International
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.
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.
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.
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.
International
U.S. strike in Caribbean kills three suspected drug traffickers
A U.S. strike on a suspected drug-smuggling vessel in the Caribbean killed three people on Saturday, according to Pentagon Chief Pete Hegseth, marking the latest in a series of attacks in international waters.
The United States has deployed ships to the Caribbean and sent fighter jets to Puerto Rico as part of a large military force that Washington says is aimed at curbing drug trafficking.
“This vessel, like all the others, was known to our intelligence for being involved in illicit narcotics smuggling,” Hegseth stated on X. “Three narcoterrorists were aboard the vessel during the attack, which took place in international waters,” he added.
Experts argue that the attacks, which began in early September, amount to extrajudicial executions, even if the targets are known traffickers.
Washington has yet to publicly provide evidence that the targeted individuals were actively smuggling drugs or posed a threat to the United States.
Hegseth said the U.S. would continue “hunting… and killing” suspected traffickers. He also shared video footage of the strike, showing the vessel being hit and engulfed in flames. As in previous videos, sections of the ship were blurred, making it impossible to verify the number of people on board.
The United Nations called on Friday for Washington to halt its attacks.
International
At least 23 killed in Sonora supermarket blast, including minors
At least 23 people were killed and 11 others injured in an explosion at a supermarket in Hermosillo, in the northern Mexican state of Sonora, local authorities reported on Saturday.
“So far, there are 23 confirmed deaths and 11 injured, including minors,” said Sonora Governor Alfonso Durazo in a video message. He added that the injured are receiving treatment in various hospitals across the city.
“I have ordered a thorough and transparent investigation to determine the causes of the incident and assign responsibility where appropriate,” Durazo said.
The explosion occurred at a Waldo’s store in downtown Hermosillo. Local authorities confirmed that the incident was not an attack nor related to any violent act against civilians.
Meanwhile, Mexico City Mayor Claudia Sheinbaum expressed her condolences on X, offering sympathy to the families and loved ones of those who lost their lives.
International
Floods in Central Vietnam leave 28 dead, thousands displaced
The death toll from heavy rains and flooding in central Vietnam has risen to 28, with six people reported missing and 43 injured, local newspaper VnExpress reported Friday night.
More than 22,100 homes remain flooded, primarily in the cities of Hue and Da Nang. Floods and landslides have destroyed or swept away 91 houses and damaged another 181, the report added.
Around 245,000 households are still without electricity, particularly in Da Nang, where over 225,000 homes are affected.
Additionally, 80 stretches of national highways are blocked or disrupted due to landslides. Authorities expect the flooding to continue for another day or two in the region.
U.S. strike in Caribbean kills three suspected drug traffickers
At least 23 killed in Sonora supermarket blast, including minors
Floods in Central Vietnam leave 28 dead, thousands displaced
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