Inflation remains at 3 percent.

Sites to Visit for More Information:

1. Office for National Statistics
2. Resources for Economists on the Internet

Questions:

1. What is inflation and how is it measured?
2. What type of inflation begins with a rise in petrol prices?
3. What is the Phillips curve?
4. What effect does a change in the price of petrol have on the short-run Phillips curve and the long-run Phillips curve?
5. Do you agree with the article that the Bank of England is not likely to raise interest rates? Why or why not?

Chapters: 20, 26, 28

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