U.K. Inflation Unexpectedly Accelerated in January

The transcript discusses the unexpected rise in inflation, driven by clothing and footwear sales, and its impact on the market and the Bank of England's monetary policy. The Bank faces pressure to increase interest rates aggressively, with potential public backlash due to rising living costs. Andrew Bailey's comments on pay rises and the economic impact on middle-income households are also highlighted.

What was one of the main drivers of the recent inflation increase?

• Increased discounts on clothing

• Higher energy prices

• Rising secondhand car prices

• Decreased restaurant sales

What unprecedented action might the Bank of England consider in response to inflation?

• Maintaining current interest rates

• Introducing new monetary policies

• Increasing interest rates by 50 basis points

• Reducing interest rates by 50 basis points

Why did Andrew Bailey face criticism regarding his comments on pay rises?

• He recommended cutting government spending

• He proposed reducing pensions linked to inflation

• He advised workers not to ask for pay rises

• He suggested companies should increase their margins

What is the expected time lag for monetary policy to impact the economy?

• 6 to 12 months

• 1 to 2 years

• 3 to 6 months

• 2 to 3 years

Which group is most affected by both energy bill and interest rate rises?

• Businesses

• Middle-income households

• Low-income households

• High-income households