Even with slower inflation, households face persistent cost pressures

Inflation and affordability remain concerns across several economies, even where price increases have moderated: Malaysia’s central bank says headline inflation does not capture how frequent purchases such as food shape household experience, and that incomes must rise to restore purchasing power. In the United States, slow wage growth and a subdued hiring market are making it harder for households to keep pace with elevated prices, while strong employment and sticky inflation have raised expectations that Federal Reserve interest rates may remain high. Investors are watching the October U.S. inflation report for clues about whether price pressures are easing or could prompt another rate increase, with higher-rate expectations weighing on risk assets. In North Macedonia, the opposition SDSM says rising living costs, low wages and insufficient government support are worsening living standards; its claims about the government’s policies and finances are allegations by the party.