israel, which also ended the lives of key military leaders of the Persian country.

Regarding the dialogue between the US and Iran about the nuclear program of the ayatollahs, Trump assured that “he is not dead”, that “an agreement is still possible” and also recalled that on Sunday a sixth round of dialogue is scheduled in Muscat (Oman) that they consider is now in the air.

“We have a meeting with them on Sunday. Now, I’m not sure if that meeting will take place, but we have a meeting with them on Sunday,” he said.

The United States and Iran have held five rounds of talks on the Iranian nuclear program since April, with Washington demanding that Tehran discard its capabilities both to manufacture an atomic bomb and to enrich uranium, something that the ayatollahs considered unacceptable.

Both Israel and Trump himself had warned of possible preventive attacks on the Persian country due to this refusal by Iran.

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