The Know Daily - Wednesday 16 August 2023

_{Wednesday 16 August ∙ Read in 5m 30s ∙ Listening to Olivia Rodrigo}

Meet two of the contenders in the running to be crowned Tree of the Year 2023👇. This year’s national contest, organised by the Woodland Trust conservation charity, is all about celebrating the urban trees which elevate neighbourhoods by supporting wildlife, cleaning air and boosting wellbeing. Which of the 12 tree-mendous finalists are you rooting for?

💸 Economy explainer

The UK’s annual inflation rate fell to 6.8% in July, down from 7.9% in June - but what does this actually mean for me and you?

What’s behind the fall?
The Office for National Statistics has said that the main reason for the fall is that the big jump in gas and electricity bills which we saw in July 2022 was not repeated this year. Another factor is that food inflation fell to below 15% last month, although it still remains high.

How good is this news?
“Many have cautiously welcomed the easing - but it's not totally positive news,” said Sky News. Despite the sharp fall, UK inflation remains higher than that of many other major economies. Inflation dropped to 5.3% in the eurozone and 3.2% in the US last month.

And, as The Guardian pointed out, we are seeing “less encouraging news” when it comes to core inflation, which strips out volatile items such as fuel and food. Unlike annual inflation, this remained unchanged at 6.9% in July, close to a 30-year high.

What might happen next?
Today’s figures also show that prices increased less rapidly than wages for the first time since autumn 2021, meaning inflation is likely to stay high for longer.

This news, along with the fact that core inflation has stopped falling, means that the Bank of England is likely to put up interest rates for the 15th time in a row when it meets in September.

All being said, Chancellor Jeremy Hunt has welcomed the latest figures. “The decisive action we’ve taken to tackle inflation is working,” he tweeted this morning, while also cautioning that “we’re not at the finish line”.