Economics class: UK inflation jumps to 2.1% and tops Bank of England target
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Specification:
Inflation
Click to read the article below and then answer the questions:
UK inflation jumps to 2.1% and tops Bank of England target
‘The price of consumer goods rose 2.1% in the year to May.’ Does Andrew Bailey, Bank of England Governor, have to write to the Chancellor to explain the overshoot? Explain your answer.
With reference to the chart, explain whether prices were rising or falling during the months August 2018 — January 2019.
Rising commodity prices are one of the factors fuelling inflation. With reference to the chart — compare the price of Brent crude during the period shown.
Using a diagram, analyse how the reversal of cuts to VAT for the hospitality sector is likely to increase prices.
Discuss whether cost-push or demand-pull pressures are likely to provoke the greatest upside inflationary pressures in the coming months.
Gavin Clarke, Emmanuel College
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