UK Latest: Inflation Higher Than Expected in May

UK Latest: Inflation Higher Than Expected in May

Assessment

Interactive Video

Business, Social Studies

University

Hard

Created by

Quizizz Content

FREE Resource

The video discusses the unexpected persistence of high inflation rates in the UK, with core inflation rising and services inflation increasing. The Bank of England is closely monitoring these changes, which are driven by rising prices in air travel, cultural goods, and second-hand cars. The possibility of a larger interest rate hike is considered, with potential economic repercussions. Historical comparisons are made, noting that the last time core CPI was this high, interest rates reached 15%. The impact on government policy is significant, with mortgage rates becoming a major concern. The Chancellor plans to meet with lenders to address potential repossessions, while avoiding actions that could undermine the Bank of England's efforts to control inflation. The cost of living crisis is highlighted, with political implications for the government.

Read more

2 questions

Show all answers

1.

OPEN ENDED QUESTION

3 mins • 1 pt

What impact does the rising cost of remortgaging have on individuals according to the Resolution Foundation?

Evaluate responses using AI:

OFF

2.

OPEN ENDED QUESTION

3 mins • 1 pt

How is the opposition party responding to the current economic situation?

Evaluate responses using AI:

OFF