close video Powell has ‘made it clear’ Fed will not ‘pivot’ on rates: Sica
Circle Squared Alternative Investments CEO Jeff Sica joins “Varney & Co.” to share his market outlook and breaks down his predictions for how the Federal Reserve will handle rate hikes going forward.
The consumer price index (CPI) rose 6.4% in January on an annual basis, hotter than expected, but remained steady compared to last month.
The latest read presents more challenges for Federal Reserve Chair Jerome Powell who has hinted that disinflation is underway.
Still, elevated costs for everyday staples remain stubbornly high.
A cashier checks out a customer at a Publix grocery store. (Jeffrey Greenberg / UCG / Universal Images Group via Getty Images / File / Getty Images)
The Labor Department reported that the CPI, a broad measure of the price of everyday goods that includes gasoline, groceries and rents, rose 0.5% on the month in January after a surprise decline of 0.1% in December.
JANUARY RENTS HAD THE SMALLEST INCREASE SINCE MAY 2021
Annually prices remain above 6% but are down sharply from the 9.1% surge in June, which marked the highest inflation rate in almost 41 years.
Customers shop in a store in Queens, New York, on Dec. 23, 2022. (Ziyu Julian Zhu / Xinhua via Getty Images / File / Getty Images)
Still, inflation is expected to remain roughly three times higher than the pre-pandemic average on an annualized basis, underscoring the persistent financial burden placed on millions of U.S. households by high prices.
JAMIE DIMON WARNS IT'S TOO EARLY TO DECLARE VICTORY AGAINST INFLATION
When factoring out volatile food and energy costs, the core consumer price index rose 0.4% in January, slightly above December’s 0.3% increase. Annually, core CPI ticked up 5.6% in January, more than expected.
It's still lower than September’s 6.6% increase, which was the highest in 40 years.
Powell has previously acknowledged that disinflation has begun, but the Fed chairman also says there is still a long way to go to reach the central bank’s desired 2.0% inflation rate.
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The markets initially welcomed this message, sending risk assets like stocks higher. But recent concerns that the Fed will keep rates higher for longer have investors worried about a policy mistake.
FOX Business' Charles Brady and Megan Henney contributed to this report.
Ten child protection organisations have written an urgent letter to the home secretary expressing concern about the omission of child sexual abuse from the government’s violence against women and girls strategy, following a Sky News report.
Groups including the NSPCC, Barnardo’s and The Internet Watch Foundation wrote to Yvette Cooper to say that violence against women and girls (VAWG) and child sexual abuse are “inherently and deeply connected”, suggesting any “serious strategy” to address VAWG needs to focus on child sexual abuse and exploitation.
The letter comes after Sky News revealed an internal Home Office document, titled Our draft definition of VAWG, which said that child sexual abuse and exploitation is not “explicitly within the scope” of their strategy, due to be published in September.
Image: Poppy Eyre when she was four years old
Responding to Sky News’ original report, Poppy Eyre, who was sexually abused and raped by her grandfather when she was four, said: “VAWG is – violence against women and girls. If you take child sexual abuse out of it, where are the girls?”
The Centre of Expertise on Child Sexual Abuse, which is funded by the Home Office and a signatory to the letter, estimates 500,000 children in England and Wales are sexually abused every year.
The NSPCC “welcome” the government’s pledge to halve VAWG in a decade, but is “worried that if they are going to fulfil this commitment, the strategy absolutely has to include clear deliverable objectives to combat child sexual abuse and exploitation too”, the head of policy, Anna Edmundson, told Sky News.
Image: Poppy is a survivor of child sexual abuse
She warned the government “will miss a golden opportunity” and the needs of thousands of girls will be “overlooked” if child sexual abuse and exploitation is not “at the heart of its flagship strategy”.
The government insists the VAWG programme will include action to tackle child sexual abuse, but says it also wants to create a distinctive plan to “ensure those crimes get the specialist response they demand”.
“My message to the government is that if you’re going to make child sexual abuse a separate thing, we need it now,” Poppy told Sky News.
Rape Crisis, which is one of the largest organisations providing support to women in England and Wales, shares these concerns.
It wants plans to tackle child sexual abuse to be part of the strategy, and not to sit outside it.
Image: The internal Home Office document detailing its violence against women and girls strategy
“If a violence against women and girls strategy doesn’t include sexual violence towards girls, then it runs the risk of being a strategy for addressing some violence towards some females, but not all,” chief executive Ciara Bergman said.
A Home Office spokesperson said the government is “working tirelessly to tackle the appalling crimes of violence against women and girls and child sexual exploitation and abuse, as part of our Safer Streets mission”.
“We are already investing in new programmes and introducing landmark laws to overhaul the policing and criminal justice response to these crimes, as well as acting on the recommendations of Baroness Casey’s review into group-based Child Sexual Exploitation, and the Independent Inquiry into Child Sexual Abuse,” they added.
Hundreds of shoplifting cases have gone unsolved every day, with the number of unsolved incidents rising by more than 40,000 over the past year.
New figures show that 289,464 cases of shoplifting were shut by police without a suspect in England and Wales in the year to March 2025, according to House of Commons library analysis.
Of all shoplifting cases, more than half (55%) were closed without a suspect identified, while fewer than one in five (18%) led to someone being charged.
The data shows the number of cases closed without a suspect has also risen significantly on the previous 12 months, with 245,337 cases shut by police forces without a suspect being identified in 2023-24, a rise of more than 40,000.
The analysis, produced for the Liberal Democrats, suggests that on average, 793 shoplifting offences went unsolved every day.
Senior Conservative politicians have told Sky News that the figures “explain why Britain feels lawless”, and are urging ministers to scrap plans to largely end the use of short prison sentences, in favour of people serving time in the community.
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What else does the data show?
The data covered all police forces in England and Wales, except for Humberside, but also included the British Transport Police.
It revealed the Metropolitan Police had the worst record, with 76.9% of its 93,705 shoplifting cases being closed with nobody identified as a suspect. Just 5.9% of shoplifting incidents recorded in the capital and the wider region resulted in a charge.
While the data has shown the number of unsolved cases is on the rise, it also revealed that the total number of shoplifting offences has increased dramatically, too.
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3:10
Do we send too many people to prison?
In 2023-24, 444,022 cases of shoplifting were recorded. But in 2024-25, this rose to 530,643, a record high since the practice of recording the data nationally began in 2002-03.
Overall, 2,071,156 offences of all types went unsolved in the 2024-25 year. This means, on average each day, 5,674 crimes were committed that went on to be closed without a suspect. Only 7.3% of all crimes recorded resulted in somebody being charged or summoned.
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1:06
Greggs shoplifter caught
The Lib Dems have repeated their calls for police and crime commissioners – elected politicians who have authority over each police force – to be scrapped. They believe the money spent on these would be better invested in frontline policing, and that police boards, made up of local councillors and other individuals, could replace them.
Lisa Smart, the party’s home affairs spokesperson, said that the data reveals an “absolute scandal” because it shows that “thousands of innocent victims are being left without the justice they deserve” every day.
She added: “The previous Conservative government left behind a legacy of failure, but the Labour government has not been quick enough to address the unsolved crime epidemic – particularly as shoplifting spirals out of control.”
Image: Home affairs spokesperson Lisa Smart, with party leader, Sir Ed Davey. Pic: PA
Tories: There should be a ‘zero tolerance approach’ to shoplifting
Meanwhile, the shadow home secretary pointed out that shoplifting has risen by 20% under Labour, and that ministers show “no signs of gripping it”.
Chris Philp told Sky News: “The vast majority of criminals aren’t even caught – and Labour are now proposing to abolish prison sentences of under a year, so even the few that get caught won’t suffer any real punishment.”
He has called for a “zero tolerance approach” and the greater use of technology, such as facial recognition technology, so that “Labour’s shoplifting epidemic can be stopped”.
Earlier this month, Home Secretary Yvette Cooper announced a significant expansion of the use of facial recognition tech by police forces in England and Wales, with 10 new vans being rolled out – though the move was criticised by civil liberties groups.
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11:15
Jenrick slams justice system shake-up
Robert Jenrick, the shadow justice secretary, said the “damning stats explain why Britain feels lawless”.
He told Sky News: “Starmer’s plan to scrap prison sentences for shoplifters will only make this worse. We need the authorities to go after these criminals and lock them up for much longer to keep the public safe.”
The government has defended the proposals to largely end the use of shorter sentences, as recommended by the independent sentencing review, carried out earlier this year by former Conservative justice secretary David Gauke.
A Ministry of Justice spokesperson said: “Without further action, we will run out of prison places in months, courts would halt trials and the police [would] cancel arrests. That is why we are overhauling sentencing to make sure we always have the prison places needed to keep the country safe.”
Bank holiday temperatures are set to soar close to 30C, offering a final burst of summer sunshine before wind and rain arrive.
Maximum temperatures will reach around 28C (82F) or 29C (84F) today, with widespread sunshine expected for most areas, the Met Office said.
“There’s around a 30% chance of temperatures reaching 30C somewhere over southern Britain… with the area around Chester likely to be the hottest place,” said Sky News meteorologist Dr Christopher England.
“Given the location, it’s looking likely that the Welsh August Bank Holiday record high of 26.5C, set at Crossway in 1991, will be exceeded, and by a considerable amount.”
The Northern Ireland record high of 23.8C, set in Banagher in 1983, may also be broken, he said.
Image: The bank holiday weekend has enjoyed high temperatures. Pic: Reuters
But later today, the remnants of Hurricane Erin will approach from the west, bringing periods of wind and rain to the UK-conditions that are expected to persist through the week, Met Office meteorologist Craig Snell said.
For the remainder of the week, temperatures will return to seasonal norms – hovering in the low 20s across the south and the high teens in the north.
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Image: Temperatures are expected to hit a peak today . Pic: Reuters
Mr Snell said: “On Monday, it will be a very warm and sunny picture for most.
“It will start to go downhill and rain will start to move in for Northern Ireland into the afternoon.”
Image: Wind and rain will make a swift return next week. Pic: Reuters
Those planning to visit the coast on Monday or Tuesday are advised to choose beaches with lifeguards, as large waves are expected to arrive during this period.
Beginning Tuesday, periods of rain will spread across all regions of the country, with the heaviest downpours expected in western areas, according to Mr Snell.
“It will be heavy at times in the west, but at the moment we’re not expecting too many impacts, and it may for farmers or anyone who needs the rain be welcome,” he said.
On Wednesday, a band of rain will sweep across the entire country, and low pressure is expected to persist through the weekend, bringing further periods of rainfall.