Cost of living in the US

After nearly five years of high prices, many middle-class earners thought life in America would be more affordable by now. Costs for goods and services are 25pc above where they were in 2020. Even though the inflation rate is below its 2022 high, certain essentials like coffee, ground beef and car repairs are up markedly this year. Pew Research Centre defines the middle class broadly as having a household income between about $66,666 and $200,000, depending on where they live. Perpetual sticker shock is making many within the group feel worse about both their own finances and the future of the country. Cost-of-living issues also pushed voters this month toward candidates who promised to address the affordability crisis and have recently weighed on President Trump’s approval ratings.

(Adapted from “The Middle Class Is Buckling Under Almost Five Years Of Persistent Inflation,” by Rachel Louise Ensign and Rachel Wolfe, published on November 21, 2025 by the Wall Street Journal)

Billionaire galore

The total number of billionaires across the globe reached new heights in 2025, due partly to the soaring valuations of tech companies and rising share prices, according to a new study by Swiss banking giant UBS. Some 2,900 billionaires now control $15.8tr, up from about 2,700 billionaires with a cumulative wealth of nearly $14tr a year earlier. The number and wealth of billionaires as a whole were boosted by the second-highest number of new billionaires minted in a year — 287 — since UBS began tracking that figure in 2015. Only 2021, with its flood of government stimulus and low interest rates that boosted the prices of assets, saw a higher number of new billionaires created. Also boosting wealth: rising investment gains over the 12 months ended April 4, 2025, the period covered by the study.

(Adapted from “The World Has More Billionaires Than Ever,” by Juliet Chung, published on December 4, 2025, by the Wall Street Journal)

Indian Inflation

India’s consumer inflation rose to 0.71pc in November, accelerating from an all-time low of 0.25pc in the prior month. The headline inflation number was in line with estimates of a 0.7pc rise in the consumer price index, according to a Reuters poll of economists’ median estimates. Low inflation environment, coupled with the weakening of some key economic indicators, led India’s central bank to cut its policy rates by 25 basis points recently, allowing it to boost the country’s already strong economic growth. In August, the US imposed an additional 25pc tariff on Indian imports, raising total duties to as high as 50pc, with textiles, gems and jewelry, and marine products being hit the hardest. While exports to the US account for just about 2pc of India’s GDP, a prolonged weakness in those labour-intensive sectors could lead to job losses and weigh on overall growth.

(Adapted from “India’s Inflation Rises To 0.71pc In November As Decline In Food, Fuel Prices Loses Steam,” published by Priyanka Salve, on December 12, 2025, by CNBC)

AI shopping

Many shoppers are turning to AI platforms like OpenAI’s ChatGPT, Google’s Gemini and Perplexity this holiday season to help them buy gifts for their loved ones. Whether consumers use them to get gift ideas or compare prices, AI platforms are poised to reshape the shopping experience and drive billions in revenue this holiday season as it becomes harder to get discovered on traditional search platforms. In a report published last month, Salesforce said it expects AI to drive a staggering $263 in global online holiday sales this year, representing 21pc of all holiday orders. Surveys conducted by Visa, Zeta Global and other organisations found that between 40pc and 83pc of consumers plan to use AI for shopping this holiday season. Meanwhile, AI traffic to US retail sites surged 760pc between Nov 1 and Dec 1, according to Adobe.

(Adapted from “AI Tools Could Drive $263 Billion In Holiday Sales. Walmart And Target Are Racing To Get In,” by Gabrielle Fonrouge and Melissa Repko, published on December 12, 2025, by CNBC)

Published in Dawn, The Business and Finance Weekly, December 15th, 2025