Inflation Flashcards
(4 cards)
1
Q
What is CPI &RPI
A
Consumer price index
Retail price index
2
Q
Calculating inflation
A
Base index + price change = price index
Price index x weighting=
Add up all weight and divide by (price X weight)
E.g 10408
Inflation = 4.08%
3
Q
If inflation is high
A
Not good for business confidence
Higher interest rates
Exports less price competitive
4
Q
What is inflation
A
A general increase in the national prices of goods
