Business News

US inflation up again in February in latest sign that price pressures remain elevated

WASHINGTON (AP) — Consumer prices in the United States picked up last month, a sign that inflation remains a persistent challenge for the Federal Reserve and for President Joe Biden’s re-election campaign, both of which are counting on a steady easing of price pressures this year. Prices rose 0.4% from January to February, a pickup from the previous month’s figure of 0.3%. Compared with 12 months earlier, consumer prices rose 3.2% last month, faster than January’s 3.1% annual pace. Excluding volatile food and energy prices, so called “core” prices also climbed 0.4% from January to February, matching the previous month’s increase and a faster pace than is consistent with the Fed’s 2% target.

As Putin orchestrates his reelection, a resilient Russian economy is a key selling point

MOSCOW (AP) — Russia’s economy is holding up despite massive Western sanctions and foreign businesses pulling out of the country. While some goods aren’t available, President Vladimir Putin can point to a stable, growing economy as he orchestrates his reelection to a fifth, six-year term this week. Yes, there’s inflation that consumers are feeling as they shop, and some favorite imported goods may be gone or much more expensive. But massive government spending on the military and other moves have been giving the economy a boost. Plus, oil income is still rolling in. For most people in Russia, not much has changed in the economy.

Equal education, unequal pay: Why is there still a gender pay gap in 2024?

CHICAGO (AP) — Not even education can close the pay gap that persists between women and men, according to a recent U.S. Census report. Whether women earn a post-secondary certificate or graduate from a top-tier university, they still make about 71 cents on the dollar compared with men at the same education level, Census research found. That difference is coming into stark view on Equal Pay Day, and in spite of the fact that women comprise more than half of college-educated workers and participate in the labor force at record rates. Uneven child care and household responsibilities, falling college wage premiums, and additional ground to make up in leadership and high paying industries all contribute to the gender wage gap, which has remained fairly steady for two decades.

African Development Bank chief criticizes opaque loans tied to Africa’s natural resources

Lagos, NIGERIA (AP) — The head of the African Development Bank is calling for an end to loans given in exchange for oil or critical minerals used in smartphones and electric car batteries. Such deals have left some African countries in financial crisis and have helped China control the extraction of critical minerals, such as cobalt, in Congo. Akinwumi Adesina said in an interview with The Associated Press that these arrangements come with a litany of problems, pointing to uneven negotiations where lenders typically dictate terms to cash-strapped African nations. He says a lack of transparency and potential for corruption also help create fertile ground for exploitation. At least 11 African countries have taken loans secured with their natural resources since the 2000s.

The IRS launches Direct File, a pilot program for free online tax filing available in 12 states

NEW YORK (AP) — After weeks of testing, an electronic system for filing returns directly to the IRS is now available for taxpayers from 12 selected states. Direct File is a free online tool. Taxpayers in the 12 states who have very simple W-2s and claim a standard deduction may be eligible to use it this tax season. The Direct File pilot is part of the agency’s effort to build out a new government service that could replace some taxpayers’ use of commercial tax preparation software, such as TurboTax.

Most automated driving systems aren’t good making sure drivers pay attention, insurance group says

DETROIT (AP) — Most electronic systems that take on some driving tasks for humans don’t adequately make sure drivers are paying attention, and they don’t issue strong enough warnings to make drivers behave. That’s according a insurance industry study published Tuesday. Only one of 14 partially automated systems tested by the Insurance Institute for Highway Safety performed well enough to get an overall “acceptable” rating. Two others were rated “marginal,” while the rest were labeled “poor.” No system received the top rating of “good.” The institute says it developed the new ratings to get automakers to follow standards including how closely they watch drivers and how fast the cars issue warnings if drivers aren’t paying attention.

Stock market today: Wall Street inches forward ahead of US report on consumer prices

Wall Street was mixed in early trading ahead of a report on inflation in the U.S. that could sway the Federal Reserve’s timing on cutting interest rates. Futures for the S&P 500 gained 0.2% before the bell Tuesday, while futures for the Dow Jones Industrial Average were down less than 0.1% Tuesday’s report on the prices Americans pay is expected by analysts to have held at 3.1% in February. The trend for inflation has been mostly downward, cooling toward the Fed’s 2% target from its peak above 9%. The general expectation among traders is that the Fed will begin cutting rates in June.

Philippines says US will address concerns over garment exports held up on suspicion of forced labor

MANILA, Philippines (AP) — Philippine trade officials say they have received assurances that the United States will address their concerns after American authorities held up shipments of garments on suspicion that cotton was produced by forced labor in China’s Xinjiang region. Philippine Trade Secretary Alfredo Pascual raised the issue in a meeting Monday with U.S. Commerce Secretary Gina Raimondo, who was leading a U.S. business delegation in Manila. An official in Manila says several shipments of apparel to the U.S. by just one Philippines-based company since November had not been released by the U.S. Customs Border Protection due to suspicion cotton produced by Xinjiang’s predominantly Muslim Uyghurs was used in the exported apparels.

Germany launches bidding for carbon contracts to support climate-friendly industrial production

BERLIN (AP) — Germany’s vice chancellor has launched a program initially worth up to 4 billion euros to help heavy industry shift to more climate-friendly production over a 15-year period. Germany, which is home to many energy-intensive industries as Europe’s biggest economy, aims to cut its greenhouse gas emissions to net zero by 2045. The government says Germany is the first in the European Union to launch the so-called “carbon contracts for difference.” Companies have four months to bid for support under the contracts, which are supposed to compensate for the extra costs of climate-friendly production processes where they otherwise would not be competitive. Support will be capped at 1 billion euros per bidder in an effort to accommodate medium-sized companies.

Biden’s budget proposal for a second term offers tax breaks for families and lower health care costs

MANCHESTER, N.H. (AP) — President Joe Biden has issued a budget proposal for a second term aimed at getting voters’ attention with tax breaks for families, lower health care costs, smaller deficits and higher taxes on the wealthy and corporations. The proposal for fiscal 2025 is unlikely to pass the House and Senate and become law. It’s an election year blueprint sketching what the future could hold. If it became law, deficits could be pruned $3 trillion over a decade. Parents could get an increased child tax credit. Corporate taxes would jump upward. Billionaires would be charged a minimum tax of 25%. It also has a $2,000 cap on drug costs. House Speaker Mike Johnson called the proposal a glaring reminder of the administration’s “insatiable appetite for reckless spending.”