Wednesday, February 18, 2009

Unit 2: Declining inflation in the UK

The UK inflation rate (CPI) is now back within limits (2% +/-1%) at 3% reports the BBC, but RPI has fallen dramtically to just 0.1% article Ch4 video

a) Explain why CPI is now below the RPI as shown by the chart in the text having been above it in the recent past

Stuck? These post from Economics teacher and Economicshelp might help; click on the graphic in the top one

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