Inflation is a measure of how well an economy is performing, with low and stable inflation indicating a well-performing economy. Inflation is defined as a persistent rise in the general price level. While creeping inflation of around 2% can benefit an economy, hyperinflation is bad and can cause political instability. In the UK, inflation is measured using the Consumer Price Index (CPI), which tracks the price of a basket of goods and services and is revised every four years to account for changing consumer trends.

1. Inflation Basics

2. Inflation
• This is a measure oh how an economy is
performing
• A well performing economy should have
low and stable rate of inflation

3. Definition
• Inflation is a persistent rise in the general
price level.
• Creeping Inflation is a level of inflation
which is low such as 2% which can bring
benefits to the economy
• Hyperinflation is bad for an economy can
cases Political Instability

4. Measuring Inflation
• In the UK Inflation is measured using CPI
known as the Consumer Price Index
• It is a measure of the price of goods and
services
• The goods and services which are
assessed are revised every four or so
years to allow for changing consumer
trends