Inflation Flashcards
(6 cards)
1
Q
What is inflation
A
The increase in the general price level
2
Q
What is deflation
A
Fall in the general price level
3
Q
What is disinflation
A
Falling inflation rate - prices are decreasing at a slower rate than
4
Q
What is hyperinflation
A
A very high and accelerating inflation rate. Usually inflation over 500%
5
Q
What is the target inflation rate in the UK
A
2%
6
Q
How can you measure inflation using the CPI (consumer price index)
A
Household expenditure survey - measures what
