Understanding the UK's Rising Costs

What was the inflation rate in the UK in 2022, and how did it compare to wage growth?

• Inflation was over 11%, while wages grew by a similar rate.

• Inflation was over 11%, but wages grew by only a fraction.

• Inflation was under 5%, and wages grew significantly.

• Inflation and wage growth were both stable at around 3%.

What is a significant factor contributing to the UK's housing crisis?

• Low demand for housing

• Shortage of affordable homes and rising mortgage rates

• Decreasing mortgage rates

• Excessive building of affordable homes

What has caused energy bills in the UK to double in recent years?

• Global energy shortages and reliance on imported fuel

• Increased renewable energy sources

• Abundant domestic energy production

• Decreased global demand for energy

What was the peak food inflation rate in the UK in 2023?

• 5.1%

• 25.1%

• 10.1%

• 19.1%

How has Brexit affected UK businesses?

• Reduced import costs and increased access to EU workers

• Higher import costs, customs delays, and staff shortages

• Improved trade relations with the EU

• No significant impact on businesses

What is fiscal drag, and how does it affect taxpayers?

• A decrease in tax rates leading to lower tax payments

• A temporary tax relief for low-income earners

• An increase in tax thresholds reducing tax payments

• Frozen tax thresholds pushing more people into higher tax bands

What impact does a weaker pound have on the UK economy?

• It has no significant impact on the economy

• It stabilizes the economy and reduces inflation

• It increases the cost of imports and makes international travel more expensive

• It makes imports cheaper and boosts tourism

How have rising interest rates affected borrowing in the UK?

• They have decreased the cost of borrowing for small businesses

• They have increased the cost of borrowing for mortgages, loans, and credit cards

• They have had no impact on borrowing costs

• They have made borrowing cheaper and more accessible

What is shrinkflation, and how does it affect consumers?

• Increased product sizes with no change in price

• Larger product sizes at lower prices

• No change in product sizes or prices

• Smaller product sizes at the same or higher prices

What are some hidden costs that contribute to the feeling of increased expenses in the UK?

• Reduction in subscription fees and service charges

• Elimination of tipping culture and service charges

• Decreased service charges and subscription fees

• Increased service charges, tipping culture, and subscription fees