UK Inflation Quiz

What was the percentage increase in UK prices in the 12 months to October?

• 2.3%

• 3.5%

• 1.8%

• 4.0%

Which of the following is included in the UK's inflation basket?

• Sofa bed

• Rotisserie chicken

• Gluten-free bread

• Bakeware

What is the inflation rate target set by the Bank of England?

• 1.5%

• 2.0%

• 2.5%

• 3.0%

How does increasing interest rates affect borrowing?

• Makes borrowing cheaper

• Makes borrowing more expensive

• Has no effect on borrowing

• Encourages more borrowing

What might businesses do when borrowing costs increase?

• Hire more staff

• Borrow more money

• Cut staff and reduce investment

• Expand operations

What was the public expectation regarding the interest rate change in November 2024?

• It was unexpected

• It was widely expected

• It was a surprise

• It was controversial

What was the interest rate drop from August?

• 5.25% to 5%

• 5.5% to 5.25%

• 5% to 4.75%

• 5.5% to 5%

What does core inflation exclude?

• Food and energy prices

• Housing and transportation costs

• Healthcare and education expenses

• Clothing and entertainment costs

What did Andrew Bailey say about cutting borrowing costs?

• It could be "a bit more aggressive"

• It should be "more cautious"

• It must be "immediate and significant"

• It needs to be "delayed"

Despite the slowdown, how are wages rising compared to inflation?

• Faster than inflation

• Slower than inflation

• At the same rate as inflation

• Not rising at all