BOE's Bailey Says U.K. Growth Expected to 'Slow Sharply'

The video discusses the rise in inflation due to higher household energy prices and the delayed impact of wholesale price changes on retail prices. It highlights the expected slowdown in UK GDP growth and the significant contraction in real household disposable income. The video projects that inflation will peak later in the UK compared to other economies and will eventually fall below the target. However, risks remain due to potential persistent wage growth and domestic price setting.

What is the expected trend of CPI inflation in the next two years?

What are the risks associated with the inflation projection mentioned in the text?