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What Is Inflation?

Inflation basically finds how the cost of one good or product changes over a period of
time. The number of good used is called the "basket of goods" and there are over 600
products tested. An example of this is that last year a box of eggs…

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as a result. This is a cycle and it is the main cause of inflation. Because there is so much
unemployment, businesses will realise that people will have less money to spend, so
they reduce their prices but when the economy lifts again, they also raise their prices
which again…

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One of the key differences between the two main indexes is that RPI includes housing
costs such as mortgage interest payments and council tax, whereas CPI does not.

How is it Controlled

Inflation is mainly controlled by the government. They have all the CPI rates so they can
see if…


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