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Inflation in the UK Economy
Inflation
Recent Trends in UK Inflation
This presentation considers the recent record on inflation in theUK economy. Why has inflation remained so low? What are theeconomic consequences of inflation? And what economic policiesare most effective in keeping inflation in check?
 
Inflation in the UK Economy
Inflation – the fundamentals
Inflation is a sustained increase in the general level of prices (as measured by a consumer price index)Inflation rate is the annual % change in pricesA rise in the price level means a fall in the internalpurchasing power / value of moneyThe rate of inflation varies over time
1950s and 1960s – low stable inflation
1970s and 1980s – UK inflation was volatile
1990s – much lower average inflation
2000 – the lowest rate of inflation for over twenty years
 
Inflation in the UK Economy
19811983198519871989199119931995199719992001Quarterly data02468101214
   A  n  n  u  a   l   %   c   h  a  n  g  e   i  n  r  e   t  a   i   l  p  r   i  c  e  s
RETAIL PRICE INFLATION SINCE 1981
Retail Price Inflation
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