U.K. Inflation at Highest in Almost Two Years

The video discusses the current state of inflation in the UK and US, highlighting the impact of Brexit on UK inflation and consumer demand. It compares inflation measures like CPI and PCE in both countries, noting subdued wage momentum. The discussion also covers potential global economic concerns, drawing parallels with Japan's economic situation, and explores the possibility of inflation rising in the US due to housing market factors.

What is the Bank of England's approach to short-term inflation driven by sterling?

• They immediately adjust interest rates.

• They ignore it completely.

• They focus on the long-term effects.

• They increase consumer demand.

How does the UK inflation measure differ from the US?

• The UK has a higher inflation target.

• The UK uses a different currency.

• The US focuses more on core PCE.

• The US does not have an inflation target.

What is a consequence of Brexit on UK wages?

• Wages are likely to remain subdued.

• Wages will decrease significantly.

• Wages are expected to rise rapidly.

• Wages will match US levels.

What factor might drive US inflation higher in the next year?

• Decreasing rental vacancy rates.

• Increasing global oil prices.

• Decreasing consumer spending.

• Rising unemployment rates.

What is the relationship between inflation and wage demands in the US?

• Higher inflation leads to higher wage demands.

• Wage demands decrease inflation.

• Inflation has no effect on wage demands.

• Higher inflation leads to lower wage demands.