An inflation measure closely watched by the Federal Reserve ticked higher in July as steep prices continue to squeeze millions of US households.
The personal consumption expenditures (PCE) index showed that consumer prices rose 0.2% from the previous month, according to the Commerce Department.
On an annual basis, prices climbed 3.3% — up from 3% the previous month, underscoring the challenge oftaming high inflation.
The figures were both in line with estimates from Refintiv economists.
Core prices, which strip out the more volatile measurements of food and energy, climbed 0.2% from the previous month and 4.2% from the previous year.
While the Fed is targeting the PCE headline figure as it tries to wrestle consumer prices back to 2%,Chair Jerome Powellpreviously told reporters that core data is actually a better indicator of inflation.
Both the core and headline numbers point to inflation that is still running above the Fed’s preferred 2% target.
“The PCE index has been moving in the right direction overall, but core inflation remains stickier than expected keeping the data dependent and agile Fed more likely to raise rates again this year,” said Quincy Krosby, chief global strategist for LPL Financial.
Other figures included in the report showed that consumer spending jumped 0.8% in July, compared with a 0.6% increase in June.
Still, many economists anticipate that spending will slow in coming months as spenders continue to grapple with expensive goods, high interest rates and the resumption of federal student loan payments.
“Consumers spent freely in July even if it meant dipping into their savings amid slower income growth,” said Gregory Daco, EY chief economist. “We anticipate the trend will slow in August and September as elevated prices for goods and services, higher borrowing costs and moderating income limit consumers spending appetite.”
Stocks climbed Thursday morning as the report fueled investor hopes for a rate pause.
The Fed in July approved another interest rate hike, lifting the benchmark rate to the highest level since 2001.
Powell signaled last week that additional rate hikes may be on the table this year as policymakers assess whether high inflation has retreated for good.
“Although inflation has moved down from its peak a welcome development it remains too high,” he said. “We are prepared to raise rates further if appropriate, and intend to hold policy at a restrictive level until we are confident that inflation is moving sustainably down toward our objective.”
The families of the two victims of the Manchester synagogue attack have paid tribute to them as “heroic, beloved and cherished”.
Adrian Daulby, 53, and Melvin Cravitz, 66, were killed in the attack at Heaton Park synagogue in Crumpsall on Thursday.
Mr Daulby, a member of the congregation, was shot accidentally when police opened fire on attacker Jihad al Shamie.
The synagogue’s rabbi told Sky News it happened as Mr Daulby “was holding the doors to make sure everyone inside stayed safe”.
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Hero held doors closed to keep everyone safe, rabbi says
His family said he was a “hero” and a “lovely down-to-earth man” whose “final act was one of profound courage and he will forever be remembered for his heroic act”.
The family of Mr Cravitz – a security guard at the synagogue who was attending the service – said he would “do anything to help anyone”.
“He was so kind, caring and always wanted to chat and get to know people,” they said.
“He was devoted to his wife, family and loved his food. He will be sorely missed by his wife, family, friends and community.”
Image: Adrian Daulby. Pic: Family handout
The tributes came as police said three more people – a man and two women – had been arrested on suspicion of terror offences, bringing the total to six.
They also revealed the attacker had been on bail over a suspected rape, but wasn’t on the radar of counter-terror police.
The Independent Office for Police Conduct (IOPC) is investigating the shooting – standard practice when a member of the public is killed.
The investigation would include “whether police may have caused or contributed to the death” of Mr Daulby.
Sir Stephen Watson, the head of Greater Manchester police, confirmed Mr Daulby’s injury appeared to be “a tragic and unforeseen consequence of the urgently required action taken by my officers”.
‘Gentle giant’
Other relatives of Mr Cravitz told Sky News he was a “gentle giant” who “would never harm a fly”.
His cousin, Phil Bentley, said his death was even more tragic as he would never normally be at the synagogue that early.
Image: Melvin Cravitz. Pic: GMP
Hindi Cohen, a friend and neighbour, said he was a “lovely man” with a good sense of humour, adding: “Our kids loved him. He called himself uncle Melvin to my kids.”
One of Mr Daulby’s neighbours was also emphatic in his praise for a man he lived next door to for 20 years.
Abdul Rahimi called him “one of the best guys I’ve ever seen in my life” and a “very, very good man”, who often bought books and toys for children on their street.
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Synagogue attack victim was a ‘fantastic guy’
Another neighbour, Waqas Hussain, said the pair bonded over a shared love of nature, animals and birds.
He said Mr Daulby was a cancer survivor, who lived alone and started going to the synagogue more after his father died a few years ago.
“Just one of them people… so innocent, so approachable and so pure,” he told Sky News.
He said his friend hadn’t been fasting for health reasons and was debating whether or not to go the synagogue on Thursday.
Increased police patrols are being put in place near synagogues across the country following the atrocity.
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A vigil for the victims was also held in Manchester on Friday – but Deputy Prime Minister David Lammy walked out to shouts of “shame on you” and boos from a few in the crowd.
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Deputy PM heckled at vigil
“Go to Palestine but leave us alone,” one person shouted.
Another protester shouted “my children’s school was closed today – you allowed this to happen.”
Thirty-five-year-old Jihad al Shamie was named as the attacker on Thursday and is believed to be of Syrian descent.
He is understood to have been granted British citizenship when he was around 16, having entered the UK as a young child.
Police shot him dead seven minutes after the first emergency call as they feared he was wearing an explosive device – later identified as a fake.
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Timeline: How terror attack unfolded
Three men also remain in hospital after the attack, with two of them named as Yoni Finlay and Andrew Franks.
One suffered a stab wound, a second was hurt after being hit by a car that al Shamie is said to have driven towards the synagogue, and the third suffered a gunshot wound.
One of the injured victims was working for the Community Security Trust (CST), a charity which provides security to the Jewish community.
Its chief executive, Mark Gardner, said: “One of our CST personnel was seriously injured in yesterday’s terror attack at Heaton Park Synagogue.
“We pray for his continuing recovery and salute the courage of all those who helped stop the terrorist from getting into the shul.”
Sean “Diddy” Combs has been sentenced to more than four years in prison over prostitution charges relating to his former girlfriends and male sex workers.
Judge Arun Subramanian handed down his 50-month sentence – including a $500,000 fine – at the end of a long and emotional full-day hearing, which saw the hip-hop mogul speak out for the first time in court.
Combs, 55, admitted his past behaviour was “disgusting, shameful and sick”, and apologised personally to Cassie Ventura and “Jane”, another former girlfriend who testified anonymously during the trial.
Image: Sean Diddy Combs broke down and cried at one point during the sentencing hearing. Pic: AP/ Elizabeth Williams
But despite his plea for “mercy” and expressions of remorse, the judge told him he had abused his “power and control” with women he professed to love – and rejected the defence’s characterisation that “freak off” sexual encounters were consensual experiences, that his was just a “sex, drugs and rock’n’roll story”.
Addressing Cassie and “the other brave survivors who came forward”, the judge said. “We heard you… I can only say your families are proud of you and your children will be proud of you.
“You weren’t just talking to the jury you were talking to the women who feel powerless – you gave them a voice, you stood up to power, it’s not easy.”
Combs showed no visible change of emotion as his sentence was delivered, looking straight ahead as the judge spoke. Afterwards, he seemed subdued – with no sign of the enthusiasm or feeling showed earlier in the day.
Image: Six of Combs’s children, including Chance, right, and twins Jessie and D’Lila Star, addressed the judge in support of their father. Pic: AP/Richard Drew
Ahead of his own speech, the court heard from six of his seven children – causing the rapper to break down in tears as they spoke about how much they loved him, how he has changed, and how much they and their younger two-year-old sister need him.
The sentencing brings to an end a sordid case that featured harrowing testimony – not just from Cassie and Jane, but also from former employees and associates of Combs.
He was convicted in July of flying people around the US and abroad for sexual encounters, including his then girlfriends and male sex workers, in violation of prostitution laws.
However, he was cleared of more serious charges of racketeering conspiracy and sex-trafficking that could have put him in jail for life.
‘I hate myself right now’
Image: Diddy cried as his children read impact statements. Pic: Reuters/Jane Rosenberg
He expanded on this in court, saying he wanted to “personally apologise” to Cassie for “any harm” he caused her “emotionally or physically”, and to Jane – and all victims of domestic violence.
He told the court he got “lost in my excess and lost in my ego”, but since his time in prison he has been “humbled and broken to my core”.
Combs continued: “I hate myself right now… I am truly sorry for it all.”
Image: Janice Combs supported her son in court. Pic: AP Photo/Eduardo Munoz Alvarez
Once one of the most influential hip-hop producers of the 1990s and 2000s – the founder of Bad Boy Records and a Grammy-winning artist in his own right – he has led a very different life since his high-profile arrest.
He was facing a maximum of 20 years in prison for the prostitution-related charges, so the sentence is towards the lower end of the scale.
Prosecutors had argued he should spend at least 11 years behind bars, while Combs’s lawyers were calling for him to be freed almost immediately due to time already served since his arrest just over a year ago.
Christy Slavik, for the prosecution, told the judge sparing the rapper serious prison time would excuse years of violence.
‘Make the most of that second chance’
Image: Judge Arun Subramanian told Combs he will still have a life after prison if he takes his second chance. Pic: Elizabeth Williams via AP
The judge, who had rejected bail for the rapper several times before sentencing, told him that he would get through his time in prison. It will be hard, he said, but he will still “have a life afterwards”.
Combs has “a chance for renewal and redemption”, he added. “What went wrong can be made right… I am counting on you to make the most of that second chance.”
Outside the courthouse, journalists and onlookers swarmed the pavements as TV crews stood in a long row across the street, echoing scenes from the two-month high-profile trial.
It included four days of testimony from Cassie, now Cassie Ventura Fine, who told the court she was coerced and sometimes blackmailed into sexual encounters with male sex workers, referred to as “freak offs”.
Cassie responds
Image: Diddy and Cassie at the premiere for a film she starred in, just days after the 2016 hotel incident. Pic: zz/Galaxy/STAR MAX/IPx/ AP
Jurors were also shown video clips of Combs dragging and beating her in a Los Angeles hotel hallway after one of those sessions in 2016.
Combs referred to this in court, saying it was a “heavy burden” that he will forever carry, and that he was “sick from drugs” and “out of control” at the time, “lost in my excess and lost in my ego”.
Ahead of the sentencing, Cassie also submitted a letter to the judge, calling Combs a “manipulator” and saying she would fear for her safety should he be immediately released.
Responding to the sentence, her lawyers Douglas Wigdor and Meredith Firetog (Wigdor LLP), said: “While nothing can undo the trauma caused by Combs, the sentence imposed today recognises the impact of the serious offences he committed.
“We are confident that with the support of her family and friends, Ms Ventura will continue healing knowing that her bravery and fortitude have been an inspiration to so many.”