Inflation Rate
Percentage increase in price level year-over-year.
Formula
Inflation Rate = ((CPI_current − CPI_previous) ÷ CPI_previous) × 100
Real World
When the UK inflation rate rose to 9% in 2022, Tesco faced pressure to absorb or pass on higher costs; the company had to balance keeping prices competitive with protecting profit margins.
Exam Focus
Quote a specific inflation rate figure in context answers to show application; examiners reward precise data use over vague references.
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