Inflation (Global)
Worldwide general price increase.
Formula
Inflation Rate = ((CPI Current Year − CPI Previous Year) ÷ CPI Previous Year) × 100
Real World
In 2022, global inflation surged above 8% in many economies due to post-COVID supply chain disruptions and the energy price shock from Russia's invasion of Ukraine, forcing central banks worldwide to raise interest rates sharply.
Exam Focus
Always distinguish demand-pull from cost-push inflation in your answer — examiners deduct marks for treating all inflation as identical.
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