Cost of living continuing to rise in UK

The video discusses the impact of inflation on the knitwear business, highlighting how the devaluation of the pound has increased business costs. It explains the pressure on wages due to rising living expenses and the potential economic challenges if wages do not keep pace with inflation. The video also examines consumer spending trends, noting a slowdown in non-essential purchases. It concludes with a discussion on future economic predictions, emphasizing the uncertainty surrounding Brexit and its potential impact on inflation and the economy.

What is one of the main challenges faced by businesses due to the pound's devaluation?

• Lower quality of imported materials

• Higher costs of doing business

• Increased competition from local markets

• Decreased demand for luxury goods

What happens when wage increases are slower than inflation?

• Wages automatically adjust to inflation

• Inflation rates drop significantly

• Consumer purchasing power decreases

• Consumer purchasing power increases

How has consumer spending contributed to the UK economy in recent years?

• By boosting economic growth

• By increasing import tariffs

• By stabilizing the currency value

• By reducing inflation rates

What is a current trend in retail sales according to the transcript?

• Stable spending across all categories

• Increase in spending on imported goods

• Decrease in spending on non-essential items

• Increase in luxury goods spending

What factor makes it difficult to predict future inflation trends?

• The stability of the pound

• The terms of Brexit

• The rise in global oil prices

• The increase in local production