UK Latest: Inflation Higher Than Expected in May

The video discusses the unexpected persistence of high inflation rates in the UK, with core inflation rising and services inflation increasing. The Bank of England is closely monitoring these changes, which are driven by rising prices in air travel, cultural goods, and second-hand cars. The possibility of a larger interest rate hike is considered, with potential economic repercussions. Historical comparisons are made, noting that the last time core CPI was this high, interest rates reached 15%. The impact on government policy is significant, with mortgage rates becoming a major concern. The Chancellor plans to meet with lenders to address potential repossessions, while avoiding actions that could undermine the Bank of England's efforts to control inflation. The cost of living crisis is highlighted, with political implications for the government.

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How is the opposition party responding to the current economic situation?