Breaking AI & Tech News Analyzed

Apple temporarily pulled the Cal AI food‑logging app from the App Store after it was found to bypass mandatory in‑app purchase (IAP) mechanisms and employ misleading billing designs. The developer quickly addressed the violations, allowing the app to return, but the episode sends a clear message about Apple’s enforcement posture. Apple Removes Cal AI Over Payment Rule Violations App was removed in early April 2026 after Apple identified multiple guideline breaches. Violations included bypassing Guideline 3.1.1, deceptive pricing under Guideline 3.1.2c, and manipulative tactics flagged by the Developer Code of Conduct 5.6. Issues were corrected, and the app was reinstated within days. Financial Stakes: $50 Million ARR and Revenue Implications The app’s parent company, MyFitnessPal, acquired Cal AI when it was generating roughly $50 million in annual recurring revenue. Cal AI sits at No. 4 on the App Store’s Health & Fitness chart, indicating strong user demand. Apple typically takes a 30% commission on IAP revenue; the removal threatened a significant revenue stream for both developer and Apple. Regulatory Context: Epic Games Ruling vs Apple’s Policy Enforcement A 2024 court decision in the Epic Games lawsuit permits U.S. developers to link to external payment systems. Apple’s policy still requires offering its IAP alongside any external link, except for “reader” apps, which Cal AI does not qualify for. The Cal AI case demonstrates Apple’s willingness to enforce legacy rules despite the broader regulatory shift. Industry Ripple Effects and Developer Trust Developers see the action as a warning that Apple will audit payment flows rigorously. Negative user reviews labeling the app a “scam” highlight the reputational risk of non‑compliant designs. Continued strict enforcement may push developers to redesign payment experiences to align with Apple’s guidelines. Future Outlook: Apple’s App Store Policy Trajectory Apple is likely to maintain its dual‑payment requirement, using cases like Cal AI to reinforce compliance. Further legal challenges could pressure Apple to relax rules, but short‑term enforcement appears steadfast. Developers should anticipate ongoing reviews and prioritize transparent, dual‑option payment models to avoid disruptions.

The UK tax authorities have officially confirmed they will appeal a landmark ruling that would have slashed VAT on public electric vehicle (EV) chargers from 20% to 5%. The decision comes after a London tax tribunal found that the government had been overcharging drivers for years due to a technical loophole in the VAT Act.Key DevelopmentsHMRC Appeal: The tax authority stated it is appealing the decision to maintain that standard rate VAT applies to electricity supplied through public EV charging infrastructure.Tribunal Ruling: Judge Harriet Morgan ruled that the 5% rate should have applied to Charge My Street, a not-for-profit operator, based on the interpretation that electricity counts as "always for domestic use" if consumption is under 1,000 kWh per month.Industry Response: Charge point operators like char.gy have criticized the move, calling it a "deeply disappointing decision" that sends the wrong signal to the millions of drivers relying on public networks.Legal Loophole: Accountancy firm Deloitte identified the discrepancy, arguing that the current 20% rate is a "strained construction" of the law.Data & Market ImpactThe financial implications of this tax disparity are significant. Currently, the higher VAT rate generates an extra £85m a year for the Treasury. However, projections indicate this figure could soar to £315m by 2030 as the number of electric cars on UK roads increases. This revenue is currently replacing the £24.5bn in annual fuel duties from petrol and diesel, a gap the government is eager to maintain.Why This MattersThis appeal represents a direct conflict between fiscal policy and environmental goals. The ruling threatens to create a 15% cost disparity between home and public charging, disproportionately affecting the 40% of the UK population who do not have driveways or off-street parking. By maintaining the higher tax rate, the government risks disincentivizing the adoption of EVs among renters and city dwellers, slowing the transition away from polluting petrol and diesel vehicles.Expert InsightThe government's decision to appeal reveals a strategic prioritization of short-term fiscal stability over long-term behavioral change. While the UK aims to accelerate EV adoption, the Treasury is facing immense pressure to replace lost fuel duty revenue. The introduction of pay-per-mile road taxes for electric vehicles suggests the government is preparing to tax EVs regardless of how they are charged. By appealing this ruling, HMRC is attempting to lock in a revenue stream that will only grow as the EV market expands, ensuring that the green transition does not come at the cost of the public purse.What Happens NextThe case will move to the Upper Tax Tribunal, where the government will argue for the standard 20% rate. If the appeal fails, it is expected that other charge point operators will immediately lodge claims for overpaid VAT dating back years. Furthermore, the government’s commitment to introducing pay-per-mile road taxes for all electric vehicles indicates that the era of fuel duty is ending, and a new era of road taxation is beginning, regardless of how the VAT ruling resolves.

Major UK airlines have launched a high-stakes lobbying campaign to secure regulatory concessions from the government, citing a looming crisis in jet fuel supply caused by the conflict in the Middle East. The trade body Airlines UK has submitted a detailed briefing to ministers and the aviation regulator, outlining a package of demands that includes suspending environmental regulations, modifying passenger rights, and slashing taxes. This move comes as the industry braces for potential flight cancellations and fare hikes, warning that Europe has less than six weeks of jet fuel reserves remaining.Key DevelopmentsRegulatory Rollbacks: The industry is seeking to temporarily suspend the emissions trading scheme and relax limits on night flights to reduce operational costs.Passenger Rights Shift: A critical demand is to reclassify fuel-related disruptions as 'extraordinary circumstances,' which would strip passengers of compensation payouts for cancellations or delays.Tax and Slot Relief: Carriers including British Airways, Ryanair, and easyJet are calling for the scrapping of Air Passenger Duty and the easing of 'use it or lose it' slot rules to allow for flight cancellations without penalty.Supply Chain Flexibility: The document requests a relaxation of European fuel standards to allow the import of US Jet A fuel and prioritization of jet fuel production at UK refineries.Data & Market ImpactThe urgency of these demands is underscored by stark warnings from global energy bodies. The International Energy Agency (IEA) recently stated that Europe has only six weeks of jet fuel left if supplies from the Middle East are not restored. Furthermore, IATA has predicted that flight cancellations will begin by the end of next month, a reality already being experienced in parts of Asia. If the current disruption to oil supplies continues, airlines are forced to cut flights and push up fares, threatening the economic stability of the UK's travel sector.Why This MattersThis situation represents a critical juncture for the UK's aviation strategy, pitting immediate operational survival against long-term environmental commitments. For the average traveler, the shift in passenger rights could mean losing financial compensation for delays caused by fuel shortages. For local communities living near airports, the demand to relax night flight restrictions poses a significant quality-of-life issue. Economically, the push to cut taxes and relax rules risks undermining the UK's green targets at a time when the government is striving to meet its climate obligations.Expert InsightThe lobbying effort reveals a defensive strategy by airlines to protect their bottom lines amidst geopolitical volatility. By seeking to reclassify fuel shortages as 'extraordinary circumstances,' the industry is attempting to shift liability away from carriers and onto external geopolitical factors. This is a significant strategic maneuver; if successful, it would effectively shield airlines from compensation claims that have become a major financial burden in recent years. Additionally, the request to suspend the emissions trading scheme highlights the tension between maintaining global connectivity and meeting climate goals.What Happens NextGovernment officials are likely to face intense pressure to balance the needs of the aviation industry with public sentiment regarding noise and environmental standards. We can expect a period of intense negotiation over the 'extraordinary circumstances' clause, which is the most contentious point for passengers. If fuel shortages materialize as predicted by the IEA, the UK government may be forced to implement emergency measures, including fuel rationing and temporary regulatory suspensions, to prevent a total collapse of the air transport network.

Churchill Downs announced a $85 million acquisition of the intellectual property rights to the Preakness Stakes and the Black‑Eyed Susan Stakes, moving the historic race’s branding into the same portfolio as the Kentucky Derby. Key Developments Deal value: $85 million for trademarks and associated rights. Seller: 1/ST Maryland LLC, an affiliate of 1/ST Racing. Transaction covers IP only; race events remain under Maryland’s control via a licensing agreement. Closing expected after the 2026 Preakness, funded with cash on hand and existing credit facilities. CEO Bill Carstanjen frames the purchase as a strategic brand‑expansion move. Data & Market Impact The $85 million price tag represents roughly 3% of Churchill Downs's 2025 market cap, indicating strong confidence in the long‑term value of Triple Crown branding. Ownership of the Preakness IP positions the company to negotiate future media rights, potentially tapping the $200‑$300 million broadcast market that rivals NBC, Fox, Amazon, and Netflix are eyeing. Licensing fees paid to Maryland will generate a steady revenue stream, while the company can monetize the brand through sponsorships, merchandise, and digital experiences. Consolidation may create cross‑promotional opportunities with the Kentucky Derby, enhancing fan engagement and betting volume across the three legs. Why This Matters Fans could see a more unified Triple Crown experience, with consistent branding and potentially larger prize purses. Maryland retains event control, ensuring local economic benefits while offloading brand‑management costs. Racing industry gains a single powerful owner capable of investing in track upgrades, digital platforms, and global marketing. The deal underscores the growing commercial value of heritage sports properties in an era of fragmented media rights. Expert Insight The acquisition is less about the immediate cash flow of the Preakness and more about strategic control of a marquee brand. By owning the IP, Churchill Downs can dictate licensing terms, negotiate more favorable broadcast deals, and bundle the three Triple Crown events for sponsors. This mirrors trends in other sports where leagues or conglomerates secure naming rights to maximize ancillary revenue. The timing also aligns with broader discussions about reshaping the Triple Crown calendar; a unified owner could more easily lobby for schedule adjustments that benefit horse welfare and betting interest. What Happens Next Transaction closure is slated for post‑2026 Preakness, after which Churchill Downs will begin integrating the IP into its marketing engine. Negotiations for the next broadcast contract are expected to start in late 2026, with multiple bidders likely driving up rights fees. Industry stakeholders are monitoring potential calendar shifts—moving the Preakness to three weeks after the Derby as early as 2027—which could be facilitated by the new ownership structure. Long‑term, the deal may set a precedent for further consolidation of historic racing assets under a single corporate umbrella.

British boxing is reeling from a major doping scandal as world heavyweight title contender Lawrence Okolie vows to clear his name after failing a pre-fight drug test that led to the cancellation of his highly anticipated bout against Frenchman Tony Yoka. The failed test, conducted by the Voluntary Anti-Doping Association (VADA), has thrown the heavyweight division into chaos just weeks before Okolie was scheduled to challenge for the WBC belt held by Oleksandr Usyk. Key Developments Lawrence Okolie, former cruiserweight world champion and current WBC No. 1 heavyweight contender, failed a pre-fight drug test The scheduled bout against Tony Yoka in Paris on April 22, 2026, has been officially canceled Okolie claims the failed test is related to treatment for injuries sustained to his bicep and elbow The Voluntary Anti-Doping Association (VADA) informed promoter Queensberry of the adverse finding A press conference scheduled for Tuesday in Paris was canceled at the last minute Attempts to find a replacement fighter for Yoka at short notice failed due to broadcaster DAZN's refusal Data & Market Impact The cancellation represents a significant financial blow to the boxing industry. With the event being broadcast by DAZN, the pay-per-view model would have generated substantial revenue. For Okolie, this represents a potential $5-10 million payday lost, depending on the contract terms. The incident also impacts the WBC's heavyweight division ranking system, with Okolie's No. 1 position now in jeopardy pending investigation outcomes. This scandal follows a pattern of doping issues in boxing, with approximately 3-5% of fighters testing positive annually according to WADA statistics. Why This Matters This doping scandal has far-reaching implications for multiple stakeholders in the boxing ecosystem. For fans, it represents another blow to the sport's integrity, coming amid heightened scrutiny of doping across combat sports. For Okolie, his reputation and career trajectory hang in the balance, with potential suspensions ranging from months to years depending on the investigation's outcome. The WBC now faces challenges in maintaining the credibility of its ranking system, while promoter Queensberry must navigate the financial fallout and potential legal ramifications. In the broader context, this incident adds to the ongoing debate about doping protocols in boxing, which has historically lagged behind other major sports in testing frequency and transparency. Expert Insight The timing of this failed test raises significant questions about the nature of the substances involved and their potential performance-enhancing effects. While Okolie attributes the result to injury treatments, the specific substance has not been disclosed, leaving room for speculation. The fact that this is his second adverse finding related to injuries (bicep last year, elbow this year) suggests either a pattern of treatment methods that conflict with anti-doping regulations or potentially more deliberate attempts to circumvent testing protocols. The cancellation of the entire event rather than finding a replacement indicates the severity with which both the promoter and broadcaster view the situation, suggesting they believe the implications extend beyond a simple procedural error. This case also highlights the inconsistent application of anti-doping rules across different boxing organizations, with VADA's standards often differing from those of national governing bodies. What Happens Next The immediate future hinges on the investigation by anti-doping authorities, which will determine the specific substance involved and whether Okolie can provide legitimate medical documentation for its use. If cleared, he may face a shorter suspension and could quickly return to the title picture. If found guilty, he could face a multi-year ban, potentially derailing his career at a critical juncture. The WBC will need to reassess its ranking system and potentially elevate other contenders. For the heavyweight division, this creates an opportunity for other fighters to position themselves for a title shot against Oleksandr Usyk. The incident may also prompt broader reforms to anti-doping protocols in boxing, including increased testing frequency and standardized procedures across all governing bodies. Promoters and broadcasters may also reconsider their approach to pre-fight testing, potentially implementing more stringent measures to prevent similar situations in the future.

After a decade‑and‑a‑half of steering Apple, Tim Cook will hand the CEO reins to senior vice‑president of hardware engineering John Ternus on September 1, 2026. Cook’s tenure saw the company’s market value swell from under $350 billion to just over $4 trillion, while expanding its product line, services portfolio, and global supply chain. Key Developments 2011 – Cook assumes CEO; Apple valued at ~$350 billion. 2014 – Acquisition of Beats; launch of Apple Pay. 2015 – Introduction of Apple Watch; Apple Music debut. 2016 – AirPods reshape wireless audio market. 2018 – Market cap crosses $1 trillion. 2020 – Transition to Apple Silicon completes by 2023; market cap hits $2 trillion. 2022 – Apple reaches $3 trillion valuation. 2024 – Apple Vision Pro launches as a spatial‑computing platform. 2025 – Market cap tops $4 trillion; services revenue hits $109.16 billion. 2026 – John Ternus named successor; Apple commits $600 billion U.S. investment plan. Data & Market Impact Net income FY2025: $112 billion – an 8× rise from FY2010. Total revenue FY2025: $416.16 billion, with services contributing 26.2% ($109.16 billion). Apple Pay users: ~818 million globally. Apple Music subscribers: > 112 million. Hardware store expansion: ~200 new Apple Store locations worldwide. Why This Matters Investors gain confidence from a ten‑fold market‑cap increase, reinforcing Apple’s status as a blue‑chip mega‑cap. Consumers benefit from a broader ecosystem—wearables, services, and a shift to custom silicon that improves performance and battery life. Suppliers and U.S. policymakers see a $600 billion domestic investment, boosting semiconductor and manufacturing jobs. The mixed reception of the Vision Pro highlights the risk of premium‑price hardware without clear consumer value. Expert Insight Cook’s strategy hinged on three pillars: scaling the hardware base, building a high‑margin services engine, and gaining supply‑chain control through Apple Silicon. The services segment now cushions Apple against cyclical hardware demand, delivering recurring revenue that rivals the core iPhone business. However, the company’s cautious AI rollout—relying on Google’s Gemini—leaves it trailing peers that have integrated generative AI into core experiences. Ternus, a hardware veteran, is likely to double‑down on silicon innovation and price‑point diversification, while the board may push for a faster AI integration to protect market relevance. What Happens Next Hardware focus: Expect accelerated M‑series chip releases and tighter integration with AR/VR hardware, potentially lowering Vision Pro pricing. AI acceleration: Apple Intelligence and a revamped Siri are slated for rollout in 2026‑27, aiming to catch up with OpenAI and Google. Services expansion: New health‑focused features on Apple Watch and deeper Apple TV+ content investments will drive subscription growth. Regulatory landscape: Ongoing scrutiny of App Store commissions could reshape revenue composition; Apple may need to adjust its 30% fee model. Geopolitical risk: Continued tension with China could affect supply‑chain diversification, making the U.S. investment plan a strategic hedge.

An elderly traveler from Swansea lost €701 (£609) after Booking.com refused to provide a refund when their Paris apartment host vanished without confirming the booking. Despite multiple failed attempts by both the traveler and Booking.com's own team to contact the host, the platform only offered a refund if the 83-year-old traveled to Paris to verify the property was inaccessible. Key Developments Customer paid €701 for a Paris apartment through Booking.com Received email stating "request" not confirmed (referring to check-in time, not booking) Multiple attempts to contact host failed Booking.com suggested traveling to Paris to verify property accessibility Customer discovered negative reviews about the same property Elderly customer canceled trip and lost entire payment Booking.com eventually offered refund as "goodwill gesture" Data & Market Impact This case highlights a significant consumer protection issue in the €300 billion European online travel market. Booking.com, as one of the largest platforms with over 1.5 million properties worldwide, faces increasing scrutiny over its refund policies and host verification processes. The incident represents a growing trend of consumers facing difficulties when accommodations don't match expectations or hosts fail to deliver services. Why This Matters This case matters particularly for elderly travelers who may be more vulnerable to accommodation issues and less able to travel to verify problematic bookings. It highlights critical gaps in consumer protection within the online travel industry, where platforms often shift responsibility to property owners while maintaining control over payments. For European travelers, this case underscores the need for clearer refund policies and better host verification systems. The incident also affects trust in online booking platforms, potentially impacting consumer confidence across the entire travel industry. Expert Insight The core issue here is the ambiguous communication around "requests" versus confirmed bookings. Booking.com's system sends emails that confuse check-in time requests with actual booking confirmations, creating unnecessary anxiety for travelers. This appears to be a deliberate design choice that benefits the platform by reducing operational costs associated with managing bookings, but at the expense of consumer clarity. Additionally, the platform's suggestion that travelers should physically verify properties before receiving refunds places an unreasonable burden on consumers, particularly elderly or vulnerable travelers who may not have the resources or ability to undertake such verification. What Happens Next We can expect increased regulatory scrutiny on online travel platforms' refund policies and consumer protection measures. The European Union may push for clearer guidelines on how platforms should handle situations where hosts fail to deliver services. Booking.com and similar platforms will likely face pressure to improve their host verification processes and develop more transparent communication systems regarding booking statuses. Additionally, travelers may become more cautious when booking through third-party platforms, potentially shifting toward direct bookings with properties that offer clearer cancellation policies and direct communication channels.

After 15 years leading one of the world's most influential companies, Tim Cook is stepping down as Apple's CEO at age 65. Cook, who took over the reins from legendary co-founder Steve Jobs in 2011, leaves behind a dramatically different Apple – a hardware and services juggernaut that has grown from a $350 billion valuation to a staggering $4 trillion market cap. His successor, John Ternus, Apple's senior vice president of hardware engineering, will take over as CEO while Cook transitions to executive chairman of the board. Key Developments Tim Cook's tenure at Apple spans nearly two decades, with his leadership beginning in 1998 when he joined the company to oversee worldwide sales and operations. His rise to the top came in 2009 when he temporarily ran day-to-day operations during Jobs' medical leave, and then permanently in 2011 following Jobs' death. Under Cook's leadership, Apple expanded its product ecosystem beyond the iPhone to include the iPad, Mac computer lines, Apple Watch, and AirPods. He also spearheaded Apple's expansion into services with Apple Pay, Apple TV, and Apple Music, creating a tightly integrated network of devices and software. Cook's departure marks the end of an era for Apple, as he is the last direct link to the Jobs-led management team that transformed the company from near-bankruptcy in the late 1990s to the tech powerhouse it is today. Data & Market Impact The financial transformation of Apple under Cook is nothing short of remarkable. When he took over in 2011, Apple's market capitalization stood at approximately $350 billion. Today, that figure has ballooned to $4 trillion, making Apple the first publicly traded company to reach such a valuation. This growth represents a more than 1,000% increase in market value, outperforming most indices and competitors during the same period. Apple's revenue has similarly expanded, with the company consistently reporting quarterly earnings in the tens of billions of dollars. The stock performance under Cook has been exceptional, with Apple shares rising from around $10 (adjusted for splits) in 2011 to over $190 today. This growth has created tremendous value for shareholders and made Apple one of the most influential companies in global markets. Why This Matters Tim Cook's departure from Apple's CEO role matters profoundly for several reasons: For consumers, Apple's transition comes at a critical juncture in tech evolution. The company's decisions on AI integration, privacy standards, and ecosystem development will shape how billions of people interact with technology for years to come. For businesses, Apple's continued growth and innovation under new leadership will influence supply chains, manufacturing processes, and service models across multiple industries. The company's approach to sustainability, privacy, and data security often sets industry standards that competitors must follow. For investors, this leadership change represents both an opportunity and a risk. While Cook has proven Apple's ability to maintain profitability and growth, the market will closely watch how John Ternus navigates future challenges, particularly in emerging technologies like AI and mixed reality. For the tech industry as a whole, Apple's direction under new leadership will influence competitive dynamics across the sector. Companies from Samsung to Microsoft to Google will be adjusting their strategies based on Apple's moves in AI, hardware, and services. Expert Insight Industry analysts view Cook's tenure through a nuanced lens. As Dipanjan Chatterjee, principal analyst for Forrester, notes: 'Steve Jobs was never going to be an easy act to follow. Yet Tim Cook took Jobs' legacy and transformed Apple into a durable, resilient financial powerhouse with explosive market-cap growth.' Bob O'Donnell, president and chief analyst of Technalysis Research, emphasizes Cook's unique strengths: 'After a lot of initial questions about an operations guy becoming CEO, Tim Cook unquestionably brought Apple into a new era that was driven by his vision to build a connected ecosystem of billions of devices. He didn't need to know exactly what products were required, but he did understand the interconnectedness of it all.' However, Chatterjee also points out a key distinction between the two leaders: 'While Cook has kept Apple's growth trajectory moving at a steady clip, he has not overseen a step-change innovation that would reset Apple's competitive position for the next two decades, as Jobs did with the iPhone. Cook's legacy will be defined by steady, disciplined operational stewardship–proof that a company can be more than just exciting and visionary; it can also be immensely valuable to all its stakeholders.' This analysis suggests that Cook's greatest contribution may have been institutionalizing Apple's operational excellence and creating a sustainable business model that extends beyond individual product innovations. What Happens Next As John Ternus prepares to take the helm at Apple, several key developments are likely to shape the company's future: First, we can expect a continued focus on ecosystem integration, with Apple likely to deepen the connections between its hardware, software, and services. Ternus, as a hardware engineering leader, may bring a fresh perspective on how physical devices can better complement Apple's digital offerings. Second, Apple's approach to artificial intelligence is likely to intensify. The company has been criticized for being slow to embrace generative AI, but with increasing competitive pressure from Microsoft, Google, and others, we can expect accelerated AI integration across Apple's product lines. Third, the Vision Pro mixed reality headset, despite its current lukewarm reception, represents Apple's bet on the next computing platform. Ternus will need to determine whether to double down on this technology or pivot to other emerging form factors. Fourth, Apple's services division, which has become increasingly important to the company's revenue, will likely continue to expand. This could include more subscription offerings, enhanced content creation tools, and deeper integration with third-party services. Finally, Apple's position in global markets will face new challenges, including potential regulatory scrutiny, trade tensions, and competition from Chinese manufacturers. How Ternus navigates these geopolitical and economic factors will be crucial to Apple's continued success.

Key Developments Unemployment fell to 4.9% in February, the lowest since last summer. Excluding bonuses, wage growth slowed to 3.6% YoY, the weakest since Nov 2020. Economic inactivity rose to 21% as fewer students sought work. Payrolls slipped by 11,000 in March to 30.3 million employees. Job vacancies fell to 711,000 in March from 721,000 in February. Data & Market Impact Unemployment drop reflects a rise in inactivity rather than new hires. Real wage growth after inflation is only 0.2%, indicating stagnant purchasing power. Retail and wholesale shed 57,000 jobs in the three months to February. Private‑sector pay growth eased to 3.2%, aligning with the Bank of England’s 2% inflation target. Why This Matters The dip below 5% may mask underlying weakness; rising inactivity suggests a pool of discouraged workers who could re‑enter the labour market if conditions improve. Businesses face tighter hiring budgets amid higher energy costs from the Iran war, while households see real wages barely rising, limiting consumer spending. Expert Insight Economists view the unemployment fall as a statistical artefact driven by more people leaving the labour force, not by robust job creation. The sudden escalation of the Iran conflict is already pressuring energy prices, which feeds into higher production costs and prompts firms to freeze hiring. The Bank of England’s tolerance for 3.2% pay growth signals a cautious stance, but persistent inflation could force tighter monetary policy. What Happens Next ONS will publish March inflation figures on Wednesday, shaping BoE rate‑setting. If energy‑price pressures persist, payrolls may contract further in Q2. Policy makers could introduce targeted support for sectors hit by NIC and minimum‑wage hikes. Monitoring the inactivity rate will be crucial to gauge whether the labour market is truly recovering.