Latest inflation data announced at 7am - here's why it matters to you | Money

We will be getting the latest inflation data at 7am, but before we do here's a quick reminder of what it is and why you should care about it... 

Basically, inflation is the rate at which prices are rising.

It directly affects our overall cost of living and, if wages are not increasing at the same pace, the value of your money decreases.

It is impacted by lots of different factors including global conflicts - with the Ukraine war having a huge impact on food and gas prices. Some argue Brexit has also had a negative impact.

In the UK, inflation is measured monthly - comparing how much prices are going up with the same time a year previous.

The headline inflation figure, which you'll see a lot in the news, measures price rises across a range of products that we need in our daily lives.

The most commonly used inflation index is the Consumer Price Index - and the target for many Western governments is 2%.

One thing to note is that falling inflation doesn't mean prices are coming down - just that they're rising less quickly. You'd need a minus figure, or negative inflation, to see prices fall overall.

Why does inflation affect interest rates?

The Bank of England raises interest rates to try to slow spending and encourage saving - when this happens, prices/inflation tend to come down.

When inflation falls, interest rates tend to.

Potential winners and losers from high inflation

Overall, a high and volatile rate of inflation is widely considered to be damaging for the economy - but there are some people who could benefit from it.

Workers with wage bargaining power (perhaps those who belong to strong trade unions) can come off better as they can protect their incomes by bidding for higher wages.

Producers could end up benefitting if their prices rise quicker than their costs.

People with stocks or property could also see the value of their assets rise if there is a sustained period of price inflation.

However, retired people on fixed incomes are likely to be worse off as inflation cuts the real value of their pensions and other savings.

The poorest members of the population will also feel the pinch more as costs of borrowing, food and domestic utilities are high.

For this week's guide, Anna Bowes, savings expert from The Private Office, looks at cash ISAs and reminds us all of an important deadline... 

Millions of us have been squirrelling away savings into a cash ISA ahead of the chancellor's spring statement today. 

Rumours that Rachel Reeves was going to cut the tax-free cash ISA limit - which she has since confirmed will not be happening today - pushed people to make the most of the £20,000 cap. 

And, if you haven't done the same, there is still time to do so. 

"If you haven't maxed out your ISA allowance yet, now's the time to act," Bowes says. 

"There are less than two weeks left to use this year's allowance, and once it's gone, it's gone. And why not get ahead by using next year's allowance as soon as possible? The sooner you do, the more tax-free interest you can earn," she adds. 

She explains that millions of people are being dragged into paying more tax due to frozen personal tax allowances and higher interest rates - so it's good news that the cash ISA limit isn't about to change. 

Back in March 2021, Rishi Sunak, the chancellor at the time, announced that many personal tax allowances would be frozen until the 2025/26 tax year.

Bowes says: "That freeze was later extended to 2027/28, meaning even more people have found themselves paying income tax for the first time, or tax at a higher level." 

The personal allowance, which is the amount you can earn before paying income tax, has been stuck at £12,570 since April 2021. 

The thresholds for the basic, higher and additional rate taxes have also been frozen.

According to the Office for Budget Responsibility, by 2028/29, these frozen thresholds will mean nearly four million more people paying income tax, three million more moving into the higher rate bracket, and 400,000 more pushed into the additional rate. This process is known as fiscal drag - and it's a term you're likely to hear again today after the spring statement.

"Savers are feeling the impact too. The Personal Savings Allowance (PSA) has been frozen since it was introduced in 2016, meaning that as savings interest rates rise, more and more people are fully utilising their PSA with smaller deposits," Bowes adds. 

"While basic-rate taxpayers can earn £1,000 of interest tax-free, higher-rate taxpayers only get £500, and additional-rate taxpayers get nothing. With higher interest rates over recent years and more people facing the 40% and 45% tax rates, many savers are now facing unexpected tax bills on their savings.

"This is why ISAs remain such a valuable tool. Any interest earned within an ISA stays completely tax-free, regardless of the amount, making them a great way to shelter your savings from the taxman." 

Here are the top easy access cash ISAs on the market... 

And the top paying fixed term cash ISAs...

You can be sure of Shell, as it was put in the old advertising slogan, the veracity of which was borne out today.

Ahead of its capital markets day, a long presentation to investors in New York during which it outlined its strategy for the next five years, the oil major unveiled new financial targets that had investors positively cooing.

Shell plans to raise distributions to shareholders from 30-40% of "cash flow from operations" to between 40-50%, and will continue to prioritise share buybacks, "while maintaining a 4% per annum progressive dividend policy".

These are huge commitments and are important not just for Shell but for just about everyone in the UK. The old rule of thumb used to be that Shell accounted for about £1 in every £6 received in dividends by UK pension funds.

While that may not necessarily be the case any more, given the disinvestment from the UK by such funds over the last decade, Shell remains a hugely important contributor to the retirement savings of Britons and, indeed, savers around the world.

As interesting is how Shell intends to fund all this largesse and, in a few words, this can be summed up as doing more with less.

The company has jacked up its cost-saving target - it was previously looking to reduce costs by between $2-3bn by the end of this year, and this has now been raised to a cumulative $5-7bn by the end of 2028.

Shell is also trimming its capital expenditure (capex). The company, which last year invested $21bn and which at its last capital markets day in June 2023 set out an annual capex target of $22-25bn, said on Tuesday this would fall to $20bn-$22bn between this year and 2028.

All of this is big, dial-shifting stuff. Analysts had not expected Shell's strategy to change significantly from its last capital markets day and this helps explain why the shares rose by almost 2% this morning to hit their highest level since August last year.

Yesterday, we brought you the extremely troubling news that the average cost of a pint in the UK was about to rise to £5.

It was a story that captured the attention of many of readers and some decided to share their thoughts in the comments section. 

Here's what they had to say... 

When are breweries going to get into the heads that they are the reason pubs are closing all over the country with their unjustified price rises? £5 a pint is absolutely obscene.

Barry

Boycott buying a pint, then business will have to reconsider. I will not be going to the pub anymore. Government clearly controlling the populous by raising prices of everything so that people's income becomes a deficit to their bills. If people are static, then govt has control.

Paul R

When I was 18, Friday night and the bars would be 4 deep to get served. Now it is far too dear to buy a pint. Two weeks ago I went to the excellent Thornbridge brewery. A pint of Jaipur from the bar was £5. A bottle of Jaipur 500ml £2.50 to take home. Why the massive difference? 

Tashyboy

Price of a pint £5 one of the pubs in my village on the Wirral is now charging £6.90 for a pint - £2 more than the other pubs. Outrageous behaviour from a chain pub but people still pay it. Even the men's club in the village has had to put the price up to £4.60

Maxwell silverhammer

Bought four pints of lager from the local supermarket for £7. Paying over £5 a pint will just make me avoid pubs more sadly.

Irregular Torquay drinker

Some were shocked - at how cheap £5 a pint sounded... 

Really? The price of a pint is already over £7.50 in London!

Mark k

If the cost of a pint is due to go up by 21p to over £5, then why have many pubs already been charging in excess of £5? My local charges £5.20 and has done for months!

Robin Cole

£5 a pint? More like £6 a pint around here!

Sam

 Everything Rachel Reeves has been doing has been about achieving one thing: kickstarting growth in the UK. 

But reports this morning suggest that in her Spring Statement tomorrow, the chancellor could announce that the growth forecast for this year has halved. 

In a lecture made at Leicester University yesterday, the Bank of England governor said he thought that artificial intelligence could hold the key to solving Britain's growth woes. 

"AI appears to me to have that potential, and so it could over time lift growth rates and per capita national income," Andrew Bailey said. 

"We must facilitate the growth of AI as the most likely general purpose technology which can move the needle on growth in the economy."

He also suggested that investing in the human skills required to accelerate AI was also needed. 

We've had more evidence today that Tesla is struggling, as the latest data showed its market share had halved in Europe (see 6.33 post), but is it just as simple as consumers turning on Elon Musk?

An investor recently told Sky News that Musk should resign to protect the company...

Our business presenter Ian King has been looking into all the possible reasons Tesla's share price continues to plummet.

He found: 

• Musk's provocative politics, including wielding a chainsaw and making a gesture on stage that some interpreted as a Nazi salute, have put buyers off - but not to the extent it may appear;
• Musk may instead be proving too distracted by commitments to the government agency he runs - known as DOGE - and his other companies like SpaceX and X, spooking investor confidence;
• Tesla share prices were arguably overpriced to begin with;
• Business is facing increased competition, particularly from China.

You can read his deep dive into the issues facing the electric car company here... 

Millwall has become the first British football club to launch its own mobile network. 

Millwall Mobile will offer customers discounts and exclusive reward offers, with SIM plans starting at £10 a month.

For £20 a month, fans can get unlimited 5G data, unlimited texts and calls and 20GB of EU roaming. 

The network will be powered by Three, which is one of the fastest 5G networks in the country. 

Millwall's chief commercial officer, Luke Wilson, said: "We're delighted to be the first club in the country to bring this model to the UK and to our fans. 

He said it will offer customers "great value and flexible plans that reward their loyalty via the club benefits on offer – but also access to the best network in London."

You can read all the terms and conditions here. 

Waitrose has placed a two bar per customer limit on Lindt's new chocolate. 

The supermarket has introduced the rule for the extremely popular Dubai style chocolate in an attempt to regulate stock levels. 

Steve Dresser, chief executive of consultancy firm Grocery Insight, snapped a photo of a sign at one store that read: "No more than two bars per person please… because we want everyone to have the chance to enjoy our delicious chocolate." 

A Waitrose spokesperson told Money: "Due to the incredible popularity of this product, we want to make sure that as many customers as possible have the opportunity to try it." 

Lindt launched the bar in December after Dubai chocolate (chocolate with pistachio and knafeh inside) went viral on TikTok. 

By Mark Kleinman, city editor

The Coca-Cola Company is in talks to return to the top tier of the Premier League's commercial partners after a three-year hiatus.

Sky News understands that the US-based soft drinks giant is in advanced talks to become an official partner of English football's top flight, following a previous deal which expired in 2022.

Sources said a multimillion pound agreement could be ratified at a Premier League shareholder meeting on Thursday.

Millions of people's DNA records are up for sale after a major home-testing company declared bankruptcy. 

23andMe saw its chief executive step down and more than 15 million people's data put up for sale after struggling with weak demand for its ancestry testing kits and a 2023 data breach that damaged its reputation.

Announcing the move, the company said that data privacy would be an "important consideration" but that the goal was to "maximise the value of its assets". 

So what does that mean for your data? 

Cybersecurity expert Ross Brewer from security firm Graylog told Money the company's collapse could see customer data ending up on the dark web, placing them at risk of serious financial harm. 

"Access to users' family tree information can allow human scammers and bots at scam farms and call centres to send more personalised messages, or more convincing fraudulent emails designed to persuade people to reveal sensitive information or install malware on their devices," he explained.

"For example, through accessing personal names and genetic details, scammers could more easily convince a target that they are a family member, or know them or their family."

Individuals' password information may also be compromised, leading to an increased risk of accounts being taken over, and further breaches taking place, he said.

"If cybercriminals have managed to compromise your passwords at 23andMe, they can potentially also access other accounts with the same password, such as utilities and banking, to cause more damage. They may even be able to access corporate accounts with the same password, causing a business risk."

This DNA information is also highly attractive to insurance companies, who could step in and buy these assets to collect family data and improve risk profiling to then change an individual's premium and cover accordingly. 

What can you do to protect yourself? 

"UK customers should employ good password hygiene," Brewer said, which means changing any that are the same as your 23andMe account immediately. 

He also suggested using two factor authentication where possible. 

"Be cautious and suspicious of activity that may result from a threat actor trying to impersonate you by stealing your identity, especially accounts related to health insurance, banking or other sensitive areas," he added. 

Brewer said that it was not just private individuals but companies that needed to "fortify their defences" to thwart potential attacks within their systems. 

"This requires that organisations focus on basic cybersecurity hygiene best practices and ensure they are monitoring their normal user activity so they can look for abnormalities as impersonators leverage their stolen data."