Interpreting UK Inflation Charts Flashcards

1️⃣ Familiarise yourself with the flashcards:

  • Look through all the flashcards to see what's on both sides.
  • Make sure you understand the information on each card. If something's unclear, click the link to the revision notes at the bottom of the page for more details.

2️⃣ Test yourself:

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3️⃣ Consistently Review and Practice:

  • Use spaced repetition: spend more time on the cards you struggle with and go over them more often.
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Note: We may include questions that have multiple correct answers. It's useful to remember specific examples to understand these concepts better.

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What does the y-axis on a UK inflation rate chart show?

The annual inflation rate, in per cent (%).

What does CPI stand for on UK inflation charts?

Consumer Prices Index, the main measure of inflation.

What is CPIH, and how is it different from CPI?

CPIH includes housing costs for people who own their home; CPI does not.

What is the Bank of England inflation target shown on many charts?

2% CPI, often shown as a target line.

How do you find the inflation rate for a given month on a line chart?

Find the month on the x-axis, then read the value on the y-axis.

What does a reading below 0% on an inflation chart mean?

Deflation: average prices are lower than a year ago.

What does disinflation look like on a chart?

The inflation rate is falling but stays above 0%.

What does a 'contributions to inflation' bar chart show?

How parts like energy or food add or take away percentage points from total inflation.

On a contributions chart, what does 'percentage points' mean?

The part of the inflation rate added by a category, not a per cent of a per cent.

What does an index value like 110 on a CPI index chart mean?

Prices are 10% higher than in the base year (index 100).

What does 'core CPI' exclude on UK charts?

Energy, food, alcohol, and tobacco.

What does year-on-year (YoY) inflation mean on a chart?

The per cent change in prices compared with the same month last year.