US Inflation Cools, Economy Grows, But Jobs Lag

Inflation in the United States cooled in January, according to the Labor Department, while the US labor market showed signs of a freeze, and Storm Nils caused fatalities in France. The consumer price index rose by 2.4% over the 12 months to January, down from 2.7% the prior month, marking the slowest pace since May, according to BBC Business. Meanwhile, the storm, described as having "uncommon strength" by Meteo-France, claimed two lives in France, leaving approximately 450,000 people without power as of Friday morning, reported Sky News.

The easing inflation could bolster arguments that the central bank is in a position to cut interest rates, as noted by BBC Business. However, some analysts have cautioned that progress toward the Federal Reserve's 2% target could stall if companies pass on tariff costs or labor shortages push up prices.

Simultaneously, the US labor market showed a concerning trend. Job openings and hiring rates have dropped to multi-year lows, according to BBC Business. Jacob Trigg, a former project manager, shared his experience of applying for over 2,000 jobs without success, highlighting the difficulties in the current market. "It's a huge surprise because I've always been able to get a job very easily," Trigg said, as reported by BBC Business.

In international news, German Chancellor Friedrich Merz called for the United States and Europe to repair and revive transatlantic trust during a speech at the Munich Security Conference, according to Al Jazeera. Merz emphasized the benefits of Washington's role in NATO.

In other developments, the Bangladesh Nationalist Party (BNP) claimed victory in Bangladesh's first election since a 2024 uprising, according to Al Jazeera. Unofficial results showed the BNP winning 209 seats, surpassing the 151-seat threshold needed for a majority. Tarique Rahman, the son of former Prime Minister Khaleda Zia, is set to become the country's next prime minister.

In France, Storm Nils caused two deaths, with one on Thursday in the Landes department and another in Tarn-et-Garonne, according to Sky News. Government spokesperson Maud Bregeon confirmed the fatalities, with the second victim found in their garden.