Inflation

A-Z How to Find Information > Statistics and Prices > Price Indexes and Inflation

What is inflation?

• Inflation is a general rise in prices across the economy

What does 'rate of inflation' mean?

• The 'rate of inflation', or the 'inflation rate', is the measure of the average rise in prices across the economy in a specified period. For example, if the general level of prices is 3.5% higher in January this year than in January last year, then the inflation rate for the year would be said to be 3.5%
• Inflation is measured by 'prices indexes' ('prices indices'). The 'rate of inflation' as measured by one prices index will not necessarily be the same as the 'rate of inflation' as measured by another prices index. When you look for figures on the 'rate of inflation' you need to know which measure of inflation (which prices index) is relevant to your need

Page last updated: 2nd December 2012