Economics class: The fight over measuring UK inflation

This article picked by a teacher with suggested questions is part of the Financial Times free schools access programme. Details/registration here.

Specification:

• Inflation

Click to read the article below and then answer the questions:

The fight over measuring UK inflation

• Distinguish between:

  i) RPI;

  ii) CPI; and

  iii) CPIH

• CPI is lower than RPI almost entirely due to the formula effect. Use an example to illustrate how the arithmetic mean compares with the geometric mean

• ‘The battle for RPI continues.’  Discuss whether the writing is on the wall for RPI

Gavin Clarke, Emmanuel College