Off-the-charts inflation may be a distant 2022 phenomenon, but—unlike the buzz around the Oscars slap—we’re not entirely over it. Price growth is still not back to levels that would satisfy Jay Powell, and shoppers continue to deal with the fallout.

Prices grew faster than economists expected last month, according to the consumer price index data the government released yesterday.

• They climbed 0.3% in January (slightly more than in December) and 3.1% from a year prior.
• Excluding food and energy prices, January’s inflation was 0.4%, a bit over December’s reading, and 3.9% more than the prior January.

Finance freaks who talk about interest rates in social settings will point out that things aren’t so bad, since inflation isn’t too far from the Fed’s 2% annual target. But shoppers might argue that just because prices are growing more slowly doesn’t mean things are costing them less.

Checkout aisle blues

While used cars and clothes became cheaper last month, a big jump in housing costs was the culprit for most of last month’s consumer price growth. Food is also getting more expensive: Grocery prices rose more than in previous months, while dining out became 5.1% pricier than a year before.

Food inflation has also taken more insidious forms. Some brands are engaging in a devious tactic dubbed “shrinkflation”—keeping sticker prices the same while reducing the portion contained within a package. President Biden shared a video on Super Bowl Sunday in which he scolded companies for selling downsized game day snacks without downsized prices.

He’s hoping the message will hit a nerve with Americans who’ve been feeling glum about the economy despite low unemployment, rising wages, and a surging stock market.

As for the mythical rate cuts…the latest inflation report makes it more likely the Fed will wait longer to lower interest rates.—SK

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House Republicans impeached Alejandro Mayorkas on their second try. The Homeland Security Secretary was impeached by a single vote on Tuesday night, preventing a second embarrassment for House GOP members after their first attempt to punish Mayorkas for his alleged mishandling of the southern border failed. Republicans tried for months to impeach Mayorkas, even though bipartisan legal scholars say his actions do not constitute “high crimes and misdemeanors” required for a conviction, while many observers argue the impeachment attempt itself is unconstitutional. Mayorkas is now the first sitting cabinet member in US history to be impeached. The charges are likely to be rejected in the Senate.

Leaders met in Cairo to negotiate a Gaza cease-fire agreement. CIA Director William Burns held talks with Egyptian President Abdel Fattah Al-Sisi, Qatari Prime Minister Sheikh Mohammed bin Abdulrahman al-Thani, and David Barnea, the head of Israel’s Mossad intelligence agency, in an attempt to advance negotiations between Israel and Hamas. National Security Council Spokesperson John Kirby told reporters that talks were “moving in the right direction” but cautioned that “nothing is done until it is all done.” President Biden said the US-brokered deal would free hostages and pause fighting for about six weeks.

The CDC is reportedly considering dropping its five-day Covid isolation recommendation. Starting in April, the agency will instead advise Americans that they no longer need to stay home if they are fever-free for at least 24 hours without the help of medication and their other symptoms are improving, the Washington Post reported. The guidelines under consideration, which would mark the CDC’s first change to Covid isolation protocol since 2021, come as most Americans have some immunity to the virus from vaccination or prior infection. According to experts, the decision would align Covid guidelines with those for flu and RSV.

If your romantic plans for today involve calling a car to get to your date, ordering in, or picking up your paramour from the airport, you may want to fire up Plan B.

As part of a nationwide strike by Uber and Lyft drivers and DoorDash delivery workers, more than 130,000 workers are expected to refuse rides to and from airports in 10 US cities from 11am to 1pm today. An estimated 3,000 Deliveroo and UberEats drivers in the UK will also halt work for five hours.

The strike, on one of the busiest days of the year for ride-hailing and delivery apps, comes a week after Lyft announced it would guarantee weekly earnings in a bid to attract more drivers, and Uber posted its first annual profit since going public. Lyft has had a bumpy ride this week: Its stock shot up yesterday in after-hours trading due to a typo in its earnings release, and then pulled back once it was corrected.

Why are they striking? Blame it on the a-a-a-a-a-algorithm. Since companies started using an algorithmic pricing model, drivers are no longer guaranteed a fixed payout from a ride, and many have seen their earnings decrease. In 2023:

• Uber drivers’ monthly average take-home earnings fell 17%, according to gig data provider Gridwise.
• Roughly 15% of Lyft drivers in the US earned less than 70% of what riders paid.

But…Uber claims drivers in the US make roughly $33/hour and are satisfied with their earnings. It also said it doesn’t expect the strike to have a significant impact on trips or prices.—CC

A very soft legal battle is brewing between two powerful plush-makers. Jazwares, the owner of the popular Squishmallows toys, sued rival Build-A-Bear, claiming the latter’s Skoosherz stuffed creatures are a knock-off of its flagship product. Build-A-Bear then countersued, arguing it’s not against the law to slap a tiny face on a pillow.

Some background…Squishmallows exploded in popularity with the help of celebrity buzz and TikTok mentions during the pandemic. Warren Buffett’s Berkshire Hathaway got hold of those cuddly guys when the firm purchased a $12 billion controlling stake in Jazwares in 2022. A Squishmallows offering was the most popular toy of that year, per research firm Circana, with 100 million units sold.

Last month, Build-A-Bear began selling its own line of huggable, round stuffed animals with small smiles. Jazwares claims the toys are too close to its own with their “simplified Asian-style kawaii faces.”

This legal battle isn’t just for shelf space. The stuffed animal industry is Beanie Babies mania-level hot right now, especially for adults. Plushie sales were up 4% last year, hitting $1.7 billion in October even as overall toy sales decreased. Toy brands reported that people over the age of 12 make up about a quarter of all sales.—MM

Stat: What do apes, elephants, and whales have in common, other than being NFT collections? Sadly, they are among the 44% of migratory species with declining populations, according to a new United Nations report. One-fifth of the 1,200 migratory species monitored by the UN are threatened with extinction. While some conservation efforts like wildlife crossings and poaching regulations are helping species relocate safely, experts say those initiatives need to be strengthened. The report follows a 2019 UN assessment that found that 1 million of the Earth’s 8 million species are at risk of extinction due to overconsumption, pollution, and other human activities.

Quote: “A genuine Chernobyl-level disaster.”

If you avoided being compared to the worst nuclear disaster in history yesterday, you had a better day than Madame Web. The upcoming superhero movie, which stars Dakota Johnson as the titular Marvel character, is getting thoroughly trashed by critics, including Rolling Stone’s David Fear, who called it “the Cats: The Movie of superhero movies” in addition to equating it with a nuclear event responsible for the deaths of thousands of people. The film looks to be another major setback for Sony’s Spider-Man cinematic universe following the similarly skewered Morbius.

Read: The Tesla worker who died in a 2022 crash may have been the first “Full Self-Driving” fatality. (Washington Post)

Play: This game shows you a photo from history, and you have to guess where and when it was taken.

Crack your knuckles: Nine myths about joints and arthritis.

Let’s have a word: Dictionary.com’s new words and phrases for 2024 include “greedflation,” “shacket,” and “Barbiecore.”

Walk into Mordor: The Fantasy Hike app uses your walking data to track your progress across (a copyright-friendly version of) Middle-earth.

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