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Learning about inflation

February 25th, 2011

Inflation is on the rise but what does this mean for society? How will it effect the economy? Read on for useful hints and links on teaching this current topic.

About Economic AwarnessInflation rose last month from 3.7% to 4% and governor of the Bank of England, Mervyn King, has warned it could rise to as much as 5% in the coming months.

This Q&A from the BBC provides a useful breakdown of what inflation is and how it affects the cost of living. Students can use the inflation calculator to work out how rising inflation could affect their household.

In a recent video interview the Chancellor, George Osborne, highlighted the need to tackle the nation’s “credit card” debt in order to address rising inflation. Get your students thinking about how inflation relates to the national debt and how they could address the deficit using the Chance to be Chancellor tool.

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