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US inflation rose 3.1% in January, a hotter-than-expected increase that further stokes doubts as to whether the Federal Reserve will begin cutting interest rates this spring.

Last month’s Consumer Price Index — which tracks changes in the costs of everyday goods and services — came in higher than the 2.9% figure economists had expected, according to FacfSet.

Core CPI — a number that excludes volatile food and energy prices — increased 0.4% in January, to 3.9%, after rising 0.3% in December. The figure, a closely-watched gauge among policymakers for long-term trends, was also higher than what economists at FactSet expected.

Dow futures were poised to drop early Tuesday as traders began to unwind bets that the Fed will begin easing rates sooner rather than later.

The latest inflation figure marks a cooldown from December’s stiffer-than-expected 3.4% gain, which dampened hopes on Wall Street that the first of three highly-anticipated interest rate cuts this year could come as soon as March.

“The question is whether or not May 1 remains a possibility if the next series of inflation related data do not edge lower than expected,” said LPL Financial’s chief global strategist, Quincy Krosby.

“This could easily be a one off. But for all those people saying rates are too high, he’s got to cut now,” Chris Zaccarelli, chief investment officer of Independent Advisor Alliance, said of Fed Chair Jerome Powell. “What are we waiting for? This is why. This is exactly what Powell was worried about.”

The Bureau of Labor Statistics attributed the CPI’s increase to the shelter index, which rose 0.6% on a monthly basis and contributed to two-thirds of the monthly all-items increase. The food index increased 0.4% in January, more than the 0.2% it advanced in December.

The gas index, meanwhile, experienced a handsome 3.3% drop, offsetting increases in the electricity and natural gas indexes, the federal agency said. As of Tuesday, the average price for a gallon of gas in the US is $3.23, according to AAA data.

The Bureau of Labor Statistics’ latest CPI report underscores that cash-strapped Americans, who are still dealing with retail prices far above where they were before the pandemic.

Hopes for rate cuts also took a hit with the January jobs report showing the labor market is booming, with US employers adding a staggering 353,000 jobs last month.

The figure blew past the 185,000 jobs economists expected, as the unemployment rate remained steady at 3.7% for the third month in a row.

Januarys jobs report was the first major piece of economic data since the Federal Reserves latest policy meeting, when central bankersunanimously decided to keep interest rates at their current 22-year high, between 5.25% and 5.5%.

Considering the jobs report and the CPI, the Fed still “doesnt have a coherent set of criteria for cutting, so for all we know this resets the clock,” according to Subadra Rajappa, Societe Generale’s Head of US Rates Strategy.

“If cutting is a confidence game, we dont know when enough progress is enough or whether mild setbacks undermine their confidence.”

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Meanwhile, President Joe Biden has addressed the issue of “shrinkflation” — when businesses cut product sizes but keep prices the same — in a video posted on X ahead of Super Bowl LVIII.

Biden called the practice “a rip-off.”

Im calling on companies to put a stop to this. Lets make sure businesses do the right thing now, he said, though he didn’t offer a solution or policy to address the practice.

Senator Bob Casey in December released a report that showed the impact of smaller product sizes on everything from toilet paper to Oreos.

The report noted that household paper products were 34.9% more expensive per unit than they were in January 2019, with about 10.3% of the increase due to producers shrinking the sizes of rolls and packages.

It said the price of snacks like Oreos and Doritos had gone up 26.4% over the same period, with shrinking portions accounting for 9.8% percent of the increase.

Although inflation appears to be slowing, the economy remains Americans overall top concern, cited by 22% of poll respondents, as they have struggled with inflation and other aftershocks of the COVID-19 pandemic, according to a Reuters/Ipsos poll released last month.

Since taking office, Biden has made a pitch for lower supermarket prices, pushed drug makers to lower insulin costs, hotel chains to reduce fees and tried to diversify the meat-packing industry after beef prices skyrocketed in the aftermath of the pandemic.

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Zoe Ball to leave her BBC Radio 2 breakfast show – and will be replaced by Scott Mills

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Zoe Ball to leave her BBC Radio 2 breakfast show - and will be replaced by Scott Mills

Zoe Ball is leaving her BBC Radio 2 breakfast show after six years.

The 53-year-old, who recently lost her mother to cancer, will present her last show on Friday, 20 December.

BBC Radio 2 presenters Zoe Ball and Scott Mills leaving Wogan House.
Pic: PA
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Ball leaves Wogan House with her replacement, Scott Mills. Pic: PA

She said she was leaving to focus on family, but will remain part of the Radio 2 team and will give further details next year.

Announcing the news on her Tuesday show, she said: “After six years of fun times alongside you all on the breakfast show, I’ve decided it’s time to step away from the early alarm call and start a new chapter.

“You know I think the world of you all, listeners, and it truly has been such a privilege to share the mornings with you, to go through life’s little ups and downs, we got through the lockdown together, didn’t we?

“We’ve shared a hell of a lot, the good times, the tough times, there’s been a lot of laughter. And I am going to miss you cats.”

Scott Mills will replace Ball on the breakfast show following her departure next month.

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“Zoe and I have been such good friends now for over 25 years and have spent much of that time as part of the same radio family here at Radio 2 and also on Radio 1,” he said.

“She’s done an incredible job on this show over the past six years, and I am beyond excited to be handed the baton.”

Hugging outside the BBC building on the day of the announcement, Ball said she was “really chuffed for my mate and really excited about it”.

Ball was the first female host of both the BBC Radio 1 and Radio 2 breakfast shows, starting at the Radio 1 breakfast show in 1998, and taking over her current Radio 2 role from Chris Evans in 2020 after he left the show.

She took a break from hosting her show over the summer, returning in September.

Ahead of her stint in radio, Ball – who is the daughter of children’s presenter Johnny Ball – co-hosted the BBC’s Saturday morning children’s magazine show Live & Kicking alongside Jamie Theakston for three years from 1996.

She has two children, Woody and Nelly, with her ex-husband, DJ and musician Norman Cook, known professionally as Fatboy Slim.

Ball said in her announcement her last show towards the end of December will be “just in time for Christmas with plenty of fun and shenanigans”.

“While I’m stepping away from the Breakfast Show, I’m not disappearing entirely – I’ll still be a part of the Radio 2 family, with more news in the New Year,” she added.

“I’m excited to embrace my next chapter, including being a mum in the mornings, and I can’t wait to tune in on the school run!”

Helen Thomas, head of Radio 2, said: “Zoe has woken up the nation on Radio 2 with incredible warmth, wit and so much joy since January 2019, and I’d like to thank her for approaching each show with as much vim and vigour as if it were her first. I’m thrilled that she’ll remain an important part of the Radio 2 family.”

Mills, 51, got his first presenting role aged just 16 for a local station in Hampshire, and went on to present in Bristol and Manchester, before joining BBC Radio 1 in 1998.

He’s previously worked as a cover presenter on Radio 2, but this is his first permanent role on the station.

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World

Over 100 politicians from multiple countries condemn China over detention of tycoon Jimmy Lai

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Over 100 politicians from multiple countries condemn China over detention of tycoon Jimmy Lai

More than 100 politicians from 24 different countries, including the UK, the US and the EU, have written a joint letter condemning China over the “arbitrary detention and unfair trial” of Jimmy Lai, a tycoon and pro-democracy campaigner.

The parliamentarians, led by senior British Conservative MP Alicia Kearns, are “urgently” demanding the immediate release of the 77-year-old British citizen, who has been held in solitary confinement at a maximum security prison in Hong Kong for almost four years.

The letter – which will be embarrassing for Beijing – was made public on the eve of Mr Lai’s trial resuming and on the day after British Prime Minister Keir Starmer met Chinese President Xi Jinping on the sidelines of a G20 summit of economic powers in Brazil.

It also comes as Hong Kong jailed 45 pro-democracy activists.

The group of politicians, who also include representatives from Canada, Australia, Spain, Germany, Ukraine and France, said Mr Lai’s treatment was “inhumane”.

“He is being tried on trumped-up charges arising from his peaceful promotion of democracy, his journalism and his human rights advocacy,” they wrote in the letter, which has been seen by Sky News.

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Starmer meets Chinese president

“The world is watching as the rule of law, media freedom and human rights in Hong Kong are eroded and undermined.

“We stand together in our defence of these fundamental freedoms and in our demand that Jimmy Lai be released immediately and unconditionally.”

Sir Keir raised the case of Mr Lai during remarks released at the start of his talks with Mr Xi on Monday – the first meeting between a British prime minister and the Chinese leader in six years.

The prime minister could be heard expressing concerns about reports of Mr Lai’s deteriorating health. However, he did not appear to call for his immediate release.

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From October: ‘This is what Hong Kong is’

Ms Kearns, the MP for Rutland and Stamford in the East Midlands, said the meeting had been an opportunity to be unequivocal that the UK expects Mr Lai to be freed.

“Jimmy Lai is being inhumanely persecuted for standing up for basic human values,” she said in a statement, released alongside the letter.

“He represents the flame of freedom millions seek around the world.

“We have a duty to fight for Jimmy Lai as a British citizen, and to take a stand against the Chinese Community Party’s erosion of rule of law in Hong Kong.

Read more:
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“This letter represents the strength of international feeling and commitment of parliamentarians globally to securing Jimmy Lai’s immediate release and return to the UK with his family.”

Mr Lai was famously the proprietor of the Chinese-language newspaper Apple Daily in Hong Kong, which wrote scathing reports about the local authorities and the communist government in mainland China after Britain handed back the territory to Beijing in 1997.

The tabloid was a strong supporter of pro-democracy protesters who took to the streets of Hong Kong to demonstrate against the government in 2019.

But the media mogul was arrested the following year – one of the first victims of a draconian new security law imposed by the Chinese Communist Party.

His newspaper was closed after his bank accounts were frozen.

Mr Lai has since been convicted of illegal assembly and fraud. He is now on trial for sedition over articles published in Apple Daily.

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World

Hong Kong jails 45 pro-democracy activists after accusing them of trying to overthrow the city’s government

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Hong Kong jails 45 pro-democracy activists after accusing them of trying to overthrow the city's government

Forty-five pro-democracy activists have been jailed in Hong Kong’s largest ever national security trial.

The activists sentenced with jail terms ranging from four years to ten years were accused of conspiracy to commit subversion after holding an unofficial primary election in Hong Kong in 2020.

They were arrested in 2021.

Hong Kong authorities say the defendants were trying to overthrow the territory’s government.

Democracy activist Benny Tai received the longest sentence of ten years. He became the face of the movement when thousands of protesters took to the city’s streets during the “Umbrella Movement” demonstrations.

However, Hong Kong officials accused him of being behind the plan to organise elections to select candidates.

Tai had pleaded guilty, his lawyers argued he believed his election plan was allowed under the city’s Basic Law.

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Another prominent activist Joshua Wong received a sentence of more than four years.

Joshua Wong was sentenced to more than four years Pic: AP
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Joshua Wong was sentenced to more than four years Pic: AP

Wong became one of the leading figures in the protests. His activism started as a 15 year old when he spearheaded a huge rally against a government plan to change the school curriculum.

Then in 2019 Hong Kong erupted in protests after the city’s government proposed a bill that would allow extradition to mainland China. It peaked in June 2019 when Amnesty International reported that up to two million people marched on the streets, paralysing parts of Hong Kong’s business district.

The extradition bill was later dropped but it had ignited a movement demanding political change and freedom to elect their own leaders in Hong Kong.

China’s central government called the protests “riots” that could not continue.

Hong Kong introduced a national security law in the aftermath of the protests.

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A woman is taken away by police outside the court Pic: Reuters
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A woman is taken away by police outside the court Pic: Reuters

The US has called the trial “politically motivated”.

Dozens of family and friends of the accused were waiting for the verdict outside the West Kowloon Magistrates Court.

British citizen and media mogul Jimmy Lai is due to testify on Wednesday.

Meeting on the sidelines of the G20 in Brazil, British Prime Minister Keir Starmer told China’s President Xi Jinping he’s concerned about the health of Lai.

He faces charges of fraud and the 2019 protests. He has also been charged with sedition and collusion with foreign forces.

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