Inflation is a condition in a country’s economy in which the prices of goods and services climb towards the high side. Usually, when there is inflation, the prices of things are often so high that more money is needed to purchase fewer goods or get fewer services. According to experts in the economic field, the normal level of inflation should be between 2-3 percent per year.
Inflation rate can be measured using a number of methods, but the most commonlyusedone is the Consumer Price Index (CPI). This is simply a measure of the goods and services purchased by theaverage consumer; and it is used to determine the general level of rise and fall in prices over a period of time. In the same way also, the Retail Price Index (RPI)is used to measure the changes in the prices of goods and services over a period of time.
Usually, when there is inflation, it affects virtually every sector of the economy. This is not different from what is happening in the UK with regards to the current inflation being experienced. Its impact cuts across all the sectors including the stock market, employment, and investment.
So far, with the current situation of the economy in the United Kingdom, a lot of people are suffering great hardships. Many are trying to ensure that they manage the little they have so that it sustains them throughout the period. But the question is; how much longer is the inflation going to last? And when is it going to end?
According to its most recent post on inflation, the Office of National Statistics (ONS) revealed that the latest inflation figure, based on the consumer price index, which rose from 2.4 percent -2.6 percent in the previous month, fell to 2.5 percent in August. It also revealed that the retail price index also fell from the level of 3.2 percent of the previous month, to 2.9 percent in August. It is believed that the fall in the consumer price index was as a result of the downward pressures mounted by the prices of household & household maintenance, housing & household services (especially that of domestic gas, clothing, and footwear), and finally, furniture.
With this result released by ONS, one might have reason or reasons to believe that subsequently, the inflation level will drop back to the normal one estimated by several economic experts. There is a strong hope that very soon the rate and level of inflation will be under control, but whether this is going to take a longer time to achieve or not is very much unknown.