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Monday 31 January 2011

Unit 2: Inflation data : Changes in real prices (UK 2010)




This is a graphic looking at changes over time in indices of consumer prices for different goods and services.

Using data drawn from the published Retail Price Index since 1988 (the base year)

What are the economic factors behind the divergence in prices for rail fares, cigarettes, household repair services, clothing and electrical items?

The factors you could include in discussions may be;

 changes in indirect taxes
unit labour costs
economies of scale
trade
globalization effects
the intensity of competition

What are the main issues?

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