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Uses and Misuses of Inflation and Price Indices

Uses and Misuses of Inflation and Price Indices

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In recent years, the sharp rise in inflation across the world has brought about challenges for businesses and households alike. In the UK, many pay offers have not met the expectations of employees resulting in widespread strikes. The action of the Bank of England in raising interest rates to bring inflation down has led to sharp rises in mortgage interest rates, putting further pressure on households.

This book explores what is meant by inflation and how we go about measuring it. It recounts the history of price rises over the past few decades and how pensions, pay and benefits have been affected. It also examines the political and economic factors that have driven government responses to inflation. The book completes the broad picture of recent price changes by looking at house prices, rents, and business prices, as well as how they are reported as official statistics.

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