(1) You know nothing about the continuity of the inverse function. For example the function $\displaystyle f(x)= \left\{\begin{matrix}
x &, &x \in [0, 1] \\
& & \\
x-1& , & x \in (2, 3)
\end{matrix}\right.$ is continuous whereas its inverse defined as
$$f^{-1}(x)= \left\{\begin{matrix}
x &, &x \in (0, 1] \\
x+1&, & x \in (1, 2]
\end{matrix}\right.$$
is not continuous. Of course if $f$ is continuous in a compact interval , that is an interval $[a, b]$ then , yes, the inverse function is also continuous. (It is a theorem)
Update:
In order to answer the initial question , conditions that may impliy contiunity are:
1. A function $f$ is strictly monotonic and continuous on an interval $[a, b]$ then the inverse is continuous. This also holds if $[a, b]$ is replaced with a random $I \subseteq \mathbb{R}$.
2. A function $f$ is defined on an open interval $I$ and there it is continuous and bijective , then the inverse is also continuous.
(2) Not necessarily. It holds that:
$$\left ( f^{-1}(y) \right )' = \frac{1}{f'(x)}$$
Ok, $f$ is differentiable but no-one can guarantee you that $f'$ is continuous. Therefore you cannot extract such a result. See my counter example above. (of course the theorem you proved holds under the assumption that $f'(x) \neq 0$.)
In order to have continuity of inverse you need continuity of the derivative.
I apologize. Although I read the question I wrote a wrong answer for the first part. Anyway, I leave the answer as it. If needed I can always update it.
– Tolaso Jul 09 '15 at 07:18