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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

Austrian man arrested in Croatia with deceased woman as passenger in his car

A 65-year-old Austrian citizen was arrested at a border checkpoint in Croatia after attempting to enter the country in his car with a deceased woman sitting as a passenger, police announced on Tuesday.

The man was detained in a routine check in late November in Gunja, a border area separating Bosnia from Croatia, the police told AFP. Suspicious because they saw “no consciousness or movement” from the passenger, Croatian officers called a doctor, who confirmed the death of the 83-year-old woman, also Austrian, according to her identification.

The woman’s relationship to the suspect is unknown. She had died in Bosnia, and the man intended to repatriate her body to Austria to “avoid the formalities related to transporting a corpse,” according to the police. Croatian media reported that the man was her legal guardian.

Once her death was confirmed, a funeral service took charge of the body.

 

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International

Colombian nationals arrested for human trafficking and disappearance of migrant boat

 

Colombian authorities arrested two nationals accused of the illegal trafficking of migrants to the United States and of endangering lives due to the disappearance of a boat with 40 people aboard, U.S. Department of Justice officials reported on Tuesday.

Hernando Manuel de la Cruz Rivera Orjuela, 52, and Luis Enrique Linero Pinto, 40, both Colombian citizens, were arrested on December 13 in Colombia at the request of the United States for their alleged involvement in a “transnational human trafficking operation,” the department said in a statement.

According to the charges, the detainees were transporting migrants to San Andrés Island in the Caribbean, where they would then be taken by boat to Nicaragua. The goal was to reach the United States through Central America and Mexico.

The accused are said to have advised the migrants on how to reach San Andrés Island, where they personally received them, arranged accommodations, and “took them to the boats that transported them to Nicaragua so they could enter the United States illegally,” the statement reads.

“These defendants put several migrants on the boat that disappeared off the coast of Nicaragua in 2023,” said Deputy Attorney General Nicole M. Argentieri, head of the U.S. Department of Justice’s Criminal Division, as cited in the statement.

Both men are “directly and personally responsible for the illicit trafficking of migrants on that vessel,” according to the indictment dated October 23.

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International

Homemade landmine explosion in Michoacán kills two soldiers, injures five

Two soldiers were killed and five others were injured by the explosion of homemade landmines planted by a criminal group in a mountainous area of the Mexican state of Michoacán (west), the Secretary of Defense reported on Tuesday.

The attack occurred on Monday morning in the municipality of Cotija, a border area between Michoacán and the state of Jalisco, when the military was conducting a reconnaissance mission after receiving information about an armed camp in the area, explained Secretary General Ricardo Trevilla.

“At that moment, an improvised explosive device detonated. Unfortunately, two soldiers lost their lives, and five others were injured,” the military leader detailed. The affected soldiers were airlifted to hospitals in the region by a military helicopter, while the rest of the team continued with the reconnaissance of the area.

Trevilla stated that before the explosion, the military unit had located the dismembered bodies of three people, and upon continuing the mission, they confirmed the camp was abandoned.

Asked about the individuals responsible for placing the explosives, the general suggested they could be criminals linked to the local group Cárteles Unidos, which operates in Michoacán and uses these tactics in their territorial dispute with the Jalisco New Generation Cartel, one of the most powerful criminal organizations in the country.

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