Consumers could face price rises of 20% in 2025, trade experts warn
The price of household staples including food and drink could climb by as much as 20% in 2025 if challenges with sourcing and transporting goods continue, an industry body has warned.The cost of electronics, machinery, chemicals and petroleum products could also rise, said the Chartered Institute of Procurement and Supply (CIPS), as a result of geopolitical instability, including tensions in the Middle East, supply chain disruption and cybersecurity issues.Buying and supplying items including food and drink could cost businesses as much as a fifth more this year, which they will pass on to consumers, according to the international trade association, which represents 64,000 member organisations in procurement and supply chains across 150 countries.The cost of everyday products could be pushed even higher if Donald Trump follows through on threats to apply tariffs to goods entering the US after his inauguration as president on 20 January.International shipping costs have been rising in recent months as global freight companies faced a string of challenges in moving goods around the world.
Tensions in the Middle East and attacks on vessels travelling through the Red Sea by Houthi rebels prompted many major shipping firms to re-route their vessels around the Cape of Good Hope, adding cost and time to journeys.Tens of thousands of port workers on the east coast of the US are threatening to reprise their industrial action, following last October’s strike, after they reopened contract negotiations with their employers.Ben Farrell, the chief executive of CIPS, said: “What is clear from our research is that there are a number of strategic challenges that are likely to disrupt the smooth flow of goods and services … These will present particular challenges for consumers, who are likely to be disproportionately impacted unless these issues are managed effectively.”The prospect of Trump following through on his threats to impose tariffs of 10% on global imports into the US, along with a higher 60% tariff on Chinese goods has already prompted some companies to bring forward container shipments of goods to avoid such changes.However, pre-emptive measures such as stockpiling would only temporarily delay the impact of price rises, trade experts said, warning that any new levies could push up costs, disrupt trade flows, and spark retaliation against US exports.
Sign up to Business TodayGet set for the working day – we'll point you to all the business news and analysis you need every morningafter newsletter promotionThe cost of machinery, chemicals, computer components and metals for businesses could rise by between 5% and 20% in coming months, a recent CIPS member survey found, without factoring in the cost of the tariffs themselves.“The impact of US tariffs on trade flows, giving rise to increased political tension, the global war for talent – these and other issues will need deft handling if growth as well as consumer confidence across the major markets is to be maintained,” Farrell said.
UK 10-year borrowing costs hit highest level since 2008, as Rachel Reeves’s fiscal headroom evaporates – business live
Director of the Institute for Fiscal Studies Paul Johnson has confirmed that the bond market selloff risks wiping out Rachel Reeves’s wriggle room - and potentially forcing her to make spending cuts.Speaking to the Guardian, as the yield on 10-year UK debt hit its highest level since 2008, Johnson says:“Broadly speaking what’s happened in bond markets since the budget is roughly speaking enough to wipe out the very small amount of headroom Rachel Reeves left herself.”[this is the headroom to meet the chancellor’s fiscal rules, which include having debt falling as a share of the economy in five year’s time. In last autumn’s budget, it was just £9.9bn]
Bank of England plans to reduce ‘reporting burden’ on lenders
The Bank of England plans to slash the “reporting burden” on UK banks and allow insurers to make riskier investments without initial approval, as it comes under government pressure to ease regulations introduced after the financial crisis.Sam Woods, a deputy governor at the Bank who leads its regulatory arm, the Prudential Regulation Authority (PRA), said the central bank has rowed back on rules that appeared to be “overcooked”, suggesting they may have gone too far and harmed the financial sector.However, Woods, who was speaking to members of the House of Lords financial services regulation committee on Wednesday, insisted he did not want to see a regulatory “race to the bottom”.Both the PRA and fellow City regulator the Financial Conduct Authority have come under renewed pressure to support UK growth by easing rules on the financial services sector. In November, the chancellor, Rachel Reeves, ordered the watchdogs to encourage more risk-taking across the industry
Meta is getting rid of factchecking. If you want to leave Instagram, what are your alternatives?
Meta’s decision to end factchecking to prioritise “free speech” has prompted alarm among social media experts, as well as questions about the ethics of using its platforms such as Instagram.The company’s billionaire founder, Mark Zuckerberg, on Tuesday announced that the platforms’ factchecking program would be replaced with X-style “community notes”, a feature that allows users to add context to posts.More political content will be pushed on to Meta’s platforms – which also include Facebook and Threads – while certain restrictions will be removed for subjects including immigration and gender.But is it a reason to reconsider staying on these platforms? Here’s what you need to know.The decision affects just the US for now, but could expand to other jurisdictions
OpenAI chief executive Sam Altman accused of sexual abuse by sister in lawsuit
The sister of the OpenAI chief executive, Sam Altman, has filed a lawsuit alleging that he regularly sexually abused her for several years, starting when they were children.The lawsuit filed on 6 January in a US district court in the Eastern District of Missouri alleges that the abuse began when Ann Altman was three and Sam Altman was 12. The filing alleges that the last instance of abuse took place when he was an adult but his sister, known as Annie, was still a child.The chief executive of the ChatGPT developer posted a joint statement on X, which he had signed along with his mother, Connie, and his younger brothers, Max and Jack, denying the allegations and calling them “utterly untrue”.“Our family loves Annie and is very concerned about her wellbeing,” the statement said
Baltimore Orioles announce death of ‘cherished teammate’ Brian Matusz at age of 37
The Baltimore Orioles have confirmed the death of their former pitcher, Brian Matusz, at the age of 37. The team did not give a cause of death.“Our hearts are heavy tonight as we mourn the passing of former Oriole, Brian Matusz,” the team said in a statement on Tuesday night. “A staple in our clubhouse from 2009-2016, Brian was beloved throughout Birdland, and his passion for baseball and our community was unmatched. He dedicated his time to connecting with any fan he could, was a cherished teammate, and always had a smile on his face
England’s Feyi-Waboso in dilemma over surgery for sake of Lions ambitions
England’s Immanuel Feyi-Waboso is still in two minds about whether to undergo a shoulder operation that could affect his chances of representing the British & Irish Lions this summer. The Exeter wing is scheduled to have surgery next week, which would rule him out of the Six Nations and complicate his dream of touring Australia with the Lions.Rob Baxter, Exeter’s director of rugby, says the 22-year-old has not yet ruled out postponing the operation and can avoid recurring shoulder issues for the remainder of this season. A decision will need to be taken imminently, however, with Baxter suggesting extensive discussions between club and country are already delaying the process.If he has an operation next week on the shoulder he dislocated against Sale last month, Feyi-Waboso could be back playing again within three months, with plenty of time to prove his fitness, if selected, for the Lions who depart in June
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