Connect with us

News

Inflation watch: US consumers hit with more price rises in May | Business and Economy News

Published

on


United States consumer prices rose a brisker-than-expected 0.6 percent in May, the US Bureau of Labor Statistics said on Thursday, heaping more pain on American households after April’s 0.8 percent rise.

An inflation surge is circling the globe and the United States is feeling the squeeze.

US consumer prices rose a brisker-than-expected 0.6 percent in May, the US Bureau of Labor Statistics said on Thursday, heaping more pain on American households after April’s 0.8 percent rise.

Rising inflation is a burden for consumers, especially low-wage earners because it erodes their purchasing power and eats up a larger portion of their disposable income.

As COVID-19 vaccination rates increase, restrictions are eased and government stimulus payments lure consumers out of their pandemic hibernation, bottlenecks are forming in supply chains that leave businesses scrambling to keep up with the sudden surge in demand.

All that spells inflation, but economists are divided over whether price spikes will prove temporary.

US Federal Reserve policymakers believe that higher inflation will prove temporary and that there is no need to raise interest rates to head off an out-of-control upward inflation spiral.

“Price increases stemming from the reopening of the economy and ongoing supply chain bottlenecks will keep the rate of inflation elevated and sticky as supply/demand imbalances are only gradually resolved,” Kathy Bostjancic, chief US economist for Oxford Economics, wrote in a note to clients. “While we share the Fed’s view that this isn’t the start of an upward inflationary spiral, we look for inflation to remain persistently above 2% through 2022.”

Though prices are moving up, many American workers are finding themselves in a stronger position to demand higher wages.

The number of job openings in the US hit a record high of 9.3 million in April, while more than 7,300 US employers reported their most optimistic hiring outlook since 2000, according to a survey by workforce solutions company ManpowerGroup.

With so many jobs going begging, workers have more leverage over potential employers than they have had in recent years and many of them are looking for a boost in pay.

Average hourly earnings for employees on private payrolls increased by 15 cents in May to $30.33, according to the Bureau of Labor Statistics. That boost followed an increase of 21 cents in April.

Deeper dive

About a third of May’s consumer price spike was driven by used cars and trucks, a sector where prices swelled 7.3 percent last month.

Prices of food, meanwhile, rose 0.4 percent in May – in line with April’s rise.

Energy prices were unchanged, with declining petrol prices offsetting spikes in electricity and natural gas.

Over the past 12 months, the all items index for consumer prices rose 5 percent – the largest annual increase since 2008. The latest reading continues a trend that has seen the index rise every month since January.

Core inflation, which strips out more volatile food and energy prices, has also been moving up every month since the beginning of the year and spiked 0.7 percent last month after rising 0.9 percent in April.

Core inflation was up 3.8 percent over the last 12-months – the largest annual increase since June 1992.



Source – www.aljazeera.com

Advertisement

News

Air raid kills dozens in Ethiopia’s Tigray region, say witnesses | Ethiopia News

Published

on

By


Witnesses say Tuesday’s attack targeted a busy market in Ethiopia’s northern Tigray village of Togoga.

Dozens of people have been reportedly killed after an air attack targeted a busy market in Ethiopia’s northern Tigray village of Togoga on Tuesday, a day after residents said fighting had flared north of the regional capital Mekelle.

The bomb hit the market at approximately 1pm (10:00 GMT), according to a woman who told Reuters news agency that her husband and two-year-old daughter were injured in the attack.

“We didn’t see the plane but we heard it,” she said. “When the explosion happened, everyone ran out. Later, we came back and were trying to pick up the injured.”

Two doctors and a nurse in Mekelle told the Associated Press (AP) they were unable to confirm how many people were killed, but one doctor said health workers at the scene reported “more than 80 civilian deaths”.

The health workers spoke on the condition of anonymity for fear of retaliation.

Increased fighting

The reported air attack comes amid some of the fiercest fighting in the Tigray region since the conflict began in November as Ethiopian forces supported by those from neighbouring Eritrea pursue Tigray’s former leaders.

Reuters reported that Ethiopian military spokesperson Colonel Getnet Adane did not confirm or deny the incident. He said air attacks were a common military tactic and the force does not target civilians.

Three other health workers told Reuters that the Ethiopian military was blocking ambulances from reaching the scene.

Wounded patients being treated at Mekele’s Ayder Hospital told health workers that a plane dropped a bomb on Togoga’s marketplace.

A nurse at the hospital said the wounded included a two-year-old child with “abdominal trauma” and a six-year-old. She added that an ambulance carrying a wounded baby to Mekelle was blocked for two hours and the baby died on the way.

Hailu Kebede, foreign affairs head for the Salsay Woyane Tigray opposition party and who comes from Togoga, told AP that one fleeing witness had counted more than 30 bodies and other witnesses were reporting more than 50 people killed.

“It was horrific,” said an official for an international aid group who told the AP he had spoken with a colleague and others at the scene.

“We don’t know if the jets were coming from Ethiopia or Eritrea. They are still looking for bodies by hand. More than 50 people were killed, maybe more.”

Witnesses said several more ambulances were turned back later in the day and on Wednesday morning, but one group of medical workers reached the site on Tuesday evening via a different route.

“We have been asking, but until now we didn’t get permission to go, so we don’t know how many people are dead,” said one of the doctors in Mekelle.

Another doctor said the Red Cross ambulance he was travelling in on Tuesday, trying to reach the scene, was shot at twice by Ethiopian soldiers who held his team for 45 minutes before ordering them back to Mekelle.

“We are not allowed to go,” he said. “They told us whoever goes, they are helping the troops of the TPLF.”

The TPLF refers to the Tigray People’s Liberation Front, which governed Tigray until it was overthrown by a federal government offensive in November. The subsequent fighting has killed thousands and forced more than two million people from their homes.

While the United Nations has said all sides have been accused of abuses, Ethiopian and Eritrean soldiers have been repeatedly accused by witnesses of looting and destroying health centres across Tigray and denying civilians access to care.

This month, humanitarian agencies warned that 350,00 people in Tigray are facing famine. Aid workers have said they have been repeatedly denied access to several parts of the region by soldiers.

The government of Prime Minister Abiy Ahmed says it has nearly defeated the rebels. But forces loyal to the TPLF recently announced an offensive in parts of Tigray and have claimed a string of victories.



Source – www.aljazeera.com

Continue Reading

News

Deadly blast in Pakistan near residence of armed group founder | Pakistan News

Published

on

By


Three killed and 13 others wounded after explosion near house of Lashkar-e-Taiba founder Hafiz Saeed in Lahore.

At least three people have been killed and 13 others wounded after an explosion near the residence of the founder of armed group, Lashkar-e-Taiba (LeT) in the eastern Pakistani city of Lahore, hospital and police officials said.

The blast took place in the Johar Town area of the city, Pakistan’s second largest, on Wednesday, provincial police chief Inam Ghani said.

“The [Counter Terrorism Department] has taken over the site of the attack completely,” Ghani told reporters at the site of the blast shortly after it took place.

“The CTD will ascertain what it was, what material it was, what was used … and secondly, was it an [improvised explosive device] lodged in a vehicle, and whether it is a suicide attack or not.”

Ghani said a police picket that was set up near the home of a “high-value target” was the apparent target of the attack.

Television footage from the scene showed significant damage to a number of homes near the blast site [Arif Ali / AFP]

A residence belonging to Hafiz Muhammad Saeed, the founder of LeT that is designated as a “terrorist” group under Pakistani law and by the United Nations, is located near the site of the blast.

“The biggest target that we see right now is that they are targeting law enforcement agencies,” Ghani said.

Television footage from the scene showed massive damage to a number of homes near the blast site, with windows smashed in, doors blown open and extensive damage to buildings close to the blast epicentre.

At least 16 wounded people were shifted to the nearby government-run Jinnah Hospital, with three of them succumbing to their wounds, a hospital official, speaking on condition of anonymity, told Al Jazeera.

Six of the wounded were in a critical condition, the official said.

No one immediately claimed responsibility for the attack.

Security officials inspect the site of the blast near Saeed’s residence [Rahat Dar/EPA]

LeT founder Saeed is blamed by the United States and India for being the “mastermind” behind the 2008 Mumbai attacks, which killed more than 160 people in a series of coordinated bombings and shootings across the Indian financial capital.

Saeed has denied any wrongdoing and currently runs the charitable wing of the LeT, called Jamaat-ud-Dawa (JuD), which has been designated by both Pakistan and the UN as a front for the armed group.

He was convicted and jailed last year in a series of terrorism financing cases lodged by the Pakistani government as it tightened financial laws and restrictions as part of its review by the Financial Action Task Force (FATF) inter-governmental body.

A JuD spokesperson told the Reuters news agency that Saeed was in prison and therefore not in the residence that may have been targeted in Wednesday’s bombing.



Source – www.aljazeera.com

Continue Reading

News

Explainer: What is the Delta Plus variant of COVID-19? | Coronavirus pandemic News

Published

on

By


Scientists worry the mutation, coupled with other existing features of the Delta variant, could make it more transmissible.

India on Wednesday said it has found about 40 cases of the Delta coronavirus variant carrying a mutation that appears to make it more transmissible, and advised states to increase testing.

Here is what we know about the variant.

What is Delta Plus?

The variant, called Delta Plus in India, was first reported (PDF) in a Public Health England bulletin on June 11.

It is a sublineage of the Delta variant first detected in India and has acquired the spike protein mutation, called K417N, which is also found in the Beta variant first identified in South Africa.

Some scientists worry that the mutation, coupled with other existing features of the Delta variant, could make it more transmissible.

“The mutation K417N has been of interest as it is present in the Beta variant (B.1.351 lineage), which was reported to have immune evasion property,” India’s health ministry said in a statement.

Shahid Jameel, a top Indian virologist, said the K417N was known to reduce the effectiveness of a cocktail of therapeutic monoclonal antibodies.

Where all it has been found?

As of June 16 (PDF), at least 197 cases have been found in 11 countries – Britain (36), Canada (1), India (8), Japan (15), Nepal (3), Poland (9), Portugal (22), Russia (1), Switzerland (18), Turkey (1), the United States (83).

India said on Wednesday about 40 cases of the variant have been observed in the states of Maharashtra, Kerala and Madhya Pradesh, with “no significant increase in prevalence”. The earliest case in India is from a sample taken on April 5.

Britain said its first five cases were sequenced on April 26 and they were contacts of individuals who had travelled from, or transited through, Nepal and Turkey.

No deaths were reported among the United Kingdom and Indian cases.

What are the worries?

Studies are continuing in India and globally to test the effectiveness of vaccines against this mutation.

“WHO is tracking this variant as part of the Delta variant, as we are doing for other Variants of Concern with additional mutations,” the World Health Organization (WHO) said in a statement sent to Reuters news agency.

“For the moment, this variant does not seem to be common, currently accounting for only a small fraction of the Delta sequences … Delta and other circulating Variants of Concern remain a higher public health risk as they have demonstrated increases in transmission,” it said.

But India’s health ministry warned that regions where it has been found “may need to enhance their public health response by focusing on surveillance, enhanced testing, quick contact-tracing and priority vaccination”.

There are worries Delta Plus would inflict another wave of infections on India after it emerged from the world’s worst surge in cases only recently.

“The mutation itself may not lead to a third wave in India – that also depends on COVID-appropriate behaviour, but it could be one of the reasons,” said Tarun Bhatnagar, a scientist with the state-run Indian Council of Medical Research.



Source – www.aljazeera.com

Continue Reading

Trending