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Americans may be noticing discounts on some everyday essentials during their weekly shopping trips. This does not mean, however, that the battle against inflation has been won.
Walmart posted sales in the first quarter in stores open at least a year, climbed 3.8% from the previous year, in part thanks to its ability to keep prices low even as inflation remains persistent. The largest retailer in the United States is a mainstay for cash-strapped consumers looking for deals on groceries and other merchandise.
Now, Walmart is going even further. The supermarket announced on May 16 that it had reduced prices on almost 7,000 items in its stores, highlighting deflationary trends in general merchandise. Inflation in the first quarter increased by half compared to last year, the press release added.
“Our combination of everyday low prices and lots of markdowns is resonating” with consumers, Walmart CEO Doug McMillon said on a call with analysts.
Monday, Target slashed prices on more than 1,500 items, ranging from laundry detergent to cat food to sunscreen, with thousands more price drops expected over the summer. For example, the price of a 16-pack of Huggies baby wipes fell to 99 cents from $1.19 and Good & Gather brand roasted nuts now cost $5.29 from $6.89, according to a release Press.
The company announced its fourth quarter of sales down at stores open at least a year, as higher prices strain Target's middle-class customer base.
Other retailers, including Ikea and Aldi, have also cut prices in recent months.
Some economists say that while retailers' price cuts are a welcome sign of lower overall inflation, inflation in other areas it must also fall to meet the Federal Reserve's 2% target.
Price cuts at big box stores “are going to help, but we'll still have to see housing inflation come down, which is a problem, and wage growth continue to normalize,” said Preston Caldwell, U.S. economist. senior at Morningstar. Research services.
The median price of a used home in the United States rose 5.7% in April up from a year earlier at $407,600, the highest April price on record. Wage increases slowed last month but remain above historical averages.
The Fed's progress in fighting inflation stalled in the first quarter of this year, raising concerns that the central bank might not cut rates until this fall or even next year. Unemployment remains at a historic low, which worries some because the Fed will want to see the labor market calm down further before deciding to ease its restrictive policy.
Yet recent data suggests that inflation is slowing again. Consumer prices increased by 3.4% for the 12 months ended in April, down from 3.5% the month before, according to data from the Bureau of Labor Statistics. Investors will receive more inflation data next week from the personal consumption expenditures index for April.
The economy is also showing signs of slowing. The Americans are fall behind on their payments, reducing their pandemic savings and becoming more frugal. Retail sales were unchanged last month from March, when spending rose by a downwardly revised 0.6%, another sign that consumers are cutting back on spending.
Will Scarlett Johansson sue OpenAI for creating a voice assistant that resembles the actor's performance in the 2013 film “Her,” about a man who falls in love with an artificial intelligence?
This is how things could go after Johansson said OpenAI tried to hire her to voice an AI assistant for ChatGPT and, when she refused, continued with a similar voice. OpenAI co-founder and CEO Sam Altman could be directly in the crosshairs of such a lawsuit, writes my colleague Brian Fung.
Today, legal experts say Johansson could have a powerful and credible case in court if she decides to sue, pointing to a long line of past cases that could result in significant damage to one of the world's leading companies. AI and raise questions about the industry. the willingness to deal with the many complicated complications of AI.
The fact that OpenAI was apparently unaware of this legal history, or at worst willfully ignored it, highlights what some critics see as a lack of industry oversight in the AI space. and the need for greater protection for creators.
OpenAI did not immediately respond to a request for comment.
According to legal experts, two types of law could be involved here, but only one is likely to come into play based on the currently known facts.
British regulators on Wednesday fined Citigroup a combined £62 million ($79 million) for failures in its trading systems that nearly led to the dumping of shares worth $189 billion on the European markets, reports my colleague Anna Cooban.
The Financial Conduct Authority (FCA) has fined Citigroup almost £28 million ($36 million) (VS), while the Bank of England's Prudential Regulation Authority fined it nearly £34 million ($43 million) following investigations into the U.S. bank, according to court filings. authorities.
Regulators reduced their fines by 30% because Citigroup agreed to settle the case. Without this reduction, the combined fine would have exceeded £88 million ($112 million).
“We are pleased to have resolved this issue that dates back more than two years and stemmed from an individual error that was identified and corrected within minutes,” a Citigroup spokesperson told CNN . “We immediately took steps to strengthen our systems and controls, and remain committed to ensuring full regulatory compliance. »
The spokesperson declined to comment on reports that the swap was the result of a big finger error, where incorrect data was entered because the wrong key was pressed.