Inflation and Deflation (Edexcel A-Level Economics A): Flashcards
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Definition of inflation
Definition of inflation
Sustained rise in general price level
UK inflation target rate
UK inflation target rate
2% per annum
UK govt's preferred inflation measure (since 2004)
UK govt's preferred inflation measure (since 2004)
CPI (Consumer Price Index)
Base year index value
Base year index value
100
CPI measures ___, inflation measures ___
CPI measures ___, inflation measures ___
Price level, rate of change of prices
CPIH includes (vs CPI)
CPIH includes (vs CPI)
Owner-occupier housing costs & council tax
Demand-pull inflation
Demand-pull inflation
Inflation from increased demand pressures
Cost-push inflation
Cost-push inflation
Inflation from rising production costs
Deflation definition
Deflation definition
Fall in average price level (negative inflation)
Disinflation vs deflation
Disinflation vs deflation
Falling inflation rate vs negative inflation