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What Is Inflation?

Article describing what inflation is and how it impacts people

Date : 20/02/2023

Author Information

Jamal

Uploaded by : Jamal
Uploaded on : 20/02/2023
Subject : Economics

One of the key topics you will study in Economics, in particular in macroeconomics will be the concept of Inflation. This is something which we hear about in the news everyday and increasingly is becoming front page news due to the recent cost of living crisis with inflation reaching record highs. So what is inflation? In simple terms its when everyday goods are becoming more expensive resulting in the purchasing power of money to decline. For example if you had £10 10 years ago and went to the corner shop you would be able to walk out with much more than if you took £10 to the shop now, this has been cause by inflation causing things like drinks, crisps and chocolate ( eg Freddo) to become more expensive over time. One of the key causes of inflation is when firms costs are rising, for example raw materials, they then pass this cost on to consumers resulting in...you guessed it, Inflation!

This resource was uploaded by: Jamal