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Medicare spending is skyrocketing, but the government just decided that insurers aren't getting a cut of it.Today was a rude awakening for US healthcare providers. The chart above shows the "inevitable" doubling of Medicare spending from 2023 to $1.9 trillion, which is the entire bull thesis for the sector.The Trump administration just flipped the table on the trade.Today's market moves:Humana (HUM): Down ~20%UnitedHealth (UNH): Down ~19%CVS Health (CVS): Down ~12%Analysts had expected a 4-6% rise for Medicare Advantage plans in 2027 but the White House via the CMS raised it by just 0.09%. That's lower than inflation (which is particularly high in healthcare) and effectively means that either services will be cut for people on Medicare or Medicaid or profit margins will fall.Extra benefits will continue to worsen Medicare Advantage plans are popular because they offer "extras" that traditional Medicare doesn't, like dental, vision, gym memberships, and over-the-counter spending cards.The whole US system is a bit of a mess at the moment and it won't get easier due to demographics.By keeping rates flat, the administration is trying to bend that curve. They are effectively saying that the delta between the "historical" line and the "projected" line shouldn't just flow into insurer buybacks. Now the question is what insurers will do. They can simply walk away from low margin lines, or redirect spending to more lobbying.This is a battle that's going to continue for 20 years as boomers age and healthcare spending eats further into the US government budget. Seniors are a huge voting bloc and they will not tolerate a cut in services, so there is no easy path here. Even without the costs of aging, the US is running a massively-problematic deficit with no real plans to fix it. This article was written by Adam Button at investinglive.com.

Prior was 89.1 (revised to 94.2)Details:Present situation 113.7 vs 116.8 prior (revised to 123.0)Expectations 65.1 vs 70.7 prior (revised to 74.7)Jobs plentiful 23.1% vs 26.7% priorJobs hard to get vs 20.8% priorThis is a terrible reading as it breaks through the pandemic lows and falls to the worst levels since 2014. This drop might speak to how the wealthy are carrying US consumer spending while the middle and lower classes are really struggling. We've seen that in reports from airlines and McDonald's among others."Premium product offerings continued to perform exceptionally well, with year-over-year premium unit revenue outperforming the main cabin in the fourth quarter," said American Airlines in its earnings release today.The US dollar is under some further pressure following this report with the euro now up 75 pips on the day to 1.1954. The pound, Aussie and loonie are also at fresh highs on the day while the US Dollar Index hits multi-year lows. Separately, the Richmond Fed manufacturing and services numbers were released at the same time.Manufacturing shipments -5 vs -11 priorServices index -3 vs -6 priorComposite index -6 vs -7 prior This article was written by Adam Button at investinglive.com.

CaseShiller data for the 20-largest metropolitan areas:Prior annual price rise 1.3%Monthly November price +0.5% vs +0.3% priorNon-seasonally adjusted 0.0% vs -0.3%November national numbersAnnually 1.9% vs +1.7% prior (revised to +1.8%)Monthly +0.6% vs +0.4% priorIndex 439.3 vs 436.7 priorIs the US housing market coming to life?It's take awhile for home buyers to realize that the ultra-low pandemic borrowing rates aren't coming back. Even if the Federal Reserve cuts by another 100 bps, the long end isn't going to move much.At some point the renters will have to come off the sidelines and take the 30-year mortgages or shift into adjustable-rate mortgages for the time being. There is always going to be an advantage to owning in terms of certainty and home builders are now trimming their outlooks once again.It's been a miserable few years for the entire sector but it certainly represents an upside risk from here. Trump has floated allowing people to use retirement funds to purchase houses and that could be the jolt that brings the market to life once again. The reports today show there is an appetite to buy and that will be tested as the spring buying seasons begins.Should housing come alive, it would be a further tailwind for commodities, including beaten up ones like steel and lumber. Housing-focused retailers like Home Depot (HD) and Lowe's (LOW) would also benefit along with the broader consumer sector.One risk is that much of the gains in the past few years in equity markets and tax cuts has flowed to the upper-end consumer, which already owns housing. In contrast, higher inflation has hit the would-be home buyer hardest. This article was written by Adam Button at investinglive.com.

Stock Market Premarket Insights and Sector Rotation Deep DiveJanuary 27 Market Open Prep for Investors and TradersThe U.S. equity market is sending a very clear message heading into today’s session. This is not a random stock picking environment. This is a capital rotation market.When investors look at premarket trading volume, relative strength, and sector level flows together, a pattern emerges. Money is not leaving equities altogether. It is moving aggressively from one pocket of the market to another.This article brings together two critical lenses:What we are seeing in premarket price action, volume, and earnings reactionsWhat broader January sector rotation data is telling us about where institutional capital is positioningFor newer investors, this is also an ideal moment to understand how sector rotation works, what ETFs represent, and how to think about timing when a rotation is already underway.Executive Overview: Rotation in Today's Stock Premarket, Not PanicDespite eye catching declines in certain high profile names, the broader market structure remains constructive. The key insight is this:Capital is exiting specific subsectors under regulatory or margin pressure, while flowing into growth oriented and cyclically sensitive areas.Right now, the most dramatic divergence is happening inside healthcare itself:Healthcare providers and hospitals are attracting buyersHealthcare insurers are seeing heavy, forced sellingAt the same time, technology and semiconductors are absorbing liquidity, helping stabilize the broader indices.The Healthcare Split: Providers vs InsurersWhy This MattersMany newer investors think of healthcare as one uniform sector. In reality, it contains multiple business models that respond very differently to policy, rates, and regulation.Managed Care Shock: Insurers Under PressureHealth insurance stocks are experiencing a sharp repricing following regulatory updates tied to Medicare Advantage reimbursement.UnitedHealth Group down roughly 16% premarketCVS Health down over 13%The catalyst is a much lower than expected increase in Medicare Advantage payment rates for 2027. Markets were pricing in something close to mid single digit growth. The reality came in near zero.For insurers, that translates directly into:Margin compressionLower forward earnings visibilityA need to reprice valuation assumptions quicklyThis kind of gap down is often referred to as a falling knife. Even experienced traders usually avoid stepping in too early until selling pressure stabilizes and a base forms.Hospitals Move the Other WayIn sharp contrast, hospital operators are benefitting from earnings strength and relative insulation from this regulatory shock.HCA Healthcare surged close to 8% after reporting strong quarterly resultsHospitals deliver care. Insurers pay for it. When reimbursement pressure hits insurers, it does not necessarily hit providers at the same time or in the same way. That distinction matters.This is a textbook example of intra sector rotation, where money exits one healthcare business model and flows into another.Technology and Semiconductors: Where Liquidity Is ParkingWhile healthcare insurers are absorbing selling pressure, technology is quietly doing its job as a market stabilizer.Semiconductors Lead the Pack in today's premarket stock analysisPremarket volume and price action show strong interest in chipmakers:Intel up over 3% on heavy volumeMicron Technology higher by nearly 4%Nvidia holding firm and supporting sentimentIntel’s move is especially instructive. The stock sold off sharply earlier in the week after issuing soft guidance. Buyers stepping in now are expressing a value driven rebound thesis, not momentum chasing.This is consistent with January sector data showing technology funds and ETFs receiving inflows, even as investors rotate within the sector rather than abandoning it.How This Fits the Bigger Sector Rotation Picture of Today's Stock MarketJanuary rotation data points to two broader trends:Industrials and Financials are heating up, supported by flows and narrative alignmentCrowded growth trades are being selectively trimmed, not abandonedIndustrials benefit when investors expect:Ongoing infrastructure investmentStabilizing economic activityCapex cycles to remain intactFinancials benefit from:Rate sensitivitySteeper yield expectationsRotation toward value and cyclicalityTechnology, particularly semiconductors, often sits at the intersection of growth and cyclicality. That makes it a natural destination when money exits defensives or regulated names but stays within equities.Educational Corner: What Is Sector Rotation?Sector rotation describes the process by which investors move capital between different areas of the market based on:Economic expectationsEarnings visibilityInterest rate outlookRegulatory changesValuation extremesThis rotation often happens before it becomes obvious in headlines.A Quick Word on ETFsAn ETF, or Exchange Traded Fund, is a basket of stocks that trades like a single share. For example:A healthcare ETF holds insurers, hospitals, biotech, and pharmaA semiconductor ETF holds multiple chipmakersWhen investors buy or sell ETFs, they are moving capital across entire sectors at once, not just individual stocks. That is why ETF flows are such a powerful signal for rotation analysis.Is It Too Late to Enter When Rotation Is Visible?This is one of the most common questions investors ask.The answer is nuanced:Early rotation favors institutional positioning and relative valueMid rotation often offers the best risk reward for swing tradersLate rotation is where momentum chasers usually get hurtRight now, many of these moves appear to be in the early to mid phase, especially in:Hospital operatorsSemiconductorsIndustrials and select financialsHowever, individual stock entries still matter. Chasing extended gaps higher without a pullback increases risk, even in strong sectors.What to Watch During the SessionKey things investors and traders should monitor today:Does selling pressure in insurers stabilize or accelerate?Do hospitals hold gains after the open?Does semiconductor strength broaden or fade?Are industrial and financial ETFs seeing follow through volume?Rotation only remains healthy if leadership holds and broad participation expands.Bottom Line for the Stock Market TodayThis market is not about being bullish or bearish on everything.It is about being selective.Capital is clearly rotating:Away from healthcare insurers under regulatory pressureToward hospitals, semiconductors, and cyclically exposed sectorsUnderstanding that distinction helps investors avoid emotional decisions and focus on where money is actually flowing.For traders, volatility creates opportunity. For investors, rotation creates relative winners even when headlines look messy.Stay flexible, respect risk, and remember that markets rarely move in straight lines. This article was written by Itai Levitan at investinglive.com.

ECB's Kocher sees inflation risks in both directions, stresses full optionalityGold analysis for today show profit takers coming at gold futures price $5094The S&P 500 remains on track to reach new record highs amid positive risk sentimentThe Indian Rupee stalls around record lows as the EU and India sign a historic trade dealAs good a time as any for Japan to intervene?FOMC meeting this week set to be an uneventful one - Goldman SachsWhat's next for USDJPY as the bearish momentum from intervention risk wanes?Silver back on the run again, up 9% on the dayWhat are the main events for today?FX option expiries for 27 January 10am New York cutUSD/JPY finds timely bounce off key technical support for nowThere's only one key question when it comes to the Fed meeting this week - Morgan StanleyMarkets:Silver rebounds to $111.80 from yesterday's close at $103.89Gold is back up to $5080 from $5011WTI crude oil up 4 cents to $60.66S&P 500 up 16 points to 6998CHF leads, USD lagsUS 10-year yields up 1 bps to 4.22%It's been a pretty slow session given the lack of tier one data and meaningful news. The only notable event was a spike in the JPY around 09:51 GMT with market participants wondering if that was another rate check. Precious metals also remain in the spotlight after a record breaking day in silver yesterday. The losses are getting erased today and we might see new record highs in the US session. The mood in the markets remains positive as US futures continue to climb ahead of the FOMC decision tomorrow. The Fed is expected to keep everything unchanged tomorrow as the await more data before considering rate adjustments. There's a good chance though that Trump decides to steal the show by announcing his Fed chair pick potentially around the FOMC event.In the American session, the main highlights will be the weekly US ADP jobs data and the US Consumer Confidence report. The weekly ADP data has been showing positive growth throughout December but that's not something the markets cared much about given that we already got the December NFP report.Today we will see if that momentum continued into January as the ADP will also cover the first week of the month. Based on the US Jobless Claims data, the labour market seems to be improving, and we will see if that's really the case with the US NFP report next week.The US Consumer Confidence is expected at 90.9 vs 89.1 prior. The latest University of Michigan consumer sentiment survey ticked higher and even though the overall improvement was small, it was broad based, seen across the income distribution, educational attainment, older and younger consumers, and Republicans and Democrats alike. Note that the consumer confidence report is heavily weighted toward labor market conditions, while consumer sentiment focuses more on household financial conditions. This article was written by Giuseppe Dellamotta at investinglive.com.

EUROPEAN SESSIONIn the European session, we don't have much on the agenda other than a couple of low tier releases like the French consumer confidence and the Spanish unemployment rate. None of the data will change anything for the markets or the ECB, so the reaction will be muted. Traders are now just waiting for the FOMC decision tomorrow.AMERICAN SESSIONIn the American session, the main highlights will be the weekly US ADP jobs data and the US Consumer Confidence report. The weekly ADP data has been showing positive growth throughout December but that's not something the markets cared much about given that we already got the December NFP report.Today we will see if that momentum continued into January as the ADP will also cover the first week of the month. Based on the US Jobless Claims data, the labour market seems to be improving, and we will see if that's really the case with the US NFP report next week. The US Consumer Confidence is expected at 90.9 vs 89.1 prior. The latest University of Michigan consumer sentiment survey ticked higher and even though the overall improvement was small, it was broad based, seen across the income distribution, educational attainment, older and younger consumers, and Republicans and Democrats alike. Note that the consumer confidence report is heavily weighted toward labor market conditions, while consumer sentiment focuses more on household financial conditions.CENTRAL BANK SPEAKERS17:00 GMT/12:00 ET - ECB's Nagel (neutral - voter) This article was written by Giuseppe Dellamotta at investinglive.com.

January FOMC preview: Fed seen on hold with little new guidanceMorgan Stanley sees gold at $5,700 as banks turn even more bullishJapan service inflation holds near highs as wage pressures persistChina industrial profits rebound in December as price pressures easeChina to roll out policy to manage AI job impact and boost employmentMicron to expand memory chip production in Singapore amid global shortageChina Dec 2025 Industrial Profits +5.3% y/y (prior -13.1%)Financial Times says "EU to announce ‘mother of all’ Indian trade deals"PBOC sets USD/ CNY reference rate today at 6.9858 (vs. estimate 6.9548)Australian December Business confidence 3 (prior 1) & Conditions 9 (prior 7)UK PM Starmer heads to China to reset UK ties amid growing US tensionsUK shop price inflation hits two-year high as food costs accelerateJapan Services PPI (December 2025) 2.6% y/y (prior +2.7%)TD Securities: Dollar weakness overdone, only modest downside seen in 2026Brazil set to dominate China soybean imports in early 2026 as prices undercut U.S.ExSAFE official: China RMB faces domestic reform test as cracks emerge in dollar dominanceTrump hikes South Korea tariffs to 25%, citing stalled trade dealMedicare rate proposal shocks insurers, US health stocks slide after hoursinvestingLive Americas market news wrap: Silver squeezes to $117 then fadesSummary:Trump revives Asia-Pacific trade tensions by lifting tariffs on South Korean goods to 25%, before Seoul signals fast-tracked legislative actionJapan service-sector inflation remains firm, reinforcing wage-driven price pressureUK shop price inflation jumps to a two-year high, challenging “inflation has peaked” narrativesAustralian business conditions improve but capacity constraints remain elevatedChina’s industrial profits return to growth, though gains are uneven and driven by foreign firmsGeopolitical risk lingers as reports suggest Iran’s leadership is under growing internal strainUS President Donald Trump said he will raise tariffs on South Korean goods to 25% from 15%, citing Seoul’s failure to ratify a 2025 trade deal. The move targets autos, lumber and pharmaceuticals, reviving Asia-Pacific trade tensions. Korean export-linked stocks weakened, with Hyundai Motor shares initially down around 4%.In a later update, a South Korean ruling party official said legislation to enact US investment commitments has now been introduced and will soon be reviewed. Seoul’s trade envoy is also expected to visit Washington shortly to meet the USTR, suggesting efforts are under way to prevent further escalation.In Japan, services inflation signals remained firm. The Bank of Japan said the services producer price index rose 2.6% y/y in December, underscoring ongoing cost pass-through driven by labour shortages. The data reinforces the BoJ’s view that wage-driven inflation pressures remain entrenched.UK inflation pressures also resurfaced at the retail level. Shop price inflation rose to 1.5% y/y in January, its fastest pace since early 2024, according to the British Retail Consortium. The BRC said higher energy costs and increased employer National Insurance contributions continue to feed through, challenging claims that inflation has peaked.In Australia, business activity improved in December, with the National Australia Bank survey showing business conditions rising two points to +9 and confidence edging up to +3. Sales and profits strengthened, while employment remained around acceptable levels but well below prior highs. Capacity utilisation eased only marginally to an elevated 83.2%, suggesting limited spare capacity. Wage, cost and price indicators rose slightly, though final prices remained relatively subdued compared with CPI, and retail price growth slowed to its weakest pace since 2020.China’s industrial sector showed tentative stabilisation. Industrial profits rose 5.3% y/y in December, rebounding from November’s 13% slump and delivering the first full-year gain since 2021, albeit a modest 0.6%. The improvement was driven entirely by foreign firms, which posted a 4.2% profit rise in 2025. State-owned enterprises saw profits fall 3.9%, while private-sector profits were flat year-on-year.On geopolitics, the The New York Times reported that President Trump has received multiple intelligence assessments suggesting Iran’s leadership is under increasing strain, potentially at its weakest point since the 1979 Islamic Revolution. The report cited several people familiar with the intelligence. Major FX rates, even yen, traded in limited ranges. Asia-Pac stocks: Japan (Nikkei 225) +0.4%Hong Kong (Hang Seng) +1.2% Shanghai Composite -0.01%Australia (S&P/ASX 200) +0.82% This article was written by Eamonn Sheridan at investinglive.com.

China’s industrial profits rebounded sharply in December, beating expectations and offering early signs of easing deflationary pressure.Summary:China industrial profits rose 5.3% y/y in DecemberGrowth beat expectations for a sharp declineProducer price deflation eased to a one-year lowDecember rebound snapped a two-month contractionFull-year profits rose for first time since 2021China’s industrial profits returned to growth in December, snapping a two-month contraction and coming in well above market expectations, according to official data released on Tuesday.Figures from the National Bureau of Statistics showed industrial profits rose 5.3% year-on-year in December, sharply outperforming expectations for an 11% decline. The rebound was supported by easing price pressures, with producer prices recording their smallest annual fall in more than a year.The improvement suggests margins across parts of the industrial sector may be stabilising after prolonged deflationary pressure, offering tentative signs that policy support and improving demand conditions are gaining traction late in the year.For 2025 as a whole, industrial profits increased 0.6%, marking the first annual rise since 2021 and ending a multi-year period of earnings contraction. While the pace of growth remains modest, the return to positive territory is likely to be welcomed by policymakers seeking to reinforce confidence in the industrial sector.However, analysts caution that the sustainability of the rebound will depend on further progress in demand recovery and a continued easing in producer price deflation, which has weighed heavily on corporate profitability in recent years. This article was written by Eamonn Sheridan at investinglive.com.

China is preparing targeted policies to manage AI-driven labour disruption while promoting job creation and employment stability.Chinese state media, Xinhua, with the info. Summary:China to issue policy on AI’s impact on employmentFocus on job creation and managing labour disruptionGraduate and youth employment prioritisedUrban–rural employment systems to be unifiedLong-term safeguards aimed at preventing return to povertyChina will roll out a dedicated policy framework to address the employment impact of artificial intelligence, as part of broader efforts to stabilise and expand the labour market, according to the Ministry of Human Resources and Social Security.The policy document will focus on managing AI-related disruptions while promoting job creation, with targeted support for key industries and a particular emphasis on employment for college graduates. Authorities see graduate employment as a priority area amid structural shifts driven by technology adoption and economic transition.Beyond AI, the initiative forms part of a wider labour strategy aimed at strengthening long-term employment resilience. Measures include unifying urban and rural employment systems to improve labour mobility and access to opportunities, while reducing structural disparities between regions.The government also plans to establish permanent support mechanisms to prevent households from slipping back into poverty, using sustained employment initiatives as a central pillar. These measures are intended to reinforce income stability and social security as technological change reshapes labour demand.Overall, the policy signals Beijing’s intent to balance productivity gains from AI with social stability, ensuring that technological progress supports, rather than undermines, employment growth. This article was written by Eamonn Sheridan at investinglive.com.

For the full year 2025 +0.6% y/y (prior +0.1%).I'll have more to come on this separately ... ADDED: China industrial profits rebound in December as price pressures ease This article was written by Eamonn Sheridan at investinglive.com.

This via the Financial Times (gated):I'll post more separately as it becomes available. This article was written by Eamonn Sheridan at investinglive.com.

Australian business conditions improved in December as sales and profits strengthened, while elevated capacity utilisation suggests limited spare capacity.Summary:NAB business conditions rose to +9 in DecemberBusiness confidence edged higher to +3Sales and profits strengthened, employment steadyCapacity utilisation remains elevated at 83.2%Data point to improved Q4 economic momentumAustralian business activity strengthened in December, with sales and profits improving and capacity utilisation remaining elevated, reinforcing signs that economic momentum picked up late in 2025, according to a survey from National Australia Bank.NAB’s business conditions index rose two points to +9 in December after a sharp fall the previous month. Business confidence edged up to +3 from +2, remaining positive but subdued by historical standards.Sales were a key driver of the improvement, jumping three points to a historically strong +16, adding to broader evidence of a recovery in consumer demand. Profitability also improved, with the profits index rising three points to +7, while employment held steady at +4.Price pressures firmed modestly over the three months to December, while capacity utilisation eased only slightly to 83.2%, a level NAB considers elevated and indicative of limited spare capacity across the economy.NAB chief economist Sally Auld said the survey aligns with the view that economic momentum improved in the fourth quarter, noting that high capacity utilisation remains broad-based rather than confined to a handful of sectors.Cyclically sensitive industries, including retail and manufacturing, recorded gains in both business conditions and employment. Trend activity was strongest in services, underscoring the sector’s continued role as the primary engine of domestic growth.Overall, the survey suggests the economy may be operating close to its effective speed limit, a signal likely to be watched closely by policymakers assessing inflation risks and the outlook for monetary policy. --The survey reinforces signs of improving late-2025 momentum and highlights persistent capacity constraints. For markets, the data supports the view that inflation risks remain asymmetric, even as growth stabilises.--Reserve Bank of Australia meeting next week:There are some analysts tipping a rate hike. This article was written by Eamonn Sheridan at investinglive.com.

UK Prime Minister Keir Starmer heads to China to mend ties and diversify Britain’s economic partnerships as relations with the U.S. grow more uncertain.Summary:Starmer makes first UK PM visit to China since 2018Trip aims to reset ties and boost trade and investmentVisit comes amid strains with the U.S. under TrumpUK–China trade worth about £100bn annuallyCritics question whether engagement delivers real gainsUK Prime Minister Keir Starmer is travelling to China this week on the first visit by a British leader since 2018, seeking to repair relations with the world’s second-largest economy while reducing Britain’s reliance on an increasingly unpredictable United States, according to Reuters.The three-day visit comes at a sensitive geopolitical moment, with tensions flaring between London and Washington following threats by U.S. President Donald Trump to take control of Greenland. Starmer will be accompanied by two ministers and dozens of business leaders, meeting Chinese officials in Beijing before travelling to Shanghai and making a brief stop in Japan.Analysts say the visit reflects a recalibration in UK foreign policy. Kerry Brown said discussions are likely to focus on how both sides interpret Washington’s current posture, noting that Britain may now find itself closer to Beijing than the U.S. on certain global issues, including artificial intelligence, public health and climate policy.Since taking office in 2024, Starmer has prioritised resetting ties with China after relations deteriorated under previous governments over Hong Kong, espionage allegations and cyber security concerns. The trip also gives Beijing an opportunity to court another U.S. ally grappling with Trump’s volatile trade policies, following a recent visit by Canada’s prime minister.Britain hopes improved economic ties with China will support growth and investment, with bilateral trade worth roughly £100bn in the year to mid-2025. However, critics argue engagement has so far delivered limited economic gains, with China accounting for just 0.2% of UK foreign direct investment, compared with about one-third from the United States.Starmer has sought to balance engagement with caution, acknowledging national security risks while arguing that closer business ties remain in Britain’s national interest. His government recently approved plans for a large Chinese embassy in London, a decision that has drawn criticism from lawmakers concerned about security implications. This article was written by Eamonn Sheridan at investinglive.com.

UK shop price inflation surged in January, driven by food and cost pressures, complicating the outlook for a smooth fall in headline inflation.Summary:UK shop price inflation jumped to 1.5% y/y in JanuaryFastest pace since February 2024, BRC data showsFood inflation accelerated to 3.9%, led by meat and produceHigher energy costs and National Insurance cited as driversData challenges claims inflation pressures have peakedUK shop price inflation accelerated sharply in January, rising at its fastest pace in nearly two years, as higher food, furniture, and health and beauty prices fed through to consumers, industry data showed.Figures from the British Retail Consortium showed its shop price index rose 1.5% year-on-year in January, up from a 0.7% increase in December and the strongest pace since February 2024. Food prices climbed 3.9% annually, accelerating from 3.3% in December and marking the biggest rise since October, with meat, fish, and fruit leading the gains.Non-food prices also turned firmer, rising 0.3% year-on-year, the strongest increase since February 2024, as retailers passed on higher operating costs. The BRC said elevated energy bills and the ongoing impact of higher employer National Insurance contributions continued to weigh on pricing decisions, particularly in labour-intensive sectors such as retail.BRC chief executive Helen Dickinson said the latest data contradicts claims that inflation pressures have peaked, warning that cost increases are still feeding through supply chains.The BRC data contrasts slightly with official inflation figures, which showed UK CPI rose to 3.4% in December from 3.2%, covering a broader basket of goods and services. Food and non-alcoholic drink prices rose 4.5% year-on-year, below the Bank of England’s November forecast of 5.3%.Despite the recent pickup, Andrew Bailey has said he expects headline CPI to fall close to 2% by April or May, largely due to favourable base effects from regulated prices and taxes. However, the January shop price data adds to concerns that underlying inflation pressures may remain sticky into the first half of the year. This article was written by Eamonn Sheridan at investinglive.com.

Earlier:Japan December 2025 PPI +2.4% y/y (expected +2.4%, prior +2.7%Nothing in these data to contradict the BOJ rate hike path. Data post only, more detail to follow separately ... ADDED: Japan service inflation holds near highs as wage pressures persist This article was written by Eamonn Sheridan at investinglive.com.