US consumer inflation cooled to 7.7 per cent over the last 12 months, giving the Federal Reserve a path to east its interest-rate hikes over the coming months. EPA
US consumer inflation cooled to 7.7 per cent over the last 12 months, giving the Federal Reserve a path to east its interest-rate hikes over the coming months. EPA
US consumer inflation cooled to 7.7 per cent over the last 12 months, giving the Federal Reserve a path to east its interest-rate hikes over the coming months. EPA
US consumer inflation cooled to 7.7 per cent over the last 12 months, giving the Federal Reserve a path to east its interest-rate hikes over the coming months. EPA

US inflation cools slightly in October to 7.7%


Kyle Fitzgerald
  • English
  • Arabic

US consumer inflation cooled slightly to 7.7 per cent over the past 12 months, easing pressure on households and offering the Federal Reserve room to slow the pace of its interest-rate hikes in the coming months.

The year-over-year gain was the smallest since January, the US Labour Department said on Thursday. Consumer inflation rose 0.4 per cent in October, the same increase as in September, the department reported.

So-called core inflation — which excludes food and energy prices — rose 6.3 per cent year-on-year.

The report showed signs of hopes that inflation in the US may have reached its peak from 9.1 per cent over the summer.

"Today’s report shows that we are making progress on bringing inflation down, without giving up all of the progress we have made on economic growth and job creation," President Joe Biden said in a statement.

Following Thursday's inflation data, The Dow Jones Industrial Average rose 749.97 points at the open. The S&P was up by 117.28 points and the Nasdaq Composite saw a bump of 435.98 points.

While the deceleration in core prices is welcome news, inflation remains high. Fed Chair Jerome Powell, who said earlier this month that officials need to see a consistent pattern of weaker monthly inflation, also indicated interest rates will likely peak higher than policymakers previously envisioned.

The Fed has raised its interest rates six times this year as it seeks to tamp down on the soaring costs of goods in the US. The central bank's latest interest-rate hike raised its short-term rate between 3.75 per cent to 4 per cent, its highest in 14 years.

Following Thursday's report, traders expect the Fed to raise its short-term rate by 50 basis points when it next meets in December, the CME Group's FedWatch tool shows.

Declines in the price gauges for medical care services and used vehicles restrained the core measure of inflation.

Higher shelter costs contributed to more than half of the increase in overall Consumer Price Index.

Even with prices cooling last month, the Fed is expected to continue issuing interest-rate hikes. In its most recent meeting, however, it noted that it would consider “the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments” when making future decisions.

Former Treasury officials, bankers and billionaires have warned that raising borrowing rates for expenses such as mortgages and car purchases will plunge the US economy into a recession.

Mr hit back against recession fears while speaking to reporters on Wednesday.

“We’re not anywhere near a recession right now, in terms of the growth,” Mr Biden said.

“I think we can have what most economists call a soft landing, and I’m convinced that we’re going to be able to gradually bring down prices so that they in fact, end up with us not having to move into recession.”

The Fed's actions have had a profound effect on the housing market. Mortgage rates in the US topped 7 per cent for the first time in more than 20 years, mortgage buyer Freddie Mac reported last week. As a result, home sales in the country have dipped for eight consecutive months.

Another inflation report and jobs report will be released before the Federal Open Market Committee's final meeting this year.

THREE
%3Cp%3EDirector%3A%20Nayla%20Al%20Khaja%3C%2Fp%3E%0A%3Cp%3EStarring%3A%20Jefferson%20Hall%2C%20Faten%20Ahmed%2C%20Noura%20Alabed%2C%20Saud%20Alzarooni%3C%2Fp%3E%0A%3Cp%3ERating%3A%203.5%2F5%3C%2Fp%3E%0A
UAE currency: the story behind the money in your pockets
Quick%20facts
%3Cul%3E%0A%3Cli%3EStorstockholms%20Lokaltrafik%20(SL)%20offers%20free%20guided%20tours%20of%20art%20in%20the%20metro%20and%20at%20the%20stations%3C%2Fli%3E%0A%3Cli%3EThe%20tours%20are%20free%20of%20charge%3B%20all%20you%20need%20is%20a%20valid%20SL%20ticket%2C%20for%20which%20a%20single%20journey%20(valid%20for%2075%20minutes)%20costs%2039%20Swedish%20krone%20(%243.75)%3C%2Fli%3E%0A%3Cli%3ETravel%20cards%20for%20unlimited%20journeys%20are%20priced%20at%20165%20Swedish%20krone%20for%2024%20hours%3C%2Fli%3E%0A%3Cli%3EAvoid%20rush%20hour%20%E2%80%93%20between%209.30%20am%20and%204.30%20pm%20%E2%80%93%20to%20explore%20the%20artwork%20at%20leisure%3C%2Fli%3E%0A%3C%2Ful%3E%0A
A MINECRAFT MOVIE

Director: Jared Hess

Starring: Jack Black, Jennifer Coolidge, Jason Momoa

Rating: 3/5

MATCH INFO

Uefa Champions League quarter-final second leg:

Juventus 1 Ajax 2

Ajax advance 3-2 on aggregate

WHAT ARE NFTs?

     

 

    

 

   

 

Non-fungible tokens (NFTs) are tokens that represent ownership of unique items. They allow the tokenisation of things such as art, collectibles and even real estate.

 

An NFT can have only one official owner at one time. And since they're minted and secured on the Ethereum blockchain, no one can modify the record of ownership, not even copy-paste it into a new one.

 

This means NFTs are not interchangeable and cannot be exchanged with other items. In contrast, fungible items, such as fiat currencies, can be exchanged because their value defines them rather than their unique properties.

 
COMPANY PROFILE
Name: ARDH Collective
Based: Dubai
Founders: Alhaan Ahmed, Alyina Ahmed and Maximo Tettamanzi
Sector: Sustainability
Total funding: Self funded
Number of employees: 4
FIXTURES

UAE’s remaining fixtures in World Cup qualification R2
Oct 8: Malaysia (h)
Oct 13: Indonesia (a)
Nov 12: Thailand (h)
Nov 17: Vietnam (h)
 

MATCH INFO

Uefa Champions League semi-final, second leg result:

Ajax 2-3 Tottenham

Tottenham advance on away goals rule after tie ends 3-3 on aggregate

Final: June 1, Madrid

F1 The Movie

Starring: Brad Pitt, Damson Idris, Kerry Condon, Javier Bardem

Director: Joseph Kosinski

Rating: 4/5

The%20specs
%3Cp%3E%3Cstrong%3EEngine%3A%3C%2Fstrong%3E%203.0-litre%20six-cylinder%20turbo%20(BMW%20B58)%3Cbr%3E%3Cstrong%3EPower%3A%3C%2Fstrong%3E%20340hp%20at%206%2C500rpm%3Cbr%3E%3Cstrong%3ETorque%3A%3C%2Fstrong%3E%20500Nm%20from%201%2C600-4%2C500rpm%3Cbr%3E%3Cstrong%3ETransmission%3A%3C%2Fstrong%3E%20ZF%208-speed%20auto%3Cbr%3E%3Cstrong%3E0-100kph%3A%3C%2Fstrong%3E%204.2sec%3Cbr%3E%3Cstrong%3ETop%20speed%3A%3C%2Fstrong%3E%20267kph%3C%2Fp%3E%0A%3Cp%3E%3Cstrong%3EOn%20sale%3A%3C%2Fstrong%3E%20Now%3Cbr%3E%3Cstrong%3EPrice%3A%3C%2Fstrong%3E%20From%20Dh462%2C189%3Cbr%3E%3Cstrong%3EWarranty%3A%3C%2Fstrong%3E%2030-month%2F48%2C000k%3C%2Fp%3E%0A
What the law says

Micro-retirement is not a recognised concept or employment status under Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations (as amended) (UAE Labour Law). As such, it reflects a voluntary work-life balance practice, rather than a recognised legal employment category, according to Dilini Loku, senior associate for law firm Gateley Middle East.

“Some companies may offer formal sabbatical policies or career break programmes; however, beyond such arrangements, there is no automatic right or statutory entitlement to extended breaks,” she explains.

“Any leave taken beyond statutory entitlements, such as annual leave, is typically regarded as unpaid leave in accordance with Article 33 of the UAE Labour Law. While employees may legally take unpaid leave, such requests are subject to the employer’s discretion and require approval.”

If an employee resigns to pursue micro-retirement, the employment contract is terminated, and the employer is under no legal obligation to rehire the employee in the future unless specific contractual agreements are in place (such as return-to-work arrangements), which are generally uncommon, Ms Loku adds.

The National's picks

4.35pm: Tilal Al Khalediah
5.10pm: Continous
5.45pm: Raging Torrent
6.20pm: West Acre
7pm: Flood Zone
7.40pm: Straight No Chaser
8.15pm: Romantic Warrior
8.50pm: Calandogan
9.30pm: Forever Young

What can victims do?

Always use only regulated platforms

Stop all transactions and communication on suspicion

Save all evidence (screenshots, chat logs, transaction IDs)

Report to local authorities

Warn others to prevent further harm

Courtesy: Crystal Intelligence

The specs

Engine: 2.0-litre 4cyl turbo

Power: 261hp at 5,500rpm

Torque: 405Nm at 1,750-3,500rpm

Transmission: 9-speed auto

Fuel consumption: 6.9L/100km

On sale: Now

Price: From Dh117,059

Benefits of first-time home buyers' scheme
  • Priority access to new homes from participating developers
  • Discounts on sales price of off-plan units
  • Flexible payment plans from developers
  • Mortgages with better interest rates, faster approval times and reduced fees
  • DLD registration fee can be paid through banks or credit cards at zero interest rates
Updated: November 10, 2022, 3:13 PM`