Key US inflation measure ticks higher for first time since March
A key measure of US inflation has risen for the first time since March, underlining its bumpy ride down to lower levels,The consumer price index (CPI), which measures price growth across a basket of goods, ticked up to an annual pace of 2,6% in October – from 2,4% in September, which had been the slowest rate in more than three years,Stripping out volatile food and energy costs, the closely watched “core” inflation index held firm at 3.
3%,The reading was in line with economists’ expectations,Though inflation has fallen dramatically since peaking at a four-decade high in summer 2022, many Americans are still under pressure after years of price increases,Frustration over the cost of living appeared to play a major role in the election, with exit polls indicating that the majority of Republican voters were frustrated with the US economy and their financial situation,On the campaign trail, Donald Trump proffered tax cuts and tariffs as solutions, but questions have been raised about what such policies will actually mean for inflation.
The president-elect has pledged to enact tariffs of at least 10% on all US imports, a policy that many economists say would probably lead to inflation going up as much as 5.1%, according to the Budget Lab at Yale.The Federal Reserve cut interest rates for the first time in four years in September, a key turning point in its battle to bring down inflation.It lowered rates again last week, to their lowest level since February 2023.At a press conference, the Fed chair, Jerome Powell, said the central bank “has gained confidence that we’re on a sustainable path down to 2%”, its target for inflation, but added: “The job’s not done.
”The Fed has been trying to carry out its “dual mandate”, managing price increases without triggering higher rates of unemployment.The labor market has slowed significantly over the last few months, with the US adding just 12,000 jobs in October.After hitting a low of 3.4% in February 2023, the unemployment rate in October was 4.1% – still a low rate, comparable with pre-pandemic levels.
When asked whether the outcome of the election affects the Fed’s decision on interest rates, Powell said officials “don’t know what the timing and substance of any policy changes will be.We therefore don’t know what the effects on the economy would be.”
UK will allay Trump concerns over Chagos Islands, says minister, as Priti Patel says Tories opposed to deal– as it happened
Stephen Doughty, a Foreign Office minister, was replying to Nigel Farage about the Chagos Islands. He said that, if the UK had not negotiated an agreement with Mauritius, “a legally binding decision against the UK [on sovereignty] seemed inevitable”. He said:I fundamentally disagree with what [Farage] has had to say.Let me be absolutely clear, this government inherited a situation where the long-term secure operation of this crucial military base [Diego Garcia] was under threatInternational courts were reaching judgments. International organizations were taking steps not to undermine Mauritian sovereignty, and this threatened the secure and effective operation of the base
Kemi Badenoch is her own worst enemy … and a gift for Keir Starmer and Labour | John Crace
On balance, Keir Starmer can probably live with this. The first four months of his time in office may not have been quite as straightforward as he would have liked – he must have been hoping for a six-month honeymoon period – but at least he can tick off prime minister’s questions as something he doesn’t have to worry much about.Kemi Badenoch is turning out to be the gift that keeps on giving … to the Labour party. Put simply, the more you get to see of her the less there appears to be.Behind her rather patronising, condescending facade there’s a largely empty interior
Labour tells watchdog of police failures over intimidation of MP and supporters
Police failed to intervene when the family of Shabana Mahmood, now the justice secretary, and her supporters faced intimidation during this year’s general election campaign, Labour has told the elections watchdog.In a document seen by the Guardian, party officials said officers from West Midlands police left the count on polling day before Mahmood, a close ally of Keir Starmer, and members of her family were barracked by political opponents in the seat of Birmingham Ladywood.The alleged incidents happened amid a tense campaign between Mahmood and Akhmed Yakoob, the solicitor who campaigned primarily against Labour’s policies on Israel-Palestine.Officers declined on three occasions to intervene after intimidation of Mahmood’s canvassers by supporters of Yakoob, the submission to the Electoral Commission said. It is also claimed that a Labour canvasser who was a black woman was told by a Yakoob supporter she should not be in a mainly Asian area because the residents were “not her people”
Peter Mandelson’s consultancy advised Shein until early 2024
Peter Mandelson’s consultancy Global Counsel advised the Chinese fast fashion company Shein until earlier this year, the Guardian can disclose.The retail company contracted Global Counsel until earlier in 2024, though it never appeared on Global Counsel’s list of clients published by the Office of the Registrar of Consultant Lobbyists (ORCL).Lobbyists are only required to declare clients to the ORCL if they communicate directly with ministers or permanent secretaries on their behalf. A spokesperson for Global Counsel said: “Global Counsel’s submissions to ORCL reflect the requirements of the [2014 Lobbying] Act.”Shein declined to comment, but a company source confirmed that its government relations team contracted Global Counsel until earlier this year
Sue Gray rejects envoy role amid warnings Keir Starmer was to withdraw offer
Sue Gray has decided not to take up the post of nation and regions envoy after it became clear Keir Starmer was planning to withdraw his offer, the Guardian understands.Sources said the prime minister’s former chief of staff, who was on a “short break” between roles after standing down almost six weeks ago, had been told No 10 was likely to rescind the job offer before she had even taken it up.Downing Street insiders had grown concerned about the media attention that would follow Gray, which could have made it harder for her to carry out the role. They were also unclear about what exactly the job would entail.Sources told the Guardian that Starmer, who is in Baku at the Cop29 climate summit, was expected to give Gray a peerage
Green party says Starmer must do more to cut energy use to meet net zero targets – as it happened
The Green party has said that, if Keir Starmer wants to achieve his net zero targets, he will need to do more to get people to cut their energy use. Responding to Starmer’s announcement about a new emissions reduction target for 2035, the Green party MP Ellie Chowns said:The announcement of an 81% cut in emissions by 2035 is welcome – we need to remove fossil fuels from our economy as rapidly as possible.However, the transition to clean energy needs to be matched by moves on energy reduction. We need a mass home insulation programme and large-scale investment in public transport and active travel. Instead, we have seen Labour downgrade the retrofitting of homes, fail to make solar panels on new builds mandatory, hike bus fares by 50% and offer only loose change for walking and cycling
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