Connect with us

Published

on

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.”

Subscribe to our daily Business Report newsletter!

Please provide a valid email address.

By clicking above you agree to the Terms of Use and Privacy Policy.

Never miss a story.

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.

Continue Reading

World

Terror group supporters posted on TikTok, YouTube and Google from site targeted in Indian airstrikes

Published

on

By

Terror group supporters posted on TikTok, YouTube and Google from site targeted in Indian airstrikes

Social media accounts expressing support for a Pakistan-based terror group linked to al Qaeda appear to have posted recent videos from a Pakistan mosque targeted by Indian airstrikes.

Sky News has found videos posted on TikTok, YouTube and Google that appear to be filmed at the Markaz Taiba Mosque in Muridke. The captions and usernames contain expressions of support for the Lashkar-e-Taiba (LeT) and a group called ‘313’.

Sky News has found and geolocated multiple videos that appear to be filmed in the area where the captions include either or both ‘313’ and LeT.

Some of the videos show men in the streets with guns. Another post captioned a video of children doing martial arts training inside the targeted mosque, “we are little soldiers, and we fight the non-believers”.

The caption of the video reads "we are little soldiers, and we fight the non-believers". It uses the hashtag '313' and uses the word 'mujahid' which means 'who does jihad'.
Image:
The caption of the video reads ‘we are little soldiers, and we fight the non-believers’. It uses the hashtag ‘313’.

The caption uses the hashtag #جہاد313, which translates to ‘313’ jihad.

‘313’ appears to refer to the 313 Brigade, a proscribed terror organisation in Pakistan.

In a TikTok video posted to the Google page for Markaz Taiba Mosque in Muridke, a man can be seen walking along the street with a gun.

More from World

The account that posted that video wrote in their description, “Lashkar Taiba, Mujahid Force, ‘313’ and Markaz Taiba Muridke”, self-proclaiming their support for the groups.

This screenshot from a Google user labels Lashkar-e-Taiba and ‘313’ and claims to be from Muridke.
Image:
This screenshot from the Google user labels Lashkar-e-Taiba and ‘313’ and includes the location name Muridke

India’s retaliatory strikes on Pakistani-adminstered Kashmir and Pakistan on 7 May came after a deadly attack in Indian-administered Kashmir last month.

Gunmen opened fire on tourists, killing 26 people and injuring dozens in a popular holiday spot near Pahalgam, Kashmir, on 22 April.

LeT were accused by India of involvement in the Pahalgam attack through their proxy the Resistance Front, which claimed responsibility for the attack.

LeT, which is designated as a terrorist organisation by the UN Security Council and the UK, focuses on fighting Indian control in Kashmir and is based in the Punjab region of Pakistan.

Pakistan denies allegations of terror camps operating in the country. This region has been in the control of the Punjabi government since 2010. The Punjab government condemned the Indian strikes, and declared a state of emergency across Punjab.

Muskan Sangwan, senior intelligence analyst at TRAC, a terrorism research and analysis consortium, told Sky News: “Brigade 313 is al Qaeda in Pakistan. It’s an umbrella organisation for members of several groups like Taliban, Lashkar-e-Jhangvi, Haqqat ul-Jihad-al-Islami, Jaish-e Muhammad, Lashkar-e-Taiba, and Jundullah.”

Ms Sangwan explained that ‘313’ refers to the number of companions said to have fought with the Prophet Mohammed in the Battle of Badr.

TRAC have seen a recent uptick in TikTok videos and other social media posts that refer to ‘313’.

Many of the accounts are linked to each other.

Ms Sangwan said: “They [the TikTok users] mostly use ‘313’ as a hashtag… trying to push that hashtag to as many people it can reach on social media.”

Sky News sought to verify the location by comparing before and after videos from the strike location, and using the video released by the Indian army conducting the strike.

One video showing damage at the strike location was posted by a user with 313 in their TikTok username.

The TikTok account that posted video footage of the destruction of the mosque has 313 in their caption.
Image:
The TikTok account that posted video footage of the destruction in Muridke has 313 in the username

Below is satellite imagery that shows the destruction of the site.

Satellite imagery shows Markaz Taiba Mosque after the strike on May 7th. Credit: Maxar.
Image:
Satellite imagery shows Markaz Taiba Mosque after the strike on 7 May. Credit: Maxar

In one TikTok, the video is captioned “bring your arms and ammunition and go to war”. The text on the screen of the TikTok is ‘313’ and he is carrying a gun.

The group are comfortable with having an online presence. On the Google tag for Markaz Taiba Mosque in Muridke, men pose for a group photo. Almost all the people in the photo have used ‘313’ on TikTok.

Ms Sangwan explained: “With these people from Muridke, pushing this propaganda on social media would generate a lot of significance in terms of recruitment and in terms of gaining support from local people and from other people.”

Sky News’ Asia correspondent Cordelia Lynch has reported on the ground in Muridke.

Please use Chrome browser for a more accessible video player

Anger in Pakistan after India strikes

India says it struck Markaz Taiba, a site in Muridke about 15 miles (25km) from the border, which has long been claimed to be a terrorist training site associated with LeT.

MEMRI, a US-based research group that monitors terrorist threats, told Sky News: “It has been known for decades that Lashkar-e-Taiba has its headquarters in Muridke.”

Follow the World
Follow the World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

Sky News contacted the Pakistan Ministry of Defence for comment. Khawaja Asif, Pakistan’s defence minister, told Sky News: “This appears to be a random video with background music added later – consistent with how TikTok trends often function. If this is to be considered credible evidence, we could produce millions of similar clips ourselves.”

Mr Asif also said that any suggestion that the mosque was used as a base by terrorists was a “completely false, social media made up hoax”.

On 7 May, after the strikes in Pakistan, the Indian subcontinent branch of al Qaeda issued a statement condemning India’s actions and encouraging its supporters to wage jihad against India.

The Data and Forensics team is a multi-skilled unit dedicated to providing transparent journalism from Sky News. We gather, analyse and visualise data to tell data-driven stories. We combine traditional reporting skills with advanced analysis of satellite images, social media and other open source information. Through multimedia storytelling we aim to better explain the world while also showing how our journalism is done.

Continue Reading

World

Putin wants direct talks with Ukraine, but Zelenskyy and allies demand 30-day ceasefire from Monday

Published

on

By

Putin wants direct talks with Ukraine, but Zelenskyy and allies demand 30-day ceasefire from Monday

Russia’s president has suggested fresh peace talks with Ukraine in Istanbul as part of “direct negotiations” but also “without preconditions”.

Vladimir Putin put forward the proposal as European leaders including Sir Keir Starmer threatened him with fresh sanctions if Russia failed to comply with an unconditional 30-day ceasefire starting on Monday.

Kremlin spokesperson Dmitry Peskov told CNN that Moscow will need to consider those terms.

On Saturday the prime minister met Ukrainian President Volodymyr Zelenskyy alongside French President Emmanuel Macron, recently elected German Chancellor Friedrich Merz and Polish Prime Minister Donald Tusk in Kyiv.

Speaking at the Kremlin in the early hours of Sunday, Mr Putin did not directly address the 30-day ceasefire proposal but instead offered to restart peace talks Russia and Ukraine held in 2022.

Russian President Vladimir Putin gestures as he speaks to journalists in the Grand Palace at the Kremlin in Moscow, Russia, Sunday, May 11, 2025, after celebrations of the 80th anniversary of the Soviet Union's victory over Nazi Germany during World War II. (Sergei Bobylev/Photo host agency RIA Novosti via AP)
Image:
Vladimir Putin told reporters he was committed to talks. Pic: RIA Novosti/AP

“We propose the Kyiv authorities resume the negotiations they interrupted at the end of 2022… to resume direct negotiations… without any preconditions… to begin without delay next Thursday 15 May in Istanbul,” he said.

Russia’s own unilateral three-day ceasefire, declared for the 80th anniversary of victory over Nazi Germany, expired on Saturday, and Ukraine said Russian forces have repeatedly violated it.

European leaders hold call with Ukraine. Pic: Number 10
Image:
European leaders including Volodymyr Zelenskyy hold call with Donald Trump. Pic: Number 10

During the summit in Kyiv, European leaders secured the backing of Donald Trump after briefing him on the progress made on the so-called “coalition of the willing” plans in a 20-minute phone call.

“All of us here, together with the US, are calling Putin out,” said Sir Keir.

“So we are clear, all five leaders here – all the leaders of the meeting we just had with the coalition of the willing – an unconditional ceasefire, rejecting Putin’s conditions, and clear that if he turns his back on peace, we will respond.

“Working with President Trump, with all our partners, we will ramp up sanctions and increase our military aid for Ukraine’s defence to pressure Russia back to the table.”

Britain's Prime Minister Keir Starmer meets with French President Emanuel Macron and German Chancellor Friedrich Merz on board a train to the Ukrainian capital Kyiv where all three will hold meetings with Ukrainian President Volodymyr Zelensky, May 9, 2025. Stefan Rousseau/Pool via REUTERS
Image:
Sir Keir Starmer, Emmanuel Macron and Friedrich Merz travelling in the saloon car of a special train to Kyiv. Pic: Reuters

Leaders arrive in Kyiv by train. Pic: PA
Image:
Leaders arrive in Kyiv by train. Pic: PA

It comes after President Trump called for “ideally” a 30-day ceasefire between Kyiv and Moscow, and warned that if any pause in the fighting is not respected “the US and its partners will impose further sanctions”.

During Mr Putin’s statement on Sunday, he insisted he would support peace talks: “We are committed to serious negotiations with Ukraine.”

He told reporters: “Their purpose is to eliminate the root causes of the conflict, to establish a long-term, lasting peace. We do not rule out that during these negotiations it will be possible to agree on some new truces, a new ceasefire.”

Putin cobbles together response to 30-day ceasefire demand

The Kremlin billed this as a meaningful statement from Vladimir Putin but how much does it actually mean?

His comments are exactly the same as what Moscow has been saying for weeks, only repackaged with a date. The latest attempt to avoid committing to a 30-day ceasefire.

Next Thursday – 15 May – is when he’s proposing to hold direct talks with Ukraine. Only then, he says, can they discuss the details of a longer truce.

Istanbul is apparently the venue. The trouble is, Turkey doesn’t appear to know about it. The Russian leader said he’d call President Erdogan tomorrow.

Given America’s apparent support for Europe’s ultimatum to Russia (ceasefire or sanctions), he had to respond with something new.

But this felt like a proposal that had been hastily cobbled together in the corridor outside.

Read more from Ivor here.

Security and defence analyst Michael Clarke told Sky News presenter Samantha Washington the European leaders are “rowing in behind” the US president, who referred to his “European allies” for the first time in this context in a post on his Truth Social platform.

“So this meeting is all about heaping pressure on the Russians to go along with the American proposal,” he said.

“It’s the closest the Europeans and the US have been for about three months on this issue.”

Trump calls for ceasefire. Pic: Truth Social
Image:
Trump calls for ceasefire. Pic: Truth Social

Mr Zelenskyy told reporters the agreed ceasefire should cover air, sea and land, and said that if Moscow refused, Russia would face new sanctions, including the strengthening of punitive measures targeting its energy and banking sectors.

The European leaders said the terms of a peace deal would be negotiated during the 30-day pause in fighting.

But the Ukrainian president said: “We have no illusions that the ceasefire will be breached.”

Mr Macron said the proposed ceasefire would be monitored mainly by the US and European countries and there would be “massive” sanctions if Russia did not agree.

Sir Keir Starmer and Volodymyr Zelenskyy during a meeting in March. Pic: AP
Image:
Sir Keir and Volodymyr Zelenskyy during a meeting in March. Pic: AP

Please use Chrome browser for a more accessible video player

Putin’s Victory Day parade explained

Military officers from around 30 countries have been involved in drawing up plans for a coalition, which would provide a peacekeeping force in the event of a ceasefire being agreed between Russia and Ukraine.

This force “would help regenerate Ukraine’s armed forces after any peace deal and strengthen confidence in any future peace”, according to Number 10 Downing Street.

Read more:
Will Trump force Putin to comply with ceasefire?
Russia’s VE Day parade felt like celebration of war
Michael Clarke Q&A on Ukraine war
Ukraine and Russia argue over ceasefire breaches

👉Listen to The World with Richard Engel and Yalda Hakim on your podcast app👈

Mr Peskov accused European leaders of making contradictory and confrontational statements, according to Interfax news agency.

“We hear many contradictory statements from Europe. They are generally confrontational in nature rather than aimed at trying to revive our relations. Nothing more,” he was quoted as saying.

Continue Reading

World

Pope prays at tomb of predecessor during first outing since election

Published

on

By

Pope prays at tomb of predecessor during first outing since election

Pope Leo XIV made his first outing since his election on Saturday, making a surprise stop to pray at the tomb of his predecessor.

On Saturday afternoon, the new pontiff travelled to a sanctuary dedicated to the Madonna in the town of Genazzano.

The sanctuary is managed by Augustinian friars, the order the pope belongs to, and has been a place of pilgrimage since the 15th century.

The pontiff’s namesake. Pope Leo XIII, elevated it to a minor basilica and expanded its convent in the early 1900s.

Pope Leo XIV is cheered by residents of Genazzano , near Rome on 10 May. Pic: Vatican Media/AP
Image:
Pope Leo XIV is cheered by residents of Genazzano , near Rome on 10 May. Pic: Vatican Media/AP


After praying, Leo greeted the faithful gathered outside and offered a blessing.

On his way back to the Vatican, he stopped to pray at Pope Francis’s tomb at St Mary Major Basilica.

Earlier in the day, Leo held his first formal audience and said the Catholic Church must take the lead in facing threats to workers, such as AI.

More on Pope Leo

The 69-year-old said the technology posed “new challenges for the defence of human dignity, justice and labour”.

Pope Leo XIV identified AI as major challenge to humanity. Pic: Vatican Media/AP
Image:
The Pope identified AI as a major challenge to humanity. Pic: Vatican Media/AP

The leader of the world’s 1.4 billion Catholics referred to AI as he explained his choice of name to the cardinals who elected him.

He said he identified with his namesake Pope Leo XIII, who was pontiff from 1878 to 1903 and addressed workers’ rights and capitalism at the dawn of the industrial age in the 1891 encyclical Rerum Novarum.

The late pope, who laid the foundation for modern Catholic social thought, criticised both laissez-faire capitalism and state-centric socialism.

“In our own day, the church offers everyone the treasury of its social teaching in response to another industrial revolution and to developments in the field of artificial intelligence that pose new challenges for the defence of human dignity, justice and labour,” Leo said.

The Pope also made clear he will follow in the modernising reforms of his predecessor Pope Francis to make the Catholic Church inclusive, attentive to the faithful, and an institution that looks out for the “least and rejected”.

Follow the World
Follow the World

Listen to The World with Richard Engel and Yalda Hakim every Wednesday

Tap to follow

Read more from Sky News:
Trump says India-Pakistan ceasefire agreed
Ukraine presses Russia for truce

Leo said he was fully committed to the reforms of the Second Vatican Council, the 1960s meetings that modernised the church.

Toward the end of his pontificate, Francis became increasingly vocal about the threats to humanity posed by AI and called for an international treaty to regulate it.

Francis brought his message to the G7 summit of world leaders last year, insisting AI must remain human-centric so decisions about when to use weapons or even less-lethal tools always remain made by humans and not machines.

Continue Reading

Trending