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2014 news on inflation - Essay Example

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There has been a severe variation in the ratio of inflation in the current years. The Central Bank (CB) plays a significant role in attempting to stop inflation. The Central Bank…
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2014 news on inflation
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2014 news on inflation

Download file to see previous pages... As a result, the cost of food, non-alcoholic drinks, and petrol declined. The statistic is still under expectation to fall to 1% towards the end of 2014. The fall in inflation has been good news for households since the prices of commodities were higher than the average income of individuals since the financial crisis. Initially, most of the families were not able to buy commodities due to the low income with a rising inflation in the UK. Also, the news in the article unveils to the consumers that their price indices were able to drop by 0.1% from 1.6%. In addition, the news suggests that the Retail Prices Index was able to drop from 2.5% to 2.4% as from the beginning of 2014 (BBC News).
In conclusion, I have learnt few lessons from the news. I have learnt that the annual rate of inflation tells us the changes in the cost of living. I have also learnt that the Retail Prices and Consumer Prices Indices are the main measures of inflation in the country. Lastly, I have learnt that inflation can only be controlled by the Central Bank. Thus, the Central Bank determines the rate of inflation in the ...Download file to see next pagesRead More
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