A key measurement for US inflation released on Friday showed that prices continued to cool in December as consumer spending dipped, clearing the way for the Federal Reserve to issue a smaller interest rate increase when it meets next week.
The personal consumption expenditures (PCE) price index, the Fed's preferred inflation metric, rose by 5 per cent in December year-on-year, down from November's rate of 5.5 per cent, data from the Commerce Department showed.
The PCE price index ticked up by 0.1 per cent from November to December. Prices for goods decreased 0.7 per cent and energy costs decreased 5.1 per cent. Prices for services and food increased.
Core PCE, which excludes food and energy, increased by 4.4 per cent year-on-year, down from 4.7 per cent in November.
The latest data point to a decrease in spending, as Americans appear to be feeling the pain of rising costs.
PCE is the Fed's preferred gauge of inflation as it provides a more comprehensive understanding of consumer behaviour and how households react to changing prices.
The Commerce Department's report showed that consumer spending dipped by 0.2 per cent for the month of December, while personal incomes rose by 0.2 per cent.
The dip in consumer spending increases the risk of the US entering a recession, as it shows that households are changing their behaviour — such as purchasing cheaper goods and services — in reaction to higher prices.
Goldman Sachs estimates that the probability of the US entering a recession this year is 35 per cent.
The Fed raised its interest rate seven times last year to the range of 4.25 per cent to 4.5 per cent, increasing borrowing costs such as mortgages and car loans.
Perhaps nothing has been hurt more by the Fed than the housing market, which saw mortgage rates climb to more than 7 per cent last year. The average long-term mortgage rate this week dipped to 6.13 per cent, showing some signs of relief, according to mortgage buyer Freddie Mac.
Policy officials are expected to raise interest rates by a quarter of a percentage point when they meet next week.
Shubh Mangal Saavdhan
Directed by: RS Prasanna
Starring: Ayushmann Khurrana, Bhumi Pednekar
The biog
Favourite food: Tabbouleh, greek salad and sushi
Favourite TV show: That 70s Show
Favourite animal: Ferrets, they are smart, sensitive, playful and loving
Favourite holiday destination: Seychelles, my resolution for 2020 is to visit as many spiritual retreats and animal shelters across the world as I can
Name of first pet: Eddy, a Persian cat that showed up at our home
Favourite dog breed: I love them all - if I had to pick Yorkshire terrier for small dogs and St Bernard's for big
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Scoreline
Bournemouth 2
Wilson 70', Ibe 74'
Arsenal 1
Bellerin 52'
More on Quran memorisation:
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Labour dispute
The insured employee may still file an ILOE claim even if a labour dispute is ongoing post termination, but the insurer may suspend or reject payment, until the courts resolve the dispute, especially if the reason for termination is contested. The outcome of the labour court proceedings can directly affect eligibility.
- Abdullah Ishnaneh, Partner, BSA Law
Jetour T1 specs
Engine: 2-litre turbocharged
Power: 254hp
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The specs
Engine: 6.2-litre V8
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The Kingfisher Secret
Anonymous, Penguin Books
Salah in numbers
€39 million: Liverpool agreed a fee, including add-ons, in the region of €39m (nearly Dh176m) to sign Salah from Roma last year. The exchange rate at the time meant that cost the Reds £34.3m - a bargain given his performances since.
13: The 25-year-old player was not a complete stranger to the Premier League when he arrived at Liverpool this summer. However, during his previous stint at Chelsea, he made just 13 Premier League appearances, seven of which were off the bench, and scored only twice.
57: It was in the 57th minute of his Liverpool bow when Salah opened his account for the Reds in the 3-3 draw with Watford back in August. The Egyptian prodded the ball over the line from close range after latching onto Roberto Firmino's attempted lob.
7: Salah's best scoring streak of the season occurred between an FA Cup tie against West Brom on January 27 and a Premier League win over Newcastle on March 3. He scored for seven games running in all competitions and struck twice against Tottenham.
3: This season Salah became the first player in Premier League history to win the player of the month award three times during a term. He was voted as the division's best player in November, February and March.
40: Salah joined Roger Hunt and Ian Rush as the only players in Liverpool's history to have scored 40 times in a single season when he headed home against Bournemouth at Anfield earlier this month.
30: The goal against Bournemouth ensured the Egyptian achieved another milestone in becoming the first African player to score 30 times across one Premier League campaign.
8: As well as his fine form in England, Salah has also scored eight times in the tournament phase of this season's Champions League. Only Real Madrid's Cristiano Ronaldo, with 15 to his credit, has found the net more often in the group stages and knockout rounds of Europe's premier club competition.
Real estate tokenisation project
Dubai launched the pilot phase of its real estate tokenisation project last month.
The initiative focuses on converting real estate assets into digital tokens recorded on blockchain technology and helps in streamlining the process of buying, selling and investing, the Dubai Land Department said.
Dubai’s real estate tokenisation market is projected to reach Dh60 billion ($16.33 billion) by 2033, representing 7 per cent of the emirate’s total property transactions, according to the DLD.
KILLING OF QASSEM SULEIMANI
Key findings of Jenkins report
- Founder of the Muslim Brotherhood, Hassan al Banna, "accepted the political utility of violence"
- Views of key Muslim Brotherhood ideologue, Sayyid Qutb, have “consistently been understood” as permitting “the use of extreme violence in the pursuit of the perfect Islamic society” and “never been institutionally disowned” by the movement.
- Muslim Brotherhood at all levels has repeatedly defended Hamas attacks against Israel, including the use of suicide bombers and the killing of civilians.
- Laying out the report in the House of Commons, David Cameron told MPs: "The main findings of the review support the conclusion that membership of, association with, or influence by the Muslim Brotherhood should be considered as a possible indicator of extremism."
