INFLATION INCREASES TO FOUR PER CENT 

The annual rate of inflation rose to four per cent in the year to December, according to the Office for National Statistics (ONS). A fall to 3.8 per cent from 3.9 per cent had been expected by economists polled by Reuters (Sky News). 

However, the full effects of increased shipping costs due to Red Sea diversions will not have been captured by the data, as shipping prices had the steepest rises towards the end of the month. 

GOVERNMENT REVEALS PLAN TO BOOST SECURITY OF IMPORTS 

A plan to boost the security of critical imports has been revealed by the government to help industries against an increasingly unstable geopolitical backdrop. The Department for Business and Trade said it has been working with key industry groups for several weeks to identify products the country could not do without and should be "safeguarded" (Sky News). 

However, ministers have warned business leaders there are limits to what the UK government can do to protect critical global supply chains (Financial Times). 

NEWS IN BRIEF

London and other cities across the UK are underprepared for the “disastrous consequences” of climate change, according to the London Climate Resilience Review (Financial Times). 

Banks and financial services firms are investing in new technology to combat rising levels of fraud as artificial intelligence unlocks new ways to create scams, according to regtech firm Complyadvantage (City AM). 

The European Central Bank is likely to cut interest rates in the summer, according to President Christine Lagarde (Bloomberg). 

Analysis of the world’s largest companies shows their average mark-ups have increased 50 per cent in the five years up to 2022, according to research from the Balanced Economy Project, LobbyControl and the Centre for Research on Multinational Corporations (The Times).