Tuesday, August 17, 2010

Unit 2: Inflation in the UK

Two clips from the BBC explaining some of the reasons why inflation is above target

http://www.bbc.co.uk/news/10994997
http://www.bbc.co.uk/news/business-11001524

a) Why is inflation above target?
b) Why is it likely to remain above target in 2011?
c) Given the information in the clip, explain what is happening to peoples real incomes

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