LecturerGood morning. Inflation is a word in every news headline at the moment, yet it's often misunderstood, so today I'll explain what it actually means and how it is managed.
LecturerAt its simplest, inflation is a general rise in prices across the economy over a period of time. Note the word 'general' — it's the overall trend, not one or two items, that counts.
LecturerTo measure it, statisticians track the cost of a typical basket of goods and services that an average household buys each month, from bread and bus fares to haircuts.
LecturerThe best-known measure is the Consumer Price Index, or CPI, which is published every single month and reported widely in the press.
LecturerNow, a little inflation is not a bad thing at all. Most economists agree that a slow, steady rate of about two per cent a year is actually healthy for an economy.
LecturerThe trouble begins when prices climb faster than wages. When that happens, the same money buys less than before, and we say that your purchasing power has fallen.
VHP English Mở app luyện nghe →