Inflation
Sustained increase in general price level.
Real World
UK inflation hit 11.1% in October 2022, driven by soaring energy prices after the Russia-Ukraine war — retailers like Tesco had to absorb or pass on higher costs while consumers cut discretionary spending.
Exam Focus
Always distinguish between causes of inflation and its effects on businesses; examiners penalise responses that conflate the two.
How well did you know this?