Dr Alfred Duncan interviewed by Pat Marsh on BBC Radio Kent.
In an interview on BBC Radio Kent, Dr Alfred Duncan explained how inflation is calculated, what has caused this recent rise and what the impact on our bank balances will be.
How is inflation calculated?
The Office for National Statistics measure what type of goods we buy daily and look at how the prices of those goods change over time and weigh them by how much of our money we spend on these goods. An average over all of these price changes results in a general measure of how much our cost of living is increasing each month.
What has caused the recent rise in inflation?
3 trends pushing in the same direction
- Higher costs coming from us adapting to Covid
- Our new demands in response to Covid are pushing up service and goods prices e.g equipment for outdoor recreation
- Global supply chain issues – some sectors are struggling to keep up with changing conditions which are causing shortages and price increases