Inflation Flashcards
1
Q
what is inflation?
A
An increase in the general level of prices
2
Q
How do you measure inflation?
A
ONS purchase a basket of approx. 700 goods monthly and compare previous costs. Annual rate= inflation
the basket is weighted
3
Q
what is CPI
A
Consumer Price Index
4
Q
what is RPI
A
Retail Price Index
5
Q
what are the causes of inflation?
A
Cost Push and Demand Pull
