Part 4/12:
Currently, the UK's headline inflation rate has edged closer to the target; however, underlying core inflation remains stubbornly high. Concerns are rising about further increases in gas prices and other living costs, projecting more inflation later this year. This type of inflation, driven by increased costs rather than economic growth, poses a significant threat to living standards, particularly for lower-income households that allocate a disproportionately high share of their income to energy.