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walesonline.co.uk 15 Sep, 2021 10:15 am

What is inflation and what is the current UK rate?

What is inflation and what is the current UK rate?
Inflation has risen to its highest in almost 10 years with the sharpest rise on record - but what is inflation and how is it measured?

The ONS publishes updated inflation rates each month, which shows how much prices for goods and services such as food, petrol and hair cuts have changed on average over the last year.This means the latest statistics were generated by comparing the prices for goods and services in August 2020 with that of August 2021.To do this, the ONS collects about 180,000 prices of around 700 goods and services from across the country.Not all goods and services are ranked equally, and essential products that people buy more often, like petrol or diesel, are given more weight when calculating inflation.

There are a number of different measures of inflation that all deal with different types of goods or services.According to the new statistics, the main Consumer Prices Index (CPI) measure of inflation soared to 3.

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