UK Inflation Surges to New 40-Year High in June

Consumer prices in the UK have risen by 9.4% over the past year, increasing pressure on the Bank of England (BOE) to consider a significant rate hike. Despite this, market pricing remains unchanged as a 50 basis point hike is already anticipated for August. The inflation is largely driven by rising food and fuel costs, with a broader impact suggesting persistent inflation. The peak of inflation is expected in the fall, coinciding with rising energy bills. The BOE has indicated a willingness to act more forcefully, with recent data supporting the likelihood of a 50 basis point increase.

What percentage did consumer prices rise from the previous year, prompting pressure on the Bank of England?

• 9.4%

• 10.1%

• 7.5%

• 8.2%

What is one of the main drivers of the current inflation according to the transcript?

• Healthcare expenses

• Food and fuel

• Real estate prices

• Technology costs

When is the peak of inflation expected to occur in the UK?

• Winter

• Fall

• Summer

• Spring

What action is the Bank of England considering in response to high inflation expectations?

• Reducing interest rates

• Implementing a 50 basis point hike

• Increasing taxes

• Decreasing government spending

What recent data supports the Bank of England's potential decision to increase rates?

• Housing market trends

• Job data and firm inflation expectations

• Retail sales figures

• Tourism statistics