A key inflation measure in the US soared to a 40-year high in September, a sharp rise that piles additional political pressure on the Democrats and will all but ensure the Federal Reserve continues its aggressive rate increases.
The core consumer price index, which excludes food and energy, increased by 6.6 per cent from a year ago, the highest level since 1982, Labour Department data showed on Thursday. From a month earlier, the core CPI climbed 0.6 per cent for a second month.
Stock were sharply lower at the opening bell, with the technology-heavy Nasdaq slumping more than 3 per cent.
The overall CPI increased 0.4 per cent last month, and was up 8.2 per cent from a year earlier. The median forecasts in a Bloomberg survey of economists had called for a 0.4 per cent monthly rise in the core and a 0.2 per cent gain in the overall measure.
Thursday's report is a blow for President Joe Biden, whose handling of the economy is viewed unfavourably by many US voters.
A poll conducted for CNN by SRSS showed found less than a third of Americans approve of how the president is handling inflation, piling pressure on his Democratic Party less than a month before they are expected to lose control of the House of Representatives in midterm elections.
“Americans are squeezed by the cost of living: that’s been true for years, and they didn’t need today’s report to tell them that. It’s a key reason I ran for president,” Mr Biden said.
“Working to give middle class families some breathing room in dealing with their costs is critical.”
Srijan Katyal, the global head of strategy and trading services at the international broker ADSS, said the latest CPI figures show inflation is still on the rise, picking up pace over previous months.
“Crucially, the annual rate of core inflation of 6.6 per cent, which represents a 40-year high and stands nearly double the long-term average of 3.65 per cent, might suggest that Fed’s fight against inflation has a long way ahead,” he said.
The increase in prices was broad based. Shelter, food and medical care indexes were the largest of “many contributors”, the report said. Prices for petrol and used cars, however, declined.
The report stresses how high inflation has broadened across the economy, eroding Americans’ incomes and forcing many to dip into their savings and rely on credit cards to keep up.
Even with the minor dip inflation took versus last month, “prices are still too high”, Mr Biden said.
While consumer price growth is expected to moderate in the coming months, it will be a slow trek down to the Fed’s goal.
The Fed raised its short-term interest rate in September to the range of 3 per cent to 3.25 per cent, and signalled it could increase to 4.25 to 4.5 per cent by the end of the year. The Federal Open Market Committee “expected inflation pressures to persist in the near-term”, minutes released from the two-day meeting showed.
It has been the Fed's most aggressive tightening campaign since the 1980s, but the labour market and consumer demand have remained resilient.
The unemployment rate returned to a five-decade low in September and businesses continue to raise pay to attract and retain the employees needed to meet household demand.
The committee next meets next month, where it is expected to raise its short-term rate by three-quarters of a point for a fourth consecutive time.
Bloomberg contributed to this report.
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MATCH INFO
Newcastle United 1 (Carroll 82')
Leicester City 2 (Maddison 55', Tielemans 72')
Man of the match James Maddison (Leicester)
Key facilities
- Olympic-size swimming pool with a split bulkhead for multi-use configurations, including water polo and 50m/25m training lanes
- Premier League-standard football pitch
- 400m Olympic running track
- NBA-spec basketball court with auditorium
- 600-seat auditorium
- Spaces for historical and cultural exploration
- An elevated football field that doubles as a helipad
- Specialist robotics and science laboratories
- AR and VR-enabled learning centres
- Disruption Lab and Research Centre for developing entrepreneurial skills
Conflict, drought, famine
Estimates of the number of deaths caused by the famine range from 400,000 to 1 million, according to a document prepared for the UK House of Lords in 2024.
It has been claimed that the policies of the Ethiopian government, which took control after deposing Emperor Haile Selassie in a military-led revolution in 1974, contributed to the scale of the famine.
Dr Miriam Bradley, senior lecturer in humanitarian studies at the University of Manchester, has argued that, by the early 1980s, “several government policies combined to cause, rather than prevent, a famine which lasted from 1983 to 1985. Mengistu’s government imposed Stalinist-model agricultural policies involving forced collectivisation and villagisation [relocation of communities into planned villages].
The West became aware of the catastrophe through a series of BBC News reports by journalist Michael Buerk in October 1984 describing a “biblical famine” and containing graphic images of thousands of people, including children, facing starvation.
Band Aid
Bob Geldof, singer with the Irish rock group The Boomtown Rats, formed Band Aid in response to the horrific images shown in the news broadcasts.
With Midge Ure of the band Ultravox, he wrote the hit charity single Do They Know it’s Christmas in December 1984, featuring a string of high-profile musicians.
Following the single’s success, the idea to stage a rock concert evolved.
Live Aid was a series of simultaneous concerts that took place at Wembley Stadium in London, John F Kennedy Stadium in Philadelphia, the US, and at various other venues across the world.
The combined event was broadcast to an estimated worldwide audience of 1.5 billion.
Results
Female 49kg: Mayssa Bastos (BRA) bt Thamires Aquino (BRA); points 0-0 (advantage points points 1-0).
Female 55kg: Bianca Basilio (BRA) bt Amal Amjahid (BEL); points 4-2.
Female 62kg: Beatriz Mesquita (BRA) v Ffion Davies (GBR); 10-2.
Female 70kg: Thamara Silva (BRA) bt Alessandra Moss (AUS); submission.
Female 90kg: Gabreili Passanha (BRA) bt Claire-France Thevenon (FRA); submission.
Male 56kg: Hiago George (BRA) bt Carlos Alberto da Silva (BRA); 2-2 (2-0)
Male 62kg: Gabriel de Sousa (BRA) bt Joao Miyao (BRA); 2-2 (2-1)
Male 69kg: Paulo Miyao (BRA) bt Isaac Doederlein (USA); 2-2 (2-2) Ref decision.
Male 77kg: Tommy Langarkar (NOR) by Oliver Lovell (GBR); submission.
Male 85kg: Rudson Mateus Teles (BRA) bt Faisal Al Ketbi (UAE); 2-2 (1-1) Ref decision.
Male 94kg: Kaynan Duarte (BRA) bt Adam Wardzinski (POL); submission.
Male 110kg: Joao Rocha (BRA) bt Yahia Mansoor Al Hammadi (UAE); submission.
Three tips from La Perle's performers
1 The kind of water athletes drink is important. Gwilym Hooson, a 28-year-old British performer who is currently recovering from knee surgery, found that out when the company was still in Studio City, training for 12 hours a day. “The physio team was like: ‘Why is everyone getting cramps?’ And then they realised we had to add salt and sugar to the water,” he says.
2 A little chocolate is a good thing. “It’s emergency energy,” says Craig Paul Smith, La Perle’s head coach and former Cirque du Soleil performer, gesturing to an almost-empty open box of mini chocolate bars on his desk backstage.
3 Take chances, says Young, who has worked all over the world, including most recently at Dragone’s show in China. “Every time we go out of our comfort zone, we learn a lot about ourselves,” she says.
F1 The Movie
Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem
Director: Joseph Kosinski
Rating: 4/5
Ticket prices
- Golden circle - Dh995
- Floor Standing - Dh495
- Lower Bowl Platinum - Dh95
- Lower Bowl premium - Dh795
- Lower Bowl Plus - Dh695
- Lower Bowl Standard- Dh595
- Upper Bowl Premium - Dh395
- Upper Bowl standard - Dh295
The National's picks
4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young
Tearful appearance
Chancellor Rachel Reeves set markets on edge as she appeared visibly distraught in parliament on Wednesday.
Legislative setbacks for the government have blown a new hole in the budgetary calculations at a time when the deficit is stubbornly large and the economy is struggling to grow.
She appeared with Keir Starmer on Thursday and the pair embraced, but he had failed to give her his backing as she cried a day earlier.
A spokesman said her upset demeanour was due to a personal matter.
What can victims do?
Always use only regulated platforms
Stop all transactions and communication on suspicion
Save all evidence (screenshots, chat logs, transaction IDs)
Report to local authorities
Warn others to prevent further harm
Courtesy: Crystal Intelligence
UAE currency: the story behind the money in your pockets
THE CLOWN OF GAZA
Director: Abdulrahman Sabbah
Starring: Alaa Meqdad
Rating: 4/5
LILO & STITCH
Starring: Sydney Elizebeth Agudong, Maia Kealoha, Chris Sanders
Director: Dean Fleischer Camp
Rating: 4.5/5
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