Inflation expected to rise further this year

The video discusses the steady rise of inflation, driven mainly by fuel prices, affecting both motorists and haulage companies. It highlights the impact on a confectionery business that imports most of its products from Europe, leading to increased costs and reduced workforce. The video also covers upcoming changes in inflation measurement, which will include housing costs and Council tax, potentially raising the inflation rate to the Bank of England's target. Economists predict further inflation increases as more costs are passed to consumers.

What was the main factor contributing to the rise in inflation in January?

• Rising housing costs

• Higher fuel prices

• Increased food prices

• Increased import taxes

How has the confectionery company been affected by the euro exchange rate?

• It has started importing more from the UK.

• It has reduced its workforce by more than half.

• It has expanded its business operations.

• It has increased its product prices by 5%.

What percentage of the confectionery company's products are imported from Europe?

• 90%

• 100%

• 75%

• 50%

What new components will be included in the inflation measure next month?

• Housing and council tax costs

• Healthcare and education costs

• Fuel and food costs

• Import and export costs

Why is it important to include housing costs in the inflation measure?

• To decrease the cost of living

• To increase consumer spending

• To provide a clearer picture of price increases

• To reduce the overall inflation rate