The Brief (23/01/22)

We are back with the brief being a bi-weekly news roundup after have the Christmas break away from writing.

Let's kick off this brief with UK inflation. Inflation has been on the rise in the UK and in December reached a 30 year high of 5.4%, exceeding forecasts which expected inflation to be 5.2%. The last time Inflation was this high was back in March of 1992. Cost of living this year has been on the rise at a faster rate than wages, which rose at an annual rate of 3.8% in the months August-November. Much of this increase in cost of living is due to this winter’s high energy prices increasing costs for transport and heating.

Source: ONS

Tensions between Russia and Ukraine are still on the rise. Russia has continued to move troops, tanks, and ships closer to Ukraine as peace talks have failed. Talks between the US and Russia have also failed to produce an outcome both parties are happy with. The UK has warned that Russia is planning on installing a pro-Moscow MP to lead Ukraine. Germany has received criticism from Ukraine as they have refused to export weapons to Ukraine, and as of 23rd of January, the German Navy Chief has resigned after comments on the situation, stating that “Putin deserves respect”.

The EU, along with the US have now vowed to impose sanctions on Russia in the case of an invasion on Ukraine. Since 2014, the EU has imposed sanctions against Russia in response to the annexation of Crimea, and these include sanctions against the finance, energy, defence and dual-use goods sectors of the Russian economy. Russia is also banned from lending from the European Investment Bank and the European Bank for Reconstruction and Development.

Source: BBC

As Covid-19 cases continue to fall, restrictions across the UK are being loosened. From the 27th of January you will not be required to wear a face covering and you will no longer need to show an NHS covid pass to enter venues and events by law. Earlier in January other measures such as wearing face coverings in secondary school and being advised to work from home if possible were also scrapped. These changes come after an all time high of reported cases in the UK at the start of January, with a 7-day average of 147,195 cases on the 6th of January. Other rule changes include a reduction in self isolation after a positive test from 10 to 7 days and easing of restrictions on care home visits.

On the 14th of January, a volcano erupted on an uninhabited island in Tonga, a pacific island nation. This eruption caused Tsunamis which affected other countries including Fiji, American Samoa, Vanuatu and even some farther afield countries such as Peru, where a wave resulting from the eruption killed 2 people. At least five people have died as a result of the tsunami and many more are still missing. The economic damage has not yet been estimated. Foreign aid has come from New Zealand in the form of money, fresh drinking water and desalinization equipment.

Turkey is in the middle of an economic crisis, with Turkish lira reaching record lows since the revaluation of the currency in 2005, with the currency losing roughly 40% of its value against USD. Inflation at the start of the year reached 36%, greatly increasing the cost of living in Turkey, with local officials in Istanbul stating the cost of living has increase by 50%. Bitcoin has reached a 6-month low amid a crash in the cryptocurrency market, yet many Turks are flocking to crypto in search for a more stable currency.