7. Inflation 30

Question 0

Cost-push inflation

Answer 0

Inflation caused by increases in the costs of production in the economy

Question 1

Consumer price index - CPI

Answer 1

A measure of the price level used across the EU and used by the BoE to measure inflation against its target

Question 2

Creeping inflation

Answer 2

Small rises in the price level over a long period of time

Question 3

Deflation

Answer 3

A fall in the price level

Question 4

Demand-pull inflation

Answer 4

Inflation which is caused by excess demand in the economy

Question 5

Headline rate of inflation

Answer 5

The increase in consumer prices including all housing costs. This is the RPI in the UK.

Question 6

Hyper-Inflation

Answer 6

Large increases in the price level.

Question 7

Indexation

Answer 7

Adjusting the value of economic variables such as wages or the rate of interest in line with inflation

Question 8

Inflation

Answer 8

A general rise in prices

Question 9

Price level

Answer 9

The average price of goods and services in the economy

Question 10

Retail Price Index - RPI

Answer 10

A measure of the price level which has been calculated in the UK for over 60 years and is used in a variety of contexts such as by the government to index welfare benefits.

Question 11

Underlying rate of inflation

Answer 11

The RPIX, The increase i consumer prices excluding changes in mortgages costs, or the RPIY, which also excludes indirect taxes.