The Know Daily - Wednesday 14 February 2024

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Mexico recently announced the creation of 20 new protected areas across the country, spanning 2.3 million hectares in total. The move will strengthen protection for species ranging from whale sharks to jaguars, said Mongabay, as well as safeguard “ecologically important coral reefs” and “areas of cultural significance to Indigenous communities”.

💰 Inflation surprise

UK inflation - which measures the rate at which prices are increasing - remained at 4% in January, the Office for National Statistics (ONS) revealed this morning.

Tell me more.
The 4% figure is a “softer reading than expected”, noted The Guardian, given that economists had expected a small increase to 4.2% in January. Instead, inflation remained unchanged from December, and economists say that it is likely to fall again in the coming months. Essentially, it suggests inflation “is on a downward trajectory”, added the paper.

How is inflation measured?
Inflation - the increase in the price of goods and services over time - is measured by tracking the prices of everyday items (like food and fuel) through measures like the Consumer Prices Index (CPI). The CPI is the primary measure of inflation - although there is also ‘core inflation’, which doesn’t include things like energy and food, explained the BBC.

So why has inflation stayed the same?
The ONS said that rising energy prices (higher gas and electricity charges) in January were expected to contribute towards a rise in inflation, but that “furniture and household goods” prevented the expected increase.

How has the news been received?
Chancellor Jeremy Hunt said that the surprise figures showed that the government’s plan to bring inflation down to 2% “was working”. Meanwhile, the Shadow Chancellor Rachel Reeves noted that “prices are still rising in shops” and said that it is “time for a change”, reported The Independent.

What happens next?
Today’s news is a “good sign” for the cost of living going forward, given that food prices have seen their first monthly fall for over two years, a senior economist told the BBC. The fact that inflation has not risen also “bodes well for interest rates”, noted Sky News’ business correspondent Arthi Nachiappan.