Inflation | A-Level Economics Notes

These revision notes cover everything you need to know about Inflation for A-Level Economics. They're designed for students studying AQA A-Level Economics, Edexcel A-Level Economics, and Edexcel International A-Level Economics. Written by Jaisul Naik, UCL Economics graduate and A-Level Economics tutor since 2017.

How is inflation measured?

Inflation is measured using the CPI (Consumer Price Index)

It tracks the prices of a weighted basket of goods and services in the UK.

What is inflation?

A rise in the average price level.

What is deflation?

A fall in the average price level.

What is disinflation?

When the rate of inflation slows down (but remains positive) e.g. from 5% to 2%