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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

Pope Francis meets former Gaza hostages

Pope Francis met on Thursday at the Vatican with 16 Israelis who had been held hostage in Gaza for months by the Islamist group Hamas, according to the official Vatican news website.

The group consisted of ten women, four men, and two children, as reported by the same source. Several of the former hostages showed the Argentine pontiff banners or photos of their loved ones who remain in captivity.

Francis had previously met with the families of hostages in April this year and November 2023, but this was the first time he had met with individuals who had personally endured captivity.

Since the conflict between Israel and Hamas began, the pope has repeatedly called for the immediate release of Israeli hostages, while also condemning the suffering of the Palestinian population.

The war erupted on October 7, 2023, when Islamist militants attacked southern Israel, killing 1,206 people, mostly civilians, and kidnapping 251, according to an AFP tally based on official Israeli figures that include hostages who died in captivity.

Of the kidnapped, 97 are still being held in Gaza, but the Israeli military estimates that 34 of them have died.

The military offensive launched by Israel in response has killed at least 43,736 people in the Gaza Strip, mostly civilians, according to data from the Ministry of Health in the Hamas-governed territory.

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International

Israeli airstrikes on Damascus kill 15 and injure 16, including women and children

Israeli forces carried out airstrikes on residential buildings in the Syrian capital, Damascus, and its surroundings on Thursday, resulting in at least 15 deaths and 16 injuries, according to Syria’s Ministry of Defense and state television.

The ministry stated that around 3:20 p.m. local time (12:20 GMT), the Israeli military launched an aerial attack from the direction of the occupied Golan Heights, targeting several residential buildings in the Mazzeh neighborhood in western Damascus and the Qudsaya suburb to the northwest of the capital.

The airstrikes “resulted in the death of 15 people and injuries to 16 others, including women and children,” based on initial estimates, in addition to significant damage to private property and civilian buildings, the ministry added.

Meanwhile, state television reported Israeli airstrikes on three buildings in Mazzeh and another on a building in an educational complex located in a residential area of Qudsaya.

Following the strikes, loud explosions were heard throughout the city, and thick plumes of smoke could be seen rising from the targeted locations. Ambulances and emergency services rushed to the scene to attend to the victims.

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Drug trafficker dies after boat collision with Guardia Civil Vessel in Sanlúca

Three people were on the boat that collided with a Guardia Civil vessel around midnight at the mouth of the Guadalquivir River in Sanlúcar de Barrameda, near the Andalusian city of Cádiz, a spokesperson for the Civil Guard reported.

Two officers sustained “contusions,” the spokesperson explained.

The drug traffickers managed to bring the boat to shore, where one of them was “abandoned” severely injured. The other two fled.

The Civil Guard officers attempted to resuscitate the victim before transporting him to Sanlúcar de Barrameda, but he ultimately died early in the morning.

The other two suspects took advantage of the officers’ absence while they were taking the victim and returned to set their boat on fire.

The collision occurred very close to the site of another accident on September 1, where a drug trafficker died following a Guardia Civil pursuit.

The suspects’ boat traveled “400 meters” before crashing head-on and “at full speed” into the riverbank, where a hundred bundles of hashish were found.

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