UK inflation fell to 3% in January, its lowest rate since March 2025, driven by decreases in food, fuel, and airfare prices, according to the Office for National Statistics (ONS). Simultaneously, international tensions remain high as Iran and the United States agreed on "guiding principles" after nuclear talks, while the Middle East seemingly edges closer to war. Elsewhere, Peru's Congress impeached President Jose Jeri over corruption allegations, and Palestinians in Gaza entered Ramadan amidst ongoing conflict.
The ONS reported that the January inflation drop, down from 3.4% in December, was "marked," according to ONS chief economist Grant Fitzner. He added that the decrease was "driven partly by a decrease in petrol prices." Economists suggested the fall increased the likelihood of the Bank of England cutting interest rates at its March monetary policy meeting, as reported by BBC Business. Although the rate of inflation has fallen, prices themselves are not coming down, but simply rising at a slower pace.
In the Middle East, tensions escalated as Donald Trump moved warships, and Iran responded with military exercises, leaving "little doubt of its capabilities," according to Sky News. Iran's Supreme Leader Ayatollah Ali Khamenei did not mince words, suggesting that failure to reach a deal could lead to US strikes. However, fresh talks in Geneva between the United States and Iran resulted in an agreement on "guiding principles," as stated by Iran's foreign minister, Abbas Araghchi, according to Sky News. Araghchi noted that while a full agreement might not be reached soon, "the path has started." Oman's foreign minister, Badr Albusaidi, described the talks as "constructive" and noted "good progress."
Meanwhile, in Peru, President Jose Jeri was ousted by Congress just four months into his term due to multiple corruption allegations, according to Al Jazeera. The decision came just weeks before a general election.
Palestinians in Gaza entered Ramadan with heavy hearts, as the Muslim holy month's traditional festivities gave way to grief and survival concerns during a fragile ceasefire that Israel violates on a daily basis, according to Al Jazeera. "There is no joy after we lost our family and loved ones," said Gaza City resident Fedaa Ayyad, as reported by Al Jazeera.
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