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Inflation-battered shoppers cut back on their holiday spending this year — opening their wallets mainly for “big deals,” according to industry experts and newly released figures.

US retail sales rose just 3.1% year-over-year between Nov. 1 and Dec. 24 — well short of analyst forecasts of 3.7% and less than half of the 7.6% spike recorded last year, according to Mastercard.

Amazon and Walmart ramped up promotions through November to entice bargain-hunting shoppers, but analysts said the discounts were not as deep as the prior year when retailers were saddled with excess stock after the pandemic.

Arun Sundaram, an analyst at CRFA Research, said many shoppers waited for Black Friday and Cyber Monday to make holiday purchases and finished the final sprint during Super Saturday — the last shopping day before Christmas.

“Consumers are still spending, but they’re still price conscious and want to stretch their budgets,” Sundaram said.

He said the weeks between Cyber Monday and Super Saturday were a “soft period” for spending, but shoppers used the final weekend before Christmas to look for “big deals.”

Online shopping accounted for a large chunk of this year’s holiday spending. According to the Mastercard report, online retail sales jumped by 6.3% year-over-year, while in-store sales rose just 2.2%.

Apparel sales jumped 2.4%, while in-person dining at restaurants soared by 7.8%, according to the report.

There were declines in sales of jewelry (2%) and electronics (0.4%).

Ultimately, it was about getting the most bang for your buck as consumers spent on a variety of goods and services, resurfacing spending trends from before the pandemic, Mastercard senior adviser Steve Sadove said.

Americans have been saddled with soaring prices in recent years though there have been signs inflation is beginning to cool.

The Fed’s preferred measure of inflation — the Personal Consumption Expenditures price index (PCE) — rose less than expected in November.

According to the Bureau of Economic Analysis, core inflation, which excludes food and energy costs, rose 0.1% compared to October.

That was lower than the 0.2% rise forecast by economists polled by Reuters. The year-over-year increase was 3.2%, lower than Octobers 3.4% gain.

The figures signal that the Fed is winning a nearly two-year battle against inflation and further increase the odds for lower interest rates in the new year.

The Federal Reserve has signaled that it intends to slash interest rates which are currently between 5.25% and 5.5% by as much as 75 basis points in 2024.

Projections from all 19 policymakers that showed near unanimity that borrowing costs would fall next year, many of them by a substantial margin following their latest policy meeting earlier this month, when borrowing costs held steady at their 22-year high.

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Sports

Mets’ Alvarez (thumb) progressing in recovery

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Mets' Alvarez (thumb) progressing in recovery

NEW YORK — Francisco Álvarez checked off another box Saturday in his return from tearing the ulnar collateral ligament in his left thumb last month.

The New York Mets catcher took batting practice on the field Saturday for the first time since injuring the thumb sliding into second base against the Los Angeles Dodgers on April 19. He took more than 20 swings before the Mets hosted the San Francisco Giants at Citi Field.

Asked if he took the swings at full strength, Álvarez pointed out that he hit a ball 115 mph. That, he joked, said it all.

“I’m very happy and excited to be back on the field,” Álvarez, 22, said. “I’m very happy with how everything is going.”

Álvarez, who underwent surgery on the thumb April 23, explained he is still a few steps away from going on a rehab assignment. The next checkpoints include hitting off a pitching machine to face velocity before facing live pitching and catching bullpens.

The Mets announced a six-to-eight-week timeline for Álvarez following the surgery. Tuesday marks five weeks.

“I don’t know if it’s a few more weeks or days,” Álvarez said. “It’s really how is everything going? If I keep feeling good, if I keep doing good, if I don’t feel nothing in my thumb, my batting cage is feeling good, maybe it’s a couple of weeks, a couple of days.”

Álvarez said he sought out advice from Kansas City Royals catcher Salvador Pérez, a fellow Venezuelan who sustained the same UCL thumb injury in 2022. Two years later, Pérez, one of the most productive hitters in the majors this season, told Álvarez about the recovery process and the need to take his time.

The Mets, meanwhile, have had some of the worst production in the majors from the catcher position without Álvarez. Mets catchers Tomas Nido and Omar Narvaez have combined to for a .194 batting average since April 20, the fourth-worst mark in the majors. Their collective 38 wRC+ ranks 28th, ahead of only the Washington Nationals and Chicago Cubs.

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Politics

‘More holes than Swiss cheese’: Unite union attacks Labour’s ‘rebrand’ of workers’ rights plan

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'More holes than Swiss cheese': Unite union attacks Labour's 'rebrand' of workers' rights plan

Sir Keir Starmer has defended Labour’s decision to rebrand its package of workers’ rights after a union said the plans had “more holes than Swiss cheese”.

Sharon Graham, general secretary of the Unite union, accused the party of watering down its policies after it rebranded “Labour’s new deal for working people” as “Labour’s plan to make work pay”.

Reports suggest it would go through a formal consultation process with businesses, potentially delaying or toning down pledges on areas like zero-hours contracts, parental leave and sick pay.

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Ms Graham said: “The again revised New Deal for Working People has more holes in it than Swiss cheese. The number of caveats and get-outs means it is in danger of becoming a bad bosses’ charter.

“Working people expect Labour to be their voice. They need to know that Labour will not back down to corporate profiteers determined to maintain the status quo of colossal profits at the expense of everyone else.

“The country desperately needs a Labour government, but the party must show it will stick to its guns on improving workers’ rights.”

Unite union general secretary Sharon Graham, joins ambulance workers on the picket line outside ambulance headquarters in Coventry
Image:
Sharon Graham urged Labour to ‘stick to its guns on improving workers’ rights’. Pic: PA

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Asked about the comments during a visit to Staffordshire, Sir Keir said: “We have come to an agreement with the unions.

“At the heart of this is something really important to me and that’s dignity and respect at work and I think everybody should be treated with dignity and respect at work.

“There’s another really important angle on this, which is the number one mission for an incoming government is to grow the economy to make sure our economy ensures living standards are improved everywhere across the country.

“I don’t think you can do that if you don’t treat your workforce properly.”

Elements of Labour’s plan include a “right to switch off”, a proposed ban on zero hours contracts and stronger employment rights from day one of a new job.

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The party has also said it wants to empower adult social care professionals and trade unions that represent them to negotiate a sector-wide agreement for pay, terms and conditions.

A Labour spokesperson said: “Labour’s new deal for working people is our plan to make work pay. It’s how we’ll boost wages, deliver secure work and support working people to thrive – delivering a genuine living wage, banning exploitative zero hours contracts, and ending fire and rehire.

“The new deal is a core part of our mission to grow Britain’s economy and raise living standards in every part of the country. Labour will make Britain work for working people.”

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World

Fire breaks out at amusement park in India, killing at least 24 people

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Fire breaks out at amusement park in India, killing at least 24 people

A huge fire has broken out at an amusement park in western India, leaving at least 24 people dead.

The blaze happened at the park in the city of Rajkot, with the cause of the fire being investigated.

Many children are reported to be among those who died in the catastrophe in the Gujarat state, western India.

Police Commissioner Raju Bhargava said the flames were now under control and 20 bodies had been recovered.

Flames were seen engulfing the TRP game zone and thick clouds of smoke rose into the sky.

A police official at the local civil hospital said some of the bodies were charred beyond recognition.

The scene of the fire which has left at least 20 people dead. Pic: AP
Image:
The scene of the fire which has left at least 24 people dead. Pic: AP

The park is usually packed with families with children enjoying the school summer vacation over the weekend.

Footage showed firefighters clearing debris around collapsed tin roof structures that media reports said were used for bowling, go-karting and trampoline attractions.

Mr Bhargava said police will file a case of negligence against the owner of the park.

The city’s mayor, Nayana Pedhadiya, also vowed that action would be taken.

He said: “Our focus is on rescue operations and saving lives. We will ensure strict action is taken against the people who are responsible for this incident.”

The cause of the fire is not yet confirmed, the district’s chief fire officer said.

Some 20 bodies were recovered. Pic: AP
Image:
The scene of the fire which has left at least 24 people dead. Pic: AP

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India’s Prime Minister Narendra Modi wrote on X that he was “extremely distressed by the fire mishap in Rajkot”.

“My thoughts are with all those who have lost their loved ones,” he added.

“Prayers for the injured.”

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