The Know Daily - Wednesday 17 January 2024

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A community group in the Devonshire village of Marldon has gone seriously green by launching its own composting scheme. The group secured £9,000 in funding from the local council, which said the initiative would “bring people together” as well as help tackle green waste in the area.

📈 Inflation on the up 

UK inflation - which measures the rate at which prices are increasing - has risen unexpectedly for the first time in nearly a year, the Office for National Statistics (ONS) revealed this morning. 

Tell me more.
In December, the inflation rate in the UK rose to 4%, up from 3.9% in November. The news has surprised economists, who had predicted that it would drop to 3.8% or 3.7%.

Why has it risen?
It’s mainly down to cigarettes and alcohol, according to the ONS. The two were the “main drivers” behind the increase, said Sky News, “with prices rising by 12.9.% in the year to December, compared with 10.2% in November”.

The BBC’s chief economics correspondent Dharshini David also cited “more expensive theatre tickets” as a factor.

What will be the impact of all this?
The news has “dampen[ed] hopes that the Bank of England will lower interest rates in a matter of months”, said The Times. Interest rates are currently at 5.25% - a 15-year high. 

Phone bills may also increase, added the paper, “even if you are still within a contract”. Although mid-contract hikes are being banned by Ofcom, this will not come into effect before April - the month when most mobile phone price increases take place.

Anything else I should know?
While today’s news is unexpected, “it could be worse”, said the BBC. Current inflation is still far lower than it has been in recent years - in October 2022, it was as high as 11.1%. 

When speaking to the BBC’s Today programme this morning, the ONS’ chief economist pointed out that the UK “is not alone in seeing the rate of price rises go up in December”, with similar upticks experienced in France, Germany and the US.