Inflation (Global)
Worldwide general price increase.
Formula
Inflation Rate = ((CPI Current Year − CPI Base Year) / CPI Base Year) × 100
Real World
Following the COVID-19 pandemic, global supply chain disruptions and energy price surges pushed UK inflation above 11% in 2022, forcing businesses like Next to raise prices while consumers cut spending.
Exam Focus
Distinguish cost-push from demand-pull inflation in your answer — examiners penalise conflating the two causes.
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