Salma Ahmed
English Lit. GCSE Student
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Inflation.
- Words:
- 898
- Submitted:
- Mon Feb 02 2004
Have a little read: ... Inflation Why do the items in your shopping basket cost more (or less) than they did the day before? Sally Bolton explains Friday January 18, 2002 What is inflation? Inflation is a sustained rise in prices across an economic area - literally "the cost of living". In Britain it is calculated by monthly measuring the percentage rise in price of a weighted sample, or basket, of goods and services that a typical household buys, compared to the year before. Why are there different types of inflation rate? The above rate is called the Retail Price Index (RPI) and includes the cost of mortgage inflation rates. This is a prominent inflation rate that is quoted frequently by the media, so it is also called the headline rate. Another important measurement is the underlying inflation rate, or RPIX. This is RPI minus the cost of mortgage interest rates, so, since mortgage interest rates
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