UK inflation falls to lowest level since late 2021 as food prices ease further

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UK inflation falls to lowest level since late 2021 as food prices ease further

2024-04-17 15:17 Last Updated At：15:31

LONDON (AP) — Inflation in the U.K. fell to its lowest level in two and a half years in March after a further easing in food prices, official figures showed Wednesday, a development which could further pave the way for a welcome cut in interest rates soon.

Consumer prices rose by 3.2% in the year to March, down from 3.4% in February, the Office for National Statistics said. That's the lowest level since September 2021.

The fall in the annual rate was not as big as anticipated. Economists had predicted a reading of 3.1% for the month.

Inflation is still running higher than the Bank of England’s target of 2% but the direction of the move appears clear. Inflation hit a high above 11% at the end of 2022 in the wake of Russia’s invasion of Ukraine, which led to sharp increases in energy costs.

The fall means the U.K.'s inflation rate is lower than the U.S.'s for the first time in two years. In March, inflation in the U.S. rose to 3.5%.

Inflation is set to fall further in April, possibly to below 2%, as a result of sharply lower domestic energy bills, which economists think could prompt rate-setters at the Bank of England to consider a cut in interest rates in the next few months from the current 16-year high of 5.25%. However, a number of the nine policymakers have warned that the fight against inflation isn't over yet as they expect prices to start rising again in the second half of the year.

“With a further significant drop due next month, inflation should soon return to target and the pressure to cut interest rates will grow," said Simon Pittaway, senior economist at the Resolution Foundation think tank.

The Bank of England, like the U.S. Fed and other central banks around the world, raised interest rates aggressively in late 2021 from near zero to counter price rises first stoked by supply chain issues during the coronavirus pandemic and then by Russia’s invasion of Ukraine.

Higher interest rates — which cool the economy by making it more expensive to borrow, thereby bearing down on spending — have contributed to bringing down inflation worldwide.

Britain’s governing Conservative Party hopes that lower inflation and falling interest rates may trigger a feelgood factor ahead of a general election that has to take place by January 2025. Opinion polls show the main opposition Labour Party way ahead and headed for a big victory over the Conservatives, who have been in power since 2010.

The Latest | It would take until 2040 to rebuild all homes destroyed so far in Gaza, UN report says

2024-05-02 17:17 Last Updated At：17:20

If the Israel-Hamas war stopped today, it would still take until 2040 to rebuild all the homes that have been destroyed in nearly seven months of Israel’s bombardment and ground offensives in the territory, according to United Nations estimates released Thursday.

The United States has pressured Israel to increase aid deliveries during the war, and on Wednesday, Israel reopened a border crossing with hard-hit northern Gaza Strip for the first time since it was damaged at the start of the war.

Meanwhile, on his seventh visit since the latest war between Israel and Hamas broke out in October, U.S. Secretary of State Antony Blinken pressed for a cease-fire deal. The proposed truce would free hostages held by Hamas in exchange for a halt to the fighting and the delivery of much needed food, medicine and water into Gaza. Palestinian prisoners are also expected to be released as part of the deal.

On Oct. 7, Palestinian militants launched an unprecedented attack into southern Israel, killing around 1,200 people — mostly civilians — and abducting around 250 hostages. Israel says militants still hold around 100 hostages and the remains of more than 30 others.

The death toll in Gaza is more than 34,500 Palestinians, according to local health officials, as the territory faces a humanitarian catastrophe. The war has driven around 80% of Gaza’s population of 2.3 million from their homes, caused vast destruction in several towns and cities and pushed northern Gaza to the brink of famine.

Currently:

— Nonstop Mideast coverage of the Israel-Hamas war pauses for protests and police action at U.S. schools.

— Colombia’s president says the country will break diplomatic relations with Israel over the war in Gaza.

— The Biden administration is weighing measures to help Palestinians bring family from the region.

— Blinken presses Hamas to seal cease-fire with Israel, saying “the time is now” for a deal.

Follow AP’s coverage of the war at https://apnews.com/hub/israel-hamas-war

Here's the latest:

BEIRUT — The Gaza Health Ministry said Thursday the bodies of 28 people killed by Israeli strikes were brought to local hospitals over the past 24 hours. Hospitals also received 51 wounded, it said in its daily report.

That brings the overall Palestinian death toll from the Israel-Hamas war to at least 34,596, the ministry said, and 77,816 wounded. The Health Ministry does not distinguish between fighters and civilians in its tallies, but says that women and children make up around two-thirds of those killed.

The Israeli military says it has killed some 13,000 militants, without providing evidence to back up the claim.

AMMAN, Jordan — If the war in Gaza stopped today, it would still take until 2040 to rebuild all the homes that have been destroyed in nearly seven months of Israel’s bombardment and ground offensives in the territory, according to United Nations estimates released Thursday.

“Every additional day that this war continues is exacting huge and compounding costs to Gazans and all Palestinians” said United Nations Development Programme Administrator Achim Steiner.

At least 370,000 housing units in Gaza have been damaged, including 79,000 destroyed completely, according to the new report by the UNDP and the Economic and Social Commission for Western Asia, which details how Israel’s assault, launched after Hamas’ Oct. 7 attack, has devastated the economy of the Palestinian territories, and how the impact will increase the longer the conflict goes on.

After previous Israel-Hamas conflicts, housing was rebuilt at a rate of 992 units year. Even if Israel allows a five-fold increase of construction material to enter Gaza, it would take until 2040 to rebuild the destroyed houses, without repairing the damaged ones, the report said.

In Gaza, the Israeli offensive has virtually shut down the economy, which contracted 81% in the last quarter of 2023. The report said the “productive basis of the economy has been destroyed,” with sectors experienced losses of more than 90%.

Gaza, home to some 2.3 million Palestinians, has been under blockade by Israel and Egypt since Hamas’ 2007 takeover, putting tight controls on what enters and exits the territory. Even before the war, it faced “hyper-unemployment” of 45%, reaching nearly 63% among younger workers. Since the war began, it lost some 201,000 jobs.

The war has also impacted the West Bank, where for months Israel has imposed restrictions on movement. In 2024, the entire Palestinian economy — including both Gaza and the West Bank — has so far contracted 25.8%, and if the war continues the loss will reach 29% by July, equivalent to $7.6 billion, the report said.

BEIRUT — The militant Palestinian group Hamas praised Columbia's announcement that it would break relations with Israel, saying such a move is a recognition of the suffering of Palestinian people.

In its statement Thursday, Hamas called on other leaders of Latin America to cut their countries’ diplomatic relations with Israel, which it described as “a rogue and Fascist entity that is continuing its crimes against our people.”

Historically, Colombia was one of Israel’s closest partners in Latin America. But relations between the two nations cooled since Gustavo Petro was elected as Colombia’s first leftist president in 2022.

Petro announced his government would break diplomatic relations with Israel effective Thursday, describing Israel’s siege of Gaza as “genocide.” He previously suspended purchases of weapons from Israel and compared that country’s actions in Gaza to those of Nazi Germany. Hamas said it valued Petro's stance highly.

Weeks after the Oct. 7 Hamas attack on southern Israel that sparked the current war in Gaza and killed some 1,200 people, Petro recalled Colombia’s ambassador to Israel as he criticized the country’s military offensive.