ReportWire

Tag: Inflation

  • Amazon CEO warns prices have gone up from tariffs

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    Some of the things people buy the most are at their most expensive point of the year as the calendar changes over to 2026. Our get the facts data team dug into what actually caused the prices of some items to go up or go down. Let’s start with beef. Right now, the average price for ground beef is 823 per pound and 967 for steaks, the highest prices for both all year. Several factors like President Trump’s tariffs. Cattle inventories and an aging farming population contributed to the increase, but so did something called the New World screwworm, *** parasitic fly that produced *** deadly disease in some places like Mexico. Another grocery staple that is more expensive now, coffee. Our get the Facts data team found the price rose each month throughout the year, maxing out at 926 cents *** pound. Two of the world’s biggest coffee producers, Brazil and Vietnam, Were impacted by drought and excessive rains earlier this year, which reduced coffee production, and Brazil saw an additional 40% tariff over the summer as well. One of the biggest talking points, especially from President Trump about the state of the economy was egg prices. They are one of the few items tracked that actually are cheapest now. Egg prices saw their biggest price hike in nearly 10 years in January, then rose to an all-time high of 623. Per dozen in March. This was in large part to ongoing bird flu outbreaks. Egg prices would start falling in the summer and are now 286 *** dozen. Some other groceries that saw increases this year, cookies, potato chips, bacon, cheddar cheese, and orange juice. But it wasn’t all increases at the supermarket. Some items are cheaper now compared to January, like pasta, white bread, tomatoes, and strawberries. In Washington, I’m Amy Lou.

    If your next Amazon order seems more expensive, President Donald Trump’s sweeping tariffs may be partially to blame, Amazon CEO Andy Jassy said Tuesday.Like many retailers, Amazon and its vast network of third-party sellers loaded up on inventory ahead of Trump’s tariff rollout last spring. But that supply ran out by the fall, Jassy said in a CNBC interview on the sidelines of the World Economic Forum in Davos, Switzerland.“So you start to see some of the tariffs creep into some of the prices, some of the items,” he said. “Some sellers are deciding that they’re passing on those higher costs to consumers in the form of higher prices, some are deciding that they’ll absorb it to drive demand and some are doing something in between.”The comments are a stark shift from last June, when Jassy said in a CNBC interview that the company had not seen “prices appreciably go up.” That was after Amazon drew the direct ire of Trump and members of his administration following reports that the e-commerce giant planned to display how tariffs were impacting prices.After Trump spoke with Amazon founder Jeff Bezos at the time, a company spokesperson told CNN the move “was never a consideration for the main Amazon.” It was only being considered for certain products on its spinoff site, Haul, which sells items below $30, the company said.On Tuesday, though, Jassy said: “We’re going to do everything we can to work with our selling partners to make prices as low as possible for consumers, but you don’t have endless options.”In a statement, though, the company told CNN that overall price levels have not changed more than expected. “While we are seeing prices for some sellers and some brands go up, overall the prices of products on Amazon have not changed outside of normal fluctuations,“ an Amazon spokesperson said.And the White House said it maintains that foreign exports are footing that tariff bill.“The average tariff imposed by America has increased by almost tenfold under President Trump, and inflation has continued to cool from Biden-era highs,” White House spokesman Kush Desai said in a statement.“The Administration has consistently maintained that foreign exporters who depend on access to the American economy, the world’s biggest and best consumer market, will ultimately pay the cost of tariffs, and that’s what’s playing out,” he added.Amazon isn’t the only retailer warning of higher prices because of tariffs. Walmart, Target and Home Depot and many other companies have publicly said tariffs are making products more expensive. And while overall consumer inflation was modest last year, many businesses surveyed by the Federal Reserve in its latest Beige Book, a collection of anecdotes, warned they’re planning bigger price hikes this year.

    If your next Amazon order seems more expensive, President Donald Trump’s sweeping tariffs may be partially to blame, Amazon CEO Andy Jassy said Tuesday.

    Like many retailers, Amazon and its vast network of third-party sellers loaded up on inventory ahead of Trump’s tariff rollout last spring. But that supply ran out by the fall, Jassy said in a CNBC interview on the sidelines of the World Economic Forum in Davos, Switzerland.

    “So you start to see some of the tariffs creep into some of the prices, some of the items,” he said. “Some sellers are deciding that they’re passing on those higher costs to consumers in the form of higher prices, some are deciding that they’ll absorb it to drive demand and some are doing something in between.”

    The comments are a stark shift from last June, when Jassy said in a CNBC interview that the company had not seen “prices appreciably go up.” That was after Amazon drew the direct ire of Trump and members of his administration following reports that the e-commerce giant planned to display how tariffs were impacting prices.

    After Trump spoke with Amazon founder Jeff Bezos at the time, a company spokesperson told CNN the move “was never a consideration for the main Amazon.” It was only being considered for certain products on its spinoff site, Haul, which sells items below $30, the company said.

    On Tuesday, though, Jassy said: “We’re going to do everything we can to work with our selling partners to make prices as low as possible for consumers, but you don’t have endless options.”

    In a statement, though, the company told CNN that overall price levels have not changed more than expected. “While we are seeing prices for some sellers and some brands go up, overall the prices of products on Amazon have not changed outside of normal fluctuations,“ an Amazon spokesperson said.

    And the White House said it maintains that foreign exports are footing that tariff bill.

    “The average tariff imposed by America has increased by almost tenfold under President Trump, and inflation has continued to cool from Biden-era highs,” White House spokesman Kush Desai said in a statement.

    “The Administration has consistently maintained that foreign exporters who depend on access to the American economy, the world’s biggest and best consumer market, will ultimately pay the cost of tariffs, and that’s what’s playing out,” he added.

    Amazon isn’t the only retailer warning of higher prices because of tariffs. Walmart, Target and Home Depot and many other companies have publicly said tariffs are making products more expensive. And while overall consumer inflation was modest last year, many businesses surveyed by the Federal Reserve in its latest Beige Book, a collection of anecdotes, warned they’re planning bigger price hikes this year.

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  • Real money hacks to use when prices feel out of control – MoneySense

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    In November 2025, Statistics Canada reported that the Consumer Price Index (CPI) was up about 2.2% year‑over‑year, driven by higher grocery and other household prices. Grocery prices alone rose almost 4.7% over the same period—one of the highest increases since late 2023. 

    Meanwhile, surveys show that Canadians are still feeling the squeeze. In late 2025, more than four in five Canadians cited inflation as a top concern, and more than half said their income is not keeping up with rising prices. 

    All of this makes saving money and finding creative ways to stretch the dollar not just desirable, but necessary. Personal finance gurus often offer the same basic advice—drop your daily coffee order, pack your lunch, cancel that subscription—and, yes, those things help. But there are other, more practical ways to put money back in your pocket that you might not be doing yet.

    Below are some everyday hacks based on real tools and experiences Canadians have shared with me—and none of these is sponsored.

    1. Get compensated for flight delays with Airfairness

    Whether you’re heading home for the holidays or trying to grab a last‑minute getaway, flight disruptions are stressful, and expensive. What many travellers don’t realize is that if your flight is delayed more than three hours or cancelled, or you’re denied boarding due to overbooking, you may be entitled to compensation from the airline—and not just with gratuitous food vouchers.

    Airfairness is a Canadian‑based online service that helps passengers claim this compensation—often up to several hundred dollars, without your having to navigate complicated airline rules yourself. It works by checking your flight details against eligibility and then helping submit a claim on your behalf. Companies like Airfairness have helped thousands of travellers recover money they didn’t even know they could claim. 

    If you’ve been out of pocket after a trip went sideways, this is one of those hacks that’s truly money you didn’t know you could have back.

    2. Save on produce with OddBunch.ca

    Grocery prices were one of the bigger pain points for Canadian households in 2025. While the headline inflation rate may look moderate, food prices, especially fresh produce and meat have grown faster than the overall Consumer Price Index. 

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    OddBunch.ca is a great way to cut that cost without sacrificing nutrition. It’s a grocery delivery service available in most provinces (not in Atlantic Canada—yet) that sources “odd” or imperfect fruits and vegetables that don’t meet visual retail standards but are otherwise perfectly good. Because these items would otherwise go to waste, they’re delivered at a significant discount—and it doesn’t matter if the produce isn’t picture‑perfect.

    Many Canadians I’ve spoken to say their weekly grocery costs dropped noticeably once they started using this and similar services for basics like carrots, potatoes, apples and leafy greens.

    3. Cut prescription costs with InnoviCares

    Prescription drugs are a huge part of many household budgets, and brand‑name medications can be shockingly expensive if you’re paying out of pocket. InnoviCares is a free prescription savings card used across Canada that helps you lower the cost of brand‑name medications by applying eligible savings at the pharmacy. 

    You present the card when your pharmacist fills a prescription, and the discount is applied automatically if your medication is covered. The best part? It works in addition to your existing insurance plan, not instead of it, so you don’t have to choose between the two. It’s not available for every drug, but for those where it is, this can mean tens or even hundreds of dollars saved annually, at no cost to you. Millions of Canadians have already used this card to cut their drug costs without switching brands.

    4. Buy used books (even on Amazon) instead of paying full price

    Let’s be honest, books are expensive. Fiction, non‑fiction, textbooks, manuals—they add up. One simple way to save when you want a book but your budget says “maybe later” is to buy it used.

    Platforms like Amazon’s used books marketplace often list the same title at a fraction of the new‑price cost. The books are typically in good condition, may ship at low cost or for free if you have a Prime membership, and you still get the same content for much less. It’s a small habit, but over time it can save a surprising amount while still letting you read what you want, when you want.

    Earning, saving and spending in Canada: A guide for new immigrants

    5. Time rewards offers on credit and loyalty programs

    Most Canadians carry at least one rewards credit card, and many don’t use them strategically. One easy hack is to pay attention to bonus offers, spot promotions and point multipliers, and to time your purchases accordingly.

    Drug stores, gas stations and large retailers, for example, frequently run 4x or 5x points promotions for certain categories. If you’re planning a pharmacy run or a fill‑up anyhow, doing it during a promotion can dramatically increase your points earnings, which you can redeem for travel, statement credits or gift/grocery cards later. This doesn’t mean spending money you wouldn’t otherwise spend, but it does mean you squeeze more value out of everyday expenses.

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    Vickram Agarwal

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  • What Americans think of Trump, the economy one year into second term

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    It’s been one year since President Trump took the oath of office and became the United States’ 47th president. CBS News executive director of elections and surveys Anthony Salvanto has new polling on how Americans feel a year into Trump’s second term.

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  • Under Trump, the picture on prices is a mixed bag

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    President Donald Trump recently said he has “defeated” inflation, while House Democratic Leader Hakeem Jeffries said it’s “skyrocketing out of control.”

    They both can’t be right. So which is it? 

    As Trump finishes the first year of his second term — having won the presidency on a pledge to “get the prices down” — the picture on inflation is more nuanced than he or his critics acknowledge.

    • Year-over-year inflation is down from January 2025 — but only slightly, from 3.0% to 2.7%.

    • The inflation rates for groceries, housing, medical care and clothing haven’t budged from their levels during former President Joe Biden’s final year in office.

    • Prices of many key grocery staples are up, but prices for some specific items — including eggs, bacon, dairy products and bread — have decreased.

    • Electricity costs are up significantly, but gasoline prices have seen a notable decline.

    “Overall, inflation at the start of 2026 is roughly the same as the start of 2025 — no great progress has been made,” said Douglas Holtz-Eakin, president of the American Action Forum, a center-right think tank.

    Americans have signaled they aren’t happy: Consumer sentiment has fallen steadily in recent months and is near all-time lows.

    We examined several elements of inflation at the one-year mark in Trump’s second term.

    The overall picture: Inflation rate is down, slightly

    When Trump was sworn in to his second term in January 2025, year-over-year inflation was 3%. In the most recent month for which data is available, December 2025, it was 2.7% a modest decrease. Today’s inflation rate is higher than it was for most of Trump’s first term, and it’s in the ballpark of where it was for most of Biden’s final year. It also remains higher than the Federal Reserve’s target of 2%.

    Inflation that’s roughly steady defied his critics’ expectations, because they had expected Trump’s high-tariff policy to send prices significantly higher.

    On the other hand, even steady inflation undercuts Trump’s promise of getting prices down. Prices have fallen for some specific items during his second term, but not for most.

    Many key items have seen prices rise, not fall, under Trump

    The price of electricity has risen significantly — almost 7% higher than a year ago. Housing, medical care, and tuition and child care are up by close to 3% year over year. Overall groceries and clothing are up by almost 2% each. Durable goods, which includes items such as appliances and furniture, saw the smallest price increase of any major category, a bit under 1%.

    In some categories, inflation has been more rapid under Trump compared with Biden’s final year. Electricity prices saw the biggest acceleration under Trump. Durable goods’ prices fell during Biden’s final year but have risen under Trump. And groceries and medical care saw price increases that were slightly faster under Trump than during Biden’s last year.

    Many grocery price categories have risen, but some have declined

    Trump has often touted the egg price decline on his watch. With the easing of bird flu, which led to egg shortages, egg prices fell during the second half of 2025.

    Bacon, dairy products and bread also experienced price declines in 2025.

    But prices for other grocery staples rose during 2025, including ground beef, steak, chicken breasts, coffee, fruits and vegetables and sugar and sweets.

    Economic bright spots

    After spending the first 10 months of 2025 in a holding pattern around $3.10 a gallon, gasoline prices have fallen below $2.80 a gallon nationally since November.

    Both new and used car prices are down — slightly — while airfares are down more significantly.

    Although inflation remains elevated, wages on Trump’s watch have so far risen faster than inflation. 

    Dean Baker, cofounder of the liberal Center for Economic and Policy Research, noted an exception: Wage growth has been slower for those with less education and those working in lower-skill jobs, according to the Federal Reserve Bank of Atlanta.

    Overall, Americans are gloomy about inflation

    Americans don’t seem happy about the outlook.

    The University of Michigan Consumer Sentiment index, a leading measurement of how consumers feel about the economy, has fallen for five straight months and now is approaching a record low. The survey began in 1978.

    The record low came when inflation was about 9% under Biden, in mid-2022.

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  • 1 year in, Americans call for more inflation focus from Trump, CBS News poll finds

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    One year in, most Republicans feel President Trump has done more than expected — but Americans overall (including many of his supporters) say there still hasn’t been enough focus on lowering prices. 

    That sentiment has been a regular theme throughout his second term. It matters to Americans because a large majority continues to say their incomes aren’t keeping pace with inflation.

    People say prices, specifically, are the top way they judge the overall economy, so other measures — like the stock market or even jobs — don’t move the needle for them quite the same way that prices do.

    By contrast, Americans today believe the administration puts too much focus on events overseas. 

    Still, despite the net negativity, the views of Mr. Trump and Republicans’ approaches to the economy and immigration issues nonetheless outpace perceptions of the Democrats’ approach.

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    Looking back over that first year, few Americans feel that the president’s policies have made them better off. In fact, more say worse than either the same or better.

    (A year ago, the expectation among many was that Mr. Trump’s policies would improve their finances.)

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    As he talks about the economy of late, the president’s ratings on his handling of it have come off their lows this term. 

    As Mr. Trump has publicly disagreed with some of the Fed’s decisions, a large majority continue to think it’s best for the economy if the Fed makes decisions independently from what the president wants. 

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    Issues related to finances, like the economy, jobs, and inflation, remain high priorities in the minds of Americans. And with recent attention on the events in Minneapolis, as well as those overseas, the issues of immigration and international events have seen a bump up in importance.

    How do you feel about Trump’s presidency?

    Americans are generally mixed on how much the president has done in this first year of his second term; most in his party feel he’s done more than expected. Americans overall say he’s either done more or about what they’d thought.

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    Those who feel he’s done less than expected overall are especially likely to say he’s not focused enough on lowering prices.

    Americans pick a wide range of sentiments to describe how Mr. Trump’s first term has made them feel. “Uneasy” and “frustrated” emerge as top picks; Republicans are more apt to pick “confident” and “satisfied,” and “safe” but not at the rate that Democrats pick words like “uneasy.”

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    Overall Trump approval

    The president’s overall approval hasn’t changed substantially in recent months and has been steady in recent weeks.

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    The past year, Mr. Trump has seen routinely solid approval from his Republican base (especially from MAGA, and especially on immigration) as he does today. But over the course of the year he’s also seen declines among independents and younger people, among others, which has coincided with the declines in views on his handling of the economy and inflation that took place over the year.

    Comparison to Democrats

    Despite the majority disapproval for Trump on the issues, Trump and the Republicans’ approaches to both the economy and immigration still outpace views of the Democrats’ approaches. Plenty say neither or aren’t sure as the nation heads into another election year. 

    While more rank-and-file Democrats unsurprisingly think their party has the better approach, few of them have a lot of confidence in the ability of congressional Democrats to effectively oppose Trump, and their confidence has only decreased from a year ago.

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    This CBS News/YouGov survey was conducted with a nationally representative sample of 2,523 U.S. adults interviewed between January 14-16, 2026. The sample was weighted to be representative of adults nationwide according to gender, age, race, and education, based on the U.S. Census American Community Survey and Current Population Survey, as well as 2024 presidential vote. The margin of error is ±2.3 points.

    Toplines

    CBS News Poll — Jan. 14-16, 2026

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  • Adam Schiff Slams Trump Over Reuters Interview, Midterms & ICE

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    The junior senator from California took to X to counter Trump’s comments on the midterm elections, ICE and the economy

    Suspending midterm elections, sending armed federal agents into American cities and the state of the economy – these were just some of the issues Sen. Adam Schiff (D-CA) touched on in a video responding to President Trump’s latest interview with Reuters.

    In a nearly eight-minute clip posted to X yesterday, the junior senator from California rebuked the president’s suggestion of canceling midterm elections, saying that Trump “knows he’s gonna lose” and is trying to discourage voter and volunteer participation.

    “We’re having a midterm election whether he likes it or not,” Schiff told his 3.3 million followers on X. “Do not let Donald Trump persuade you otherwise.”

    White House Press Secretary Karoline Leavitt later claimed that Trump was “simply joking” and “speaking facetiously,” telling reporters the president was saying, “we’re doing such a great job, maybe we should just keep rolling.”

    Schiff also touched on the state of the economy, which Trump told Reuters was the strongest “in history.”

    “We’re still plagued by high inflation, we’re seeing unemployment numbers tick up,” Schiff said. “Trump has failed to keep his campaign promise to bring down prices on day one or even the first year.”

    While prices for staple goods such as eggs, milk and gas have fallen since Trump took office, overall annual inflation remains above the Federal Reserve’s 2% target, resting at 2.7%, down from 3% in January last year.

    Scroll to continue reading

    The Democratic senator went on to criticize Trump for calling the shooting of Renee Good by an Immigration and Customs Enforcement officer “unfortunate,” while continuing to increase ICE’s presence in American cities.

    “What Trump doesn’t acknowledge is that the provocation he creates by sending armed federal agents into American cities is endangering communities and causing tragic losses of life,” Schiff said.

    He also attacked Trump over blaming Ukraine for failing to reach a peace settlement with Russia and shrugging off bipartisan criticism of threats to invade Greenland and investigate Fed Chair Jerome Powell.

    Schiff’s latest clip is part of a recent campaign to create daily social media videos focused on “identifying something really important that happened today, what we should make of it” and how Democrats can fight back.

    The first-term Senator consistently ranks among the top-performing Democratic lawmakers on social media by embracing what he calls an “all-of-the-above” approach to engaging with digital platforms.

    “We need to make sure people hear our message, and that we’re not just talking to the same people over and over again,” Schiff said in an interview with Axios.

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    Aidan Williams

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  • Anchorage Leaders Propose One-Time Tax Hike to Send Millions to Schools

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    Anchorage city leaders are proposing a one-time tax increase to raise millions of dollars for the Anchorage School District, which faces an $83 million budget shortfall.

    Mayor Suzanne LaFrance said she’s requesting the Assembly set aside a slate of revenue proposals, including her office’s proposed 3% sales tax, in order to focus on the $12 million education tax levy.

    “Over the last several months, we have been having a vital conversation around the municipality’s long-term fiscal health and the need to diversify our revenue, but the crisis facing our schools is too urgent to wait,” LaFrance said at a news conference Monday morning.

    If approved by the Assembly, the tax would go on the April city ballot. If voters pass the tax, city officials say Anchorage property owners should expect an increase of $27.40 per $100,000 of assessed property tax value.

    ASD Superintendent Jharrett Bryantt said, over the past decade, inflation has made budgeting difficult for the district, which has seen declining enrollment and a large exodus of teachers. The state Legislature approved an increase to per-student funding last year, even overriding a veto from Gov. Mike Dunleavy to keep the funding intact, but Bryantt said it doesn’t fully fill the gap.

    “While the $700 increase did provide relief, it did not fully restore what schools have lost,” Bryantt said. “As a result, even though we’re in the process of making significant reductions outside of the classroom, deeper than we’ve cut in many, many years, ASD is still facing difficult choices for the ’26-’27 budget.”

    State law puts a cap on how much a city can tax for education, and Anchorage typically taxes to that limit. However, the per-student funding increase at the state level allows Anchorage officials to increase the amount the city taxes for education, Bryantt said.

    He said the money from the tax levy would go entirely to addressing high class sizes.

    “If voters approve this levy, I will commit to directing these dollars to teaching positions and essential student services,” Bryantt said. “Manageable class sizes are at the top of the list of what our parents desire for their children.”

    The proposed tax levy comes at the expense of LaFrance’s proposal for a 3% sales tax, which she initially wanted the Assembly to put on the spring ballot. Her administration has said the city faces a fiscal cliff, and funding from the sales tax would’ve gone toward child care, housing, public safety, capital projects and property tax relief.

    LaFrance said the tax levy is a more immediate solution to support another struggling city service: education.

    “We believe it is too much to have two revenue measures on the ballot,” LaFrance said. “A sales tax proposal won’t generate revenue for one and a half to two years or so, whereas the levy will be immediate.”

    Though LaFrance is setting aside her sales tax proposal, for now, she said the city still faces a tough financial future.

    “We are still approaching the fiscal cliff, and the municipality faces budget gaps in the next few years,” LaFrance said. “We will be presenting scenarios for potential service cuts.”

    Assembly members plan to introduce the tax levy proposal during their meeting Tuesday night, said Vice Chair Anna Brawley. Brawley is one of the co-sponsors of the tax levy, along with members Erin Baldwin Day and Felix Rivera. In order to put the tax on the April ballot, eight members would need to approve it by Jan. 27. Brawley also introduced a 2% increase to the city’s bed tax, but she said she’s willing to set her proposal and the mayor’s sales tax proposal aside to focus on education funding.

    “I know this conversation is not over, and so for my part, I am happy to set aside the revenue measure for the time being,” Brawley said. “But I will work with my colleagues, with the mayor, and with others in the community, to really continue that conversation and bring forward, you know, what kind of city do we want to be in the future.”

    Bryantt said the tax levy won’t fully address the district’s budget shortfall, but he’s hopeful it will hold the district over while state leaders work on a long-term budget solution.

    “We do anticipate that there will be a change in state leadership as we look ahead towards the governor’s race, and we are yearning for a long-range fiscal vision and fiscal plan for the state and specifically for education,” Bryantt said.

    Anchorage’s municipal election is scheduled for April 7.

    ___ This story was originally published by Alaska Public Media and distributed through a partnership with The Associated Press.

    Copyright 2026 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

    Photos You Should See – January 2026

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  • Chew on this: U.S. food prices are still up 19% since 2022

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    Although inflation has cooled markedly since U.S. prices surged during the pandemic, high food costs continue to give consumers a stomachache. 

    Food prices, which outpaced overall inflation for much of last year, rose in December at an annual rate of 3.1%. That remains significantly above the 2.7% for all goods, according to the latest Consumer Price Index data. On a monthly basis, food prices rose 0.7% last month — the largest jump since September 2022.

    “December’s CPI report reinforces that price pressure is edging higher across key consumer product categories that matter most to consumers,” Rob Holston, EY Global and Americas consumer products leader, said in a report. 

    CPI tracks the rate at which prices rise over time. But consumers’ perception of food costs is more likely to be influenced by the prices they see on the store shelves. People pay for groceries on a more regular basis than other expenses, with a trip to the supermarket a frequent reminder that food is pricier than it used to be, said David Ortega, a professor and food economist at Michigan State University.

    “We come into contact with food prices much more than we do other prices in the economy,” he told CBS News.

    The rise in food prices in Tuesday’s CPI reading is being driven by certain food categories like beef and coffee, which have hit record highs, according to Ortega. CBS News’ price tracker shows that overall food prices have jumped nearly 19% since January 2022. 

    Just a few of the staple items that have gotten more expensive, according to data from the Federal Reserve Bank of St. Louis:

    • Ground coffee cost $9.05 per pound in December 2025 (up from $6.78 December 2024)
    • Boneless sirloin steak cost $14.03 per pound in December 2025 (up from $11.67 in December 2024)
    • Romaine lettuce cost $3.47 per pound in December 2025 (up from $3.03 in December 2024)
    • A 12-ounce can of orange juice frozen concentrate cost $4.82 in December 2025 (up from $4.29 in December 2024)
    • Bananas cost 66 cents per pound in December 2025 (up from 62 cents per pound in December 2024)

    Multiple factors explain the rise in food costs, ranging from constrained beef supplies to tariffs and bad weather for coffee.

    President Trump cut tariffs on certain foods in November in an effort to rein in prices, although experts say any price relief won’t be immediate.

    One boost for shoppers: eggs. The price of a carton of eggs has soared in recent years because of the ongoing outbreak of avian flu, but has since cooled, dropping nearly 21% on an annual basis in December. A dozen eggs cost shoppers $2.71 in December 2025, down sharply from $6.23 in March of last year when prices peaked, CBS News’ price tracker shows.

    Higher restaurant tabs

    It’s not just grocery runs that are denting Americans’ budgets. Dining out is also getting costlier. The Labor Department’s measure for this, known as “food away from home,” in December rose at an annual rate of 4.1%, compared with 2.7% for inflation overall. 

    Joe Hannon, general manager of inventory and purchasing at Restaurant365, a cloud-based management platform for restaurants, attributes the higher prices to rising labor and utilities costs.

    “Operators aren’t raising menu prices because of a single spike, but because multiple costs are staying higher at the same time, squeezing margins that were already thin,” he told CBS News in an email. “That’s why menu prices have continued to rise faster than overall inflation, even as some headline numbers begin to cool.”

    Ortega agreed, adding that an increase in the number of people dining out since the COVID-19 pandemic is also putting upward pressure on menu prices.

    “When you have increased costs and then strong consumer demand, that’s a recipe for prices to increase,” he said.

    Edited by

    Alain Sherter

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  • Retail sales rose a better-than-expected 0.6% in November

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    NEW YORK — Shoppers increased their spending in November from October as holiday shopping kicked into full gear.

    Retail sales rose a better-than-expected 0.6% in November, following a revised 0.1% decline October, according to the Commerce Department. The report was delayed more than a month because of the 43-day government shutdown.

    Retail sales rose 0.1% increase in September, but jumped 0.6% in July and August and 1% in June.

    The federal government is gradually catching up on economic reports that were postponed by the shutdown.

    Sales at clothing and accessories stores rose 0.9%, while online businesses had a 0.4% increase. Business at sporting goods and hobby stores was up 1.9%.

    The snapshot offers only a partial look at consumer spending and doesn’t include many services, including travel and hotel lodges. But the lone services category – restaurants – registered an uptick of 0.6%.

    The report comes as 41,000 attendees from retailers, brands and technology companies gathered for the annual three-day National Retail Federation convention. With shoppers growing anxious about high prices and impact of President Donald Trump’s tariffs, as well as a souring job market, the outlook for shopping for this year was a key issue that dominated discussions.

    The industry wrapped up a solid holiday shopping season, based on early data, but many consumers, particularly from the lower income households, remain financially strained.

    Hiring has generally been weak, which could hurt consumer spending and the broader economy for 2026.

    Inflation cooled a bit last month as prices for gas and used cars fell, a sign that stubbornly elevated cost pressures are slowly easing, according to a report from the Labor Department Tuesday.

    Consumer prices rose 0.3% in December from the prior month, the same as in November. Excluding the volatile food and energy categories, core prices rose 0.2%, also matching November’s figure. Increases at that pace, over time, would bring inflation closer to the Federal Reserve’s target of 2%.

    Many economists had predicted inflation to jump last month as the government resumed normal data collection after the six-week shutdown last fall, so the modest increases that matched the November figures came as a relief. The price of manufactured goods was flat in December, a sign that the impact of tariffs may be starting to fade.

    The National Retail Federation is predicting retail sales in November and December grew between 3.7% and 4.2% over 2024. That translates to total spending between $1.01 trillion and $1.02 trillion. By comparison, holiday sales for 2024 rose 4.3% over 2023 to reach $976.1 billion.

    The trade group will not be coming out with official sales results for the November and December period until next month when the government reports December retail figures.

    Lululemon Athletica said on Monday that it anticipates fourth-quarter profit and revenue to come in at the high end of its previously released outlook, helped by a solid holiday shopping season. And Abercrombie & Fitch Co. said on Monday that both its Hollister and Abercrombie fared well during the holiday season.

    A better picture of holiday spending will come next month when Walmart, Target and other major retailers report results.

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  • Producer prices rise a mild 0.2% in November, government says in report delayed by federal shutdown

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    WASHINGTON — U.S. wholesale prices rose modestly in November, the government said in report delayed by the federal government shutdown.

    The Labor Department reported Wednesday that its producer price index — which measures inflation before it reaches consumers — rose 0.2% in November from October and 3% from a year earlier.

    The numbers are old. They were supposed to come out Dec. 11, but the report was delayed by last fall’s 43-day government shutdown. The Labor Department will put out December’s producer price index on Jan. 30; it was originally scheduled to come out Wednesday.

    Gasoline prices rose sharply in November. Excluding volatile food and energy prices, so-called core wholesale prices were unchanged from October and up 3% from November 2024.

    President Donald Trump’s sweeping taxes on imports were expected to drive inflation sharply higher, but their impact so far has been more modest than expected.

    The Labor Department reported Tuesday that consumer price inflation cooled last month, rising a modest 0.3% from November and 2.7% from December 2024. But it remains above the Federal Reserve’s 2% target.

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  • CPI report shows inflation rose at a 2.7% annual pace in December, in line with forecasts

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    The Consumer Price Index rose at an annual rate of 2.7% in the final month of 2025, in line with economists’ forecasts, capping a year when many Americans felt squeezed by price pressures.

    By the numbers

    The CPI was expected to rise 2.6% on an annual basis last month, according to economists surveyed by financial data firm FactSet.

    The CPI tracks the changes in a basket of goods and services typically bought by consumers, such as food and apparel.

    The latest CPI reading closes out a year marked by economic resilience alongside lingering price pressures. Inflation stayed at or below 3% throughout 2025, well below the pandemic peak of 9.1% in June 2022.

    Even so, the CPI climbed for several months in 2025 in the wake of the Trump administration’s tariff announcements, although the levies didn’t reignite inflation to the extent that some economists had predicted. The tariff impact was more muted on inflation than predicted because many retailers swallowed some tariff costs rather than passing them on directly to customers. 

    However, cooling inflation did not translate into price relief. Prices continued to rise, leaving many households feeling pinched and complicating efforts to save for retirement or buy a home.

    “Inflation remains a challenge, with core PCE inflation holding above the Federal Reserve’s 2% target for 55 months,” noted Seema Shah, chief global strategist at investment firm Principal Asset Management, in a Tuesday email. 

    The Federal Reserve cut rates three times in the final months of 2025 to counter a cooling labor market, despite inflation remaining above the central bank’s 2% target. Fed Chair Jerome Powell said labor-market headwinds outweighed the risk of renewed price pressures. The next Fed meeting is scheduled for Jan. 27 to 28.

    Edited by

    Aimee Picchi

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  • Consumer prices likely stayed elevated in December as data recovers from shutdown

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    WASHINGTON — Inflation likely remained elevated last month as the cost of electricity, groceries, and clothing may have jumped and continued to pressure consumers’ wallets.

    The Labor Department is expected to report that consumer prices rose 2.6% in December compared with a year earlier, according to economists’ estimates compiled by data provider FactSet. The yearly rate would be down from 2.7% in November. Monthly prices, however, are expected to rise 0.3% in December, faster than is consistent with the Federal Reserve’s 2% inflation goal.

    The figures are harder to predict this month, however, because the six-week government shutdown last fall suspended the collection of price data used to compile the inflation rate. Some economists expect the December figures will show a bigger jump in inflation as the data collection process gets back to normal.

    Core prices, which exclude the volatile food and energy categories, are also expected to rise 0.3% in December from the previous month, and 2.7% from a year earlier. The yearly core figure would be an increase from 2.6% in November.

    In November, annual inflation fell from 3% in September to 2.7%, in part because of quirks in November’s data. (The government never calculated a yearly figure for October). Most prices were collected in the second half of November, after the government reopened, when holiday discounts kicked in, which may have biased November inflation lower.

    And since rental prices weren’t fully collected in October, the agency that prepares the inflation reports used placeholder estimates that may have biased prices lower, economists said.

    Inflation has come down significantly from the four-decade peak of 9.1% that it reached in June 2022, but it has been stubbornly close to 3% since late 2023. The cost of necessities such as groceries is about 25% higher than it was before the pandemic, and other necessities such as rent and clothing have also gotten more expensive, fueling dissatisfaction with the economy that both President Donald Trump and former President Joe Biden have sought to address, though with limited success.

    The Federal Reserve has struggled to balance its goal of fighting inflation by keeping borrowing costs high, while also supporting hiring by cutting interest rates when unemployment worsens. As long as inflation remains above its target of 2%, the Fed will likely be reluctant to cut rates much more.

    The Fed reduced its key rate by a quarter-point in December, but Chair Jerome Powell, at a press conference explaining its decision, said the Fed would probably hold off on further cuts to see how the economy evolves.

    The 19 members of the Fed’s interest-rate setting committee have been sharply divided for months over whether to cut its rate further, or keep it at its curent level of about 3.6% to combat inflation.

    Trump, meanwhile, has harshly criticized the Fed for not cutting its key short-term rate more sharply, a move he has said would reduce mortgage rates and the government’s borrowing costs for its huge debt pile. Yet the Fed doesn’t directly control mortgage rates, which are set by financial markets.

    In a move that cast a shadow over the ability of the Fed to fight inflation in the future, the Department of Justice served the central bank last Friday with subpoenas related to Powell’s congressional testimony in June about a $2.5 billion renovation of two Fed office buildings. Trump administration officials have suggested that Powell either lied about changes to the building or altered plans in ways that are inconsistent with those approved by planning commissions.

    In a blunt response, Powell said Sunday those claims were “pretexts” for an effort by the White House to assert more control over the Fed.

    “The threat of criminal charges is a consequence of the Federal Reserve setting interest rates based on our best assessment of what will serve the public, rather than following the preferences of the President,” Powell said. “This is about whether the Fed will be able to continue to set interest rates based on evidence and economic conditions—or whether instead monetary policy will be directed by political pressure or intimidation.”

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  • Commentary: Trump can be hard to take. But his tariffs keep this fisherman afloat

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    HOUMA, La. — For nearly 50 years, James Blanchard has made his living in the Gulf of Mexico, pulling shrimp from the sea.

    It’s all he ever wanted to do, since he was around 12 years old and accompanied his father, a mailman and part-time shrimper, as he spent weekends trawling the marshy waters off Louisiana. Blanchard loved the adventure and splendid isolation.

    He made a good living, even as the industry collapsed around him. He and his wife, Cheri, bought a comfortable home in a tidy subdivision here in the heart of Bayou Country. They helped put three kids through college.

    But eventually Blanchard began to contemplate his forced retirement, selling his 63-foot boat and hanging up his wall of big green fishing nets once he turns 65 in February.

    “The amount of shrimp was not a problem,” said Blanchard, a fourth-generation shrimper who routinely hauls in north of 30,000 flash-frozen pounds on a two-week trip. “It’s making a profit, because the prices were so low.”

    Then came President Trump, his tariffs and famously itchy trigger finger.

    Blanchard is a lifelong Republican, but wasn’t initially a big Trump fan.

    In April, Trump slapped a 10% fee on shrimp imports, which grew to 50% for India, America’s largest overseas source of shrimp. Further levies were imposed on Ecuador, Vietnam and Indonesia, which are other major U.S. suppliers.

    logo reading "Trump's America" with red hat in center

    Views of the 47th president, from the ground up

    Tariffs may slow economic growth, discombobulate markets and boost inflation. Trump’s single-handed approach to tax-and-trade policy has landed him before the Supreme Court, which is expected to rule by summer on a major test case of presidential power.

    A hand holding a bag of dried shrimp.

    Blanchard snacks on a bag of dried shrimp.

    But for Blanchard, those tariffs have been a lifeline. He’s seen a significant uptick in prices, from as low as 87 cents a pound for wild-caught shrimp to $1.50 or more. That’s nowhere near the $4.50 a pound, adjusted for inflation, that U.S shrimpers earned back in the roaring 1980s, when shrimp was less common in home kitchens and something of a luxury item.

    It’s enough, however, for Blanchard to shelve his retirement plans and for that — and Trump — he’s appreciative.

    “Writing all the bills in the world is great,” he said of efforts by congressional lawmakers to prop up the country’s dwindling shrimp fishermen. “But it don’t get nothing done.”

    Trump, Blanchard said, has delivered.

    ::

    Shrimp is America’s most popular seafood, but that hasn’t buoyed the U.S. shrimp industry.

    Wild-caught domestic shrimp make up less than 10% of the market. It’s not a matter of quality, or overfishing. A flood of imports — farmed on a mass scale, lightly regulated by developing countries and thus cheaper to produce — has decimated the market for American shrimpers.

    In the Gulf and South Atlantic, warm water shrimp landings — the term the industry uses — had an average annual value of more than $460 million between 1975 and 2022, according to the Southern Shrimp Alliance, a trade group. (Those numbers are not adjusted for inflation.)

    A boat moves up a canal in Chauvin, La.

    A boat moves up a canal in Chauvin, La.

    Over the last two years, the value of the commercial shrimp fishery has fallen to $269 million in 2023 and $256 million in 2024.

    As the country’s leading shrimp producer, Louisiana has been particularly hard hit. “It’s getting to the point that we are on our knees,” Acy Cooper, president of the Louisiana Shrimp Assn., recently told New Orleans television station WVUE.

    In the 1980s, there were more than 6,000 licensed shrimpers working in Louisiana. Today, there are fewer than 1,500.

    Blanchard can see the ripple effects in Houma — in the shuttered businesses, the depleted job market and the high incidence of drug overdoses.

    Latrevien Moultrie, 14, fishes in Houma, La.

    Latrevien Moultrie, 14, fishes in Houma, La.

    “It’s affected everybody,” he said. “It’s not only the boats, the infrastructure, the packing plants. It’s the hardware stores. The fuel docks. The grocery stores.”

    Two of the Blanchards’ three children have moved away, seeking opportunity elsewhere. One daughter is a university law professor. Their son works in logistics for a trucking company in Georgia. Their other daughter, who lives near the couple, applies her advanced degree in school psychology as a stay-at-home mother of five.

    (Cheri Blanchard, 64 and retired from the state labor department, keeps the books for her husband.)

    It turns out the federal government is at least partly responsible for the shrinking of the domestic shrimp industry. In recent years, U.S. taxpayers have subsidized overseas shrimp farming to the tune of at least $195 million in development aid.

    Seated at their dining room table, near a Christmas tree and other remnants of the holidays, Blanchard read from a set of scribbled notes — a Bible close at hand — as he and his wife decried the lax safety standards, labor abuses and environmental degradation associated with overseas shrimp farming.

    James Blanchard and his wife, Cheri, like Trump's policies. His personality is another thing.

    James Blanchard and his wife, Cheri, like Trump’s policies. His personality is another thing.

    The fact their taxes help support those practices is particularly galling.

    “A slap in the face,” Blanchard called it.

    ::

    Donald Trump grew slowly on the Blanchards.

    The two are lifelong Republicans, but they voted for Trump in 2016 only because they considered him less bad than Hillary Clinton.

    Once he took office, they were pleasantly surprised.

    They had more money in their pockets. Inflation wasn’t an issue. Washington seemed less heavy-handed and intrusive. By the time Trump ran for reelection, the couple were fully on board and they happily voted for him again in 2024.

    Republican National Committee reading material sits on the counter of James Blanchard's kitchen.

    Republican National Committee reading material sits on the counter of James Blanchard’s kitchen.

    Still, there are things that irk Blanchard. He doesn’t much care for Trump’s brash persona and can’t stand all the childish name-calling. For a long time, he couldn’t bear listening to Trump’s speeches.

    “You didn’t ever really listen to many of Obama’s speeches,” Cheri interjected, and James allowed as how that was true.

    “I liked his personality,” Blanchard said of the former Democratic president. “I liked his character. But I didn’t like his policies.”

    It’s the opposite with Trump.

    Unlike most politicians, Blanchard said, when Trump says he’ll do something he generally follows through.

    Such as tightening border security.

    “I have no issue at all with immigrants,” he said, as his wife nodded alongside. “I have an issue with illegal immigrants.” (She echoed Trump in blaming Renee Good for her death last week at the hands of an ICE agent.)

    “I have sympathy for them as families,” Blanchard went on, but crossing the border doesn’t make someone a U.S. citizen. “If I go down the highway 70 miles an hour in that 30-mile-an-hour zone, guess what? I’m getting a ticket. … Or if I get in that car and I’m drinking, guess what? They’re bringing me to jail. So what’s the difference?”

    Between the two there isn’t much — apart from Trump’s “trolling,” as Cheri called it — they find fault with.

    Blanchard hailed the lightning-strike capture and arrest of Venezuelan President Nicolás Maduro as another example of Trump doing and meaning exactly what he says.

    “When Biden was in office, they had a $25-million bounty on [Maduro’s] head,” Blanchard said. “But apparently it was done knowing that it was never going to be enforced.”

    More empty talk, he suggested.

    Just like all those years of unfulfilled promises from politicians vowing to rein in foreign competition and revive America’s suffering shrimping industry.

    James Blanchard aboard his boat, which he docks in Bayou Little Caillou.

    James Blanchard aboard his boat, which he docks in Bayou Little Caillou.

    Trump and his tariffs have given Blanchard back his livelihood and for that alone he’s grateful.

    There’s maintenance and repair work to be done on his boat — named Waymaker, to honor the Lord — before Blanchard musters his two-man crew and sets out from Bayou Little Caillou.

    He can hardly wait.

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  • India economy estimated to grow 7.4% in 2026 despite looming trade uncertainties

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    India is set to become the world’s fourth-largest economy.

    Dinodia Photo | Corbis Documentary | Getty Images

    Amid rising global trade uncertainties, India’s economy is projected to grow 7.4% in the fiscal year ending March 2026, higher than 6.5% in the last fiscal year, according to first advance estimates released by the Indian government on Wednesday.

    In 2025, the advance estimates offered the first official sign of a slowdown in the world’s fastest-growing economy, pegging India’s growth at 6.4%, the weakest since the pandemic. This figure was later revised to 6.5% in May.

    Private consumption is expected to expand by 7%, down slightly from the previous year’s growth of 7.2%. Meanwhile, government spending is projected to rise 5.2%, up from a 2.3% increase in the previous year.

    Indian exports to the U.S., its biggest trading partner, have been subject to 50% tariffs since August last year. While negotiations toward a trade agreement are ongoing, the prolonged tariffs are expected to weigh on economic momentum.

    Last month, the International Monetary Fund said India’s real GDP is projected to grow 6.6% in fiscal 2026 before moderating to 6.2% in fiscal 2027, assuming a prolonged delay in a U.S.-India trade deal.

    Despite these risks, the Indian economy has been surprisingly resilient in the first half of fiscal 2026, growing faster than expected at 7.8% in the June quarter and 8.2% in the three months ending September.

    India’s central bank last month revised the real GDP growth for fiscal 2026 to 7.3% from the earlier estimate of 6.8%, citing easing price pressures.

    The Reserve Bank of India has lowered its consumer price inflation forecast to 2.0%, from 2.6% for this fiscal year. That gave the central bank room to cut its policy rate by 25 basis points to 5.25%, even as it flagged weakness in some key economic indicators.

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  • Euro zone inflation hits 2% in December, in line with forecasts

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    Downtown Amsterdam

    Jacobh | E+ | Getty Images

    Euro zone inflation stood at 2% in December, flash data from Eurostat showed on Wednesday.

    Economists polled by Reuters had expected the inflation rate to cool to 2%, in line with the European Central Bank’s (ECB) target. In November, the inflation rate stood at 2.1%.

    Core inflation, which excludes more volatile energy, food, alcohol and tobacco prices, stood at 2.3% in the year to December, down from 2.4% in November, while the annual rate of services inflation cooled to 3.4%, compared with 3.5% in November.

    The ECB held its key deposit facility rate at 2% for the fourth consecutive time in December, having last cut rates in June.

    The trim, which coincided with euro zone inflation hitting 2%, was part of a rate-cutting cycle that has brought rates down from 2024’s record high of 4%.

    Top ECB board members told CNBC late last year that the easing cycle is close to, or at its end, although the central bank has repeatedly said it will take a meeting-by-meeting and data dependent approach to rate setting.

    The euro and Stoxx 600 were unchanged on Wednesday following the data release, although the inflation rate returning to the ECB’s target could signal further rate cuts ahead.

    “The move should please equity markets, as it gives the ECB yet another reason to cut interest rates further in 2026. That said, inflation has been hovering either side of the 2% level for most of last year, so today’s move is minor, but a positive, nonetheless,” Michael Field, chief equity strategist at Morningstar, said in emailed comments Wednesday. 

    “Central bankers walk a tightrope, attempting to stimulate the economy without igniting inflation. But with inflation low and steady, they should be able to take their foot off the brake and lean towards more stimulus sooner rather than later.”

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  • 3 Big Changes for Retirement Planning this year

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    For retirement savers and retirees, the new year brings more than the usual inflation adjustments to retirement contributions. The retirement legislation known as Secure 2.0 will also continue to phase in, and the One Big Beautiful Bill Act will have impacts too.

    Here’s a roundup of three key changes and some moves to consider.

    Thanks to a provision in the Secure 2.0 retirement legislation, high-income earners (with $150,000 or more in FICA income in the prior year) who are over 50 and investing in 401(k) or other company retirement plans must make catch-up contributions to their plans’ Roth option, rather than traditional tax-deferred contributions, starting this year.

    For 2026, 401(k) investors under 50 can contribute $24,500 to their company plans, plus $8,000 in catch-up contributions if they’re over 50, for a total of $32,500. In addition, people age 60 to 63 can make “super-catch-up” contributions: $11,250 on top of $24,500.

    Potential Action Items:Some 401(k) plans may not have a Roth option, so those participants should instead consider making a full IRA contribution in addition to their baseline 401(k) contributions ($24,500).This year, the IRA contribution limit is $8,600 for people over 50and $7,500 for those under 50. If you can invest even more than that, steer the overage to a taxable brokerage account.

    A separate issue is how 401(k) investors should proceed if their goal is to make traditional tax-deferred contributions rather than Roth. Secure 2.0 forces higher-income older workers into Roth, at least with the catch-up portion of their contributions. In that case, workers can contribute the base 401(k) limit ($24,500) to the traditional tax-deferred option, with catch-up contributions directed to the Roth option.

    Thanks to OBBBA, taxpayers can now deduct a higher amount of state and local taxes. The SALT deduction cap was increased from $10,000 to $40,000 starting in 2025. It will revert to $10,000 in 2030.

    Potential Action Items:How is this related to retirement? The amount of SALT that’s deductible phases out for higher-income taxpayers—those with modified adjusted gross incomes over $500,000. High-income earners should consider ways to come in under $500,000 if they’re close. They might favor contributions to traditional tax-deferred retirement plans rather than Roth or max out their health savings accounts. Qualifying for the higher SALT tax deduction might also argue against strategies that increase income, such as converting traditional IRAs to Roth.

    Of course, don’tmiss the forest for the trees. Strategies like making Roth contributions or converting IRAs might make sense long-term, even if they curtail the deductibility of SALT.

    Through 2028, people 65and up can take advantage of a new $6,000 deduction. It’savailable whether you itemize or not and doubles to $12,000 for married couples filing jointly, assuming both are 65. For non-itemizers, the new deduction would stack on top of standard deductions.

    Here’s how the deductions look this year:

      1. Single filers (standard deduction): $16,100

      2. Single filers over 65: $16,100+ $2,050 + $6,000 = $24,150

      3. Married couples filing jointly (standard deduction): $32,200

      4. Married couples over 65 filing jointly: $32,200 + $1,650×2 + $6,000×2 = $47,500

    Higher-income seniors, take note: Income limits apply. The deduction is reduced for single filers with modified adjusted gross incomes over $75,000 and married couples filing jointly with MAGI over $150,000.It goes away entirely for singles with MAGI over $175,000 and married couples filing jointly with MAGI of $250,000 or more.

    Potential Action Items: Early retirees who have a lot of control over their taxable income levels because they’re not yet receiving Social Security or subject to required minimum distributions may be tempted to try to keep MAGI down to qualify for the full deduction. But it’s wise to balance those aims alongside other worthwhile tactics, such as converting traditional IRA balances to Roth.

    ____

    This article was provided to The Associated Press by Morningstar. For more retirement content, go to https://www.morningstar.com/retirement.

    ChristineBenz is director of personal finance and retirement planning for Morningstar.

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  • Trump says if Iran

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    President Trump warned Friday in a social media post that if Iran “violently kills peaceful protesters, which is their custom, the United States of America will come to their rescue.”

    Mr. Trump offer no further comment on Iran or how the U.S. might intervene to protect protesters in the country in the post on his Truth Social network, which was published just before 3 a.m. Eastern, but he said: “We are locked and loaded and ready to go.”

    It came hours after reports that at least six people have been killed amid nearly a week of escalating protests in Iran. The unrest began last weekend as business owners voiced frustration at the dire economic conditions in the Islamic Republic. 

    Iran has been plagued for years by staggering hyperinflation, fueled by Western sanctions imposed over the hardline clerical government’s nuclear program and backing for militant groups across the region.

    Videos and photos from Tehran and other cities posted on social media have shown protesters marching through streets from early this week, often chanting anti-government, pro-monarchy slogans and sometimes clashing violently with security forces.



    Protests erupt across Iran as currency sinks to record low

    04:11

    In an apparent bid to quell the unrest, Iranian authorities have acknowledged the economic concerns and said peaceful protests are legitimate, but suggested that foreign powers — usually a reference to Israel and the U.S. — are behind subversive elements fueling violence on the streets.

    Both the U.S. and Israeli governments had issued statements in support of the protests prior to Mr. Trump’s warning of a possible, undefined U.S. intervention on Friday morning.  

    “The people of Iran want freedom. They have suffered at the hands of the Ayatollahs for too long,” Mike Waltz, U.S. Ambassador to the United Nations, said in a post on X earlier this week. “We stand with Iranians in the streets of Tehran and across the country as they protest a radical regime that has brought them nothing but economic downturn and war.”

    Tension between the U.S. and Iran escalated this week on the heels of a visit to the U.S. by Israeli Prime Minister Benjamin Netanyahu, who has campaigned his country’s close allies in Washington for decades to take a tougher stance on Iran.

    After meeting with Netanyahu at his Mar-a-Lago resort in Florida on Sunday, Mr. Trump said he had heard that Iran could be attempting to rebuild its nuclear program following the unprecedented U.S. strikes on its enrichment facilities in June. Mr. Trump warned that if Iran did try to rebuild, “we’ll knock them down. We’ll knock the hell out of them. But hopefully that’s not happening.”

    On Tuesday, Iranian President Mahsoud Pezeshkian said Tehran would respond “to any cruel aggression” with unspecified “harsh and discouraging” measures.

    Iran is no stranger to nationwide protests, and the latest demonstrations have not come close to the last major outbreak in 2022, which was triggered by the death in police custody of Mahsa Amini, a young Iranian woman.

    An image from video posted on social media, which CBS News has not independently verified, appears to show a fire burning on a street in Tehran, Iran, amid clashes between protesters and government security forces in late December 2025 or early January 2026.

    Her death in custody after being arrested for allegedly violating the nation’s strict dress code for women sparked a wave of anger across the nation. Several hundred people were killed, including dozens of members of the security forces, who waged a dramatic crackdown in response, arresting hundreds of people.

    There were also widespread protests in 2019, sparked by a sharp increase in the price of petrol.

    The standoff between Iran and the U.S. over the Islamic Republic’s nuclear program reached a crescendo in June, when Mr. Trump ordered the deadly military strikes against Iran’s enrichment facilities, as Israel also carried out strikes on the country.

    While Mr. Trump indicated earlier this week that the U.S. could take new action if Iran were to rebuild its nuclear program, Friday’s brief post on social media was the first suggestion of a possible American intervention on behalf of Iranian protesters. 

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  • Bulgaria to become the 21st country to join the euro, deepening EU ties despite fears

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    SOFIA, Bulgaria — On New Year’s Day, Bulgaria becomes the 21st country to join the euro currency union, furthering its integration into the European Union. But the historic milestone arrives amid political instability and skepticism among ordinary people fueled by fears of price rises.

    Supporters of switching to the euro from the old currency, the lev, are praising the move as one of the greatest achievements since the 1989 transition from a Soviet-style economy to democracy and free markets. They hope it will make the country more attractive for investors and strengthen its orientation toward wealthier Western Europe.

    But many people are uneasy, in a country where corruption is rife and trust in the authorities is low. One fear is that merchants will round prices up or otherwise use the changeover to worsen inflation, at a time when inflation has rebounded to 3.7%.

    An EU Eurobarometer poll from March showed that 53% of 1,017 people surveyed opposed joining the eurozone, while 45% were in favor. A separate Eurobarometer poll, taken between Oct. 9 and Nov. 3 on a similar sample, showed that about half of Bulgarians opposed the single currency while 42% were in favor. The margin of error was about plus or minus 3.1 percentage points for the March poll.

    The government successfully completed the euro adoption process by beating inflation down to 2.7% earlier this year to comply with EU rules and win approval from EU leaders. But clearing that hurdle was followed by a new chapter of political chaos. The government resigned after less than a year in office amid nationwide anti-corruption protests. This left the country without a regular budget for next year and is hampering plans for long-overdue structural reforms and decisions on use of EU support funds. A new election — the eighth in five years — is expected to be held next spring.

    Nevelin Petrov, 64, said he welcomed the euro. “Bulgaria is a full member of the European Union, and its rightful place is alongside the other developed and democratic European nations,” he said. “I am convinced that the adoption of the euro will contribute to the long-term prosperity of our country,” he said.

    Others, like Darina Vitova, who runs a pedicure salon in Sofia, said things were moving too fast although she welcomed the change “in principle.”

    “The standard of living and incomes in our country are far from those in the richest European countries, while prices here are rising and life for the average person will become more difficult,” she said. She acknowledges that when heading to the beaches in neighboring Greece, it will be more convenient to pay with the same “pocket money” she uses at home.

    Bulgaria, with its 6.4 million people, is one of the poorest members of the 27-country European union. The average monthly wage is 1,300 euros ($1,530).

    Countries that join the EU commit to the euro, but actually joining can take years and some members are in no hurry. Poland in particular has seen strong economic growth since joining the EU in 2004 without adopting the euro.

    Opponents of joining have fed fears that the changes will allegedly lead to more poverty and loss of national identity. Social media has spread disinformation such as false claims that the euro could lead to confiscation of bank accounts. Nationalist and pro-Russian groups exploit these fears.

    European Central Bank President Christine Lagarde has said that countries have experienced a slight, transient rise in prices of 0.2%-0.4% right after joining. Price rises can be more apparent than real, as cafe and hairdressers may put off printing new menus and price lists ahead of the change, so that increases are only delayed, not caused by the euro.

    Anti-euro rallies in May and September were organized by the pro-Russian Vazrazhdane party but remained smaller than the mass protests that toppled the government. While the anti-euro protests were supported by older people based on economic anxiety, the mass protests that toppled the government appeared to represent a younger electorate fed up with corruption and eager to integrate with Europe.

    Anti-euro disinformation spread by pro-Russian politicians and social media aim “to reduce support for the European Union, NATO and Ukraine,” said Dimitar Keranov, program coordinator for engaging Central Europe at the German Marshall Fund in Berlin.

    Bulgaria’s European integration “is not in Moscow’s interest at all, so if it can somehow polarize society and weaken support for the European Union that’s what it tries to achieve,” he said.

    Euro adoption is another way to combat Russian influence, he said: “The further Bulgaria advances in its European integration, the harder it becomes for Russia to influence the country.”

    Petar Ganev, an analyst at the Sofia-based Institute for Market Economics, says that that by stepping down the outgoing government has sent a signal of uncertainty to foreign investors.

    “Instead of capitalizing on euro adoption as a strong and positive signal to the international community—investors, debt holders, and those investing in Bulgarian assets and economic activity—we risk sending the opposite message,” Ganev said in an interview with the Associated Press.

    Ganev believes that eurozone membership should be regarded as an opportunity, an additional mechanism to address corruption and the rule of law, although it alone cannot resolve Bulgaria’s chronic cycle of elections and political fragmentation and instability.

    Local economists think that joining the euro will not bring dramatic changes to Bulgaria’s economy. That is because the lev has been pegged since 1999 to the euro by law, at a fixed rate of 1 lev for every 51 euro cents.

    The lev and the euro will be in dual use for cash payments for the whole month of January, but people will receive only euros in change.

    ___

    McHugh reported from Frankfurt, Germany. Valentina Petrova in Sofia contributed to this report

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  • Iran appoints new central bank governor after record currency fall and mass protests

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    TEHRAN, Iran — Iran on Wednesday appointed a new governor to the central bank after the former one resigned following a record currency fall against the U.S. dollar that sparked large protests.

    The plummeting of the rial, Iran’s currency, sparked the largest protests in the country in three years, with rallies that began Sunday and continued until Tuesday.

    A report by the official IRNA news agency said President Masoud Pezeshkian’s Cabinet appointed Abdolnasser Hemmati, a former economics minister, as new governor of the Central Bank of the Islamic Republic of Iran. He replaces Mohammad Reza Farzin, who resigned on Monday.

    Experts say a 40% inflation rate led to public discontent. The U.S. dollar traded at 1.38 million rials on Wednesday, compared to 430,000 when Farzin took office in 2022. Many traders and shopkeepers closed their businesses and took to the streets of Tehran and other cities to protest.

    The new governor’s agenda will included a focus on controlling inflation and strengthening the currency, as well as addressing the mismanagement of banks, the government’s spokeswoman Fatemeh Mohajerani wrote on X.

    Hemmati, 68, previously served as minister of economic and financial affairs under Pezeshkian. In March parliament dismissed Hemmati for alleged mismanagement and accusations his policies hurt the strength of Iran’s rial against hard currencies.

    A combination of the currency’s rapid depreciation and inflationary pressure has pushed up the prices of food and other daily necessities, adding to strain on household budgets already under pressure due to Western sanctions on Iran over its nuclear program.

    Inflation is expected to worsen with a gasoline price change introduced in recent weeks.

    Iran’s currency was trading at 32,000 rials to the dollar at the time of the 2015 nuclear accord that lifted international sanctions in exchange for tight controls on Iran’s nuclear program. That deal unraveled after President Donald Trump unilaterally withdrew the United States from it in 2018, during his first term.

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  • Asian shares trade mixed with some exchanges closed ahead of the New Year

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    TOKYO — Major Asian stock markets, including Tokyo and Seoul, were closed Wednesday for the yearend and New Year’s holidays, while trading was mixed in those bourses that remained open.

    In China, the Hang Seng index dipped 0.9% to 25,630.54, while the Shanghai Composite rose 0.1% to 3,969.75. The Taiex in Taiwan jumped 0.9% to 28,963.60.

    In Australia, Sydney’s S&P/ASX 200 dipped less than 0.1% to 8,714.30.

    Tokyo trading was set to be closed for the New Year’s holidays on Thursday and Friday and scheduled to reopen on Monday. In South Korea, trading was scheduled to be closed on Thursday.

    Trading will remain open Wednesday on Wall Street but will be closed Thursday. Trading volume was thin Tuesday.

    The S&P 500 fell 9.50 points, or 0.1%, to 6,894.24. Even with three straight days of small losses, the S&P 500 is on track for an annual gain of more than 17%.

    The Dow Jones Industrial Average fell 94.87 points, or 0.2%, to 48,367.06. The Nasdaq composite fell 55.27 points, or 0.2%, to 23,419.08.

    The biggest weights on the market remained technology companies, especially those focused on advancements for artificial intelligence.

    Nvidia fell 0.4% and Apple fell 0.2%. Both companies have outsized values that have a greater overall impact on the market’s broader direction.

    On the winning side, Facebook parent Meta Platforms rose 1.1%. The company is buying artificial intelligence startup Manus as it continues an aggressive push to amp up AI offerings across its platforms.

    The more notable action was in the commodities markets. The price of gold rose 1.4% to 4,386.30 per ounce. Silver prices gained 10.9%. Prices for gold and silver slumped Monday when the Chicago Mercantile Exchange, one of the largest trading floors for commodities, asked traders to put up more cash to make bets on precious metals. Prices for both metals have surged in 2025 on a mix of economic worries and supply deficits.

    Copper rose 4.4% and is up more 40% for the year on strong demand. The base metal is critical to global energy infrastructure, and demand is expected to keep growing as the development of artificial intelligence technology puts more of a strain on data centers and the energy grid.

    In energy trading, U.S. crude fell 7 cents to $57.88 per barrel. The price of Brent crude, the international standard, slipped 7 cents to $61.26 per barrel.

    Treasury yields were mixed in the bond market. The yield on the 10-year Treasury rose to 4.12% from 4.11% late Monday. The yield on the two-year Treasury, which moves more closely with expectations for what the Federal Reserve will do, held steady at 3.45% from late Monday.

    Overall, Treasury yields have fallen significantly through the year, partly because of the market’s expectations for a shift in interest rate policy at the Fed. The central bank cut interest rates three times late in 2025, most recently at its meeting earlier in December.

    The central bank has been dealing with a more complex economic picture. Consumer confidence has been weakening throughout the year as inflation squeezes consumers and businesses. The continued impact of a wide-ranging U.S.-led trade war threatens to add more fuel to inflation.

    Inflation remains stubbornly high while the jobs market slows down. The Fed can cut interest rates to help the economy weather a slower jobs market. But that could add more fuel to inflation, which is still solidly above the Fed’s 2% target. Hotter inflation could stunt economic growth.

    The Fed has signaled more caution moving forward. Minutes from its December meeting reflect the divisions within the central bank as it deals with uncertainty about the threats facing the economy.

    Wall Street is betting that the Fed will hold interest rates steady at its next meeting in January.

    In currency trading, the U.S. dollar rose to 156.60 Japanese yen from 156.36 yen. The euro cost $1.1740, little changed from $1.1744.

    ___

    AP Business Writer Damian J. Troise contributed to this report.

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