Inflation is the term used to describe rising prices. How quickly prices go up is called the rate of inflation.

Inflation

Financial education

Different types of insurance

Taxation

In this unit we explore the essentials of insurance, how taxation works, and the effects of inflation on personal finances.

Tax, insurance and inflation

Subjects which particular individuals may be sensitive to, eg, adoption, migration, bereavement or death, divorce, poverty, deprivation.

Depiction or discussion of sensitive content

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The Government set the Bank of England an inflation target of 2%. If a car costs £20 500 now, what will it cost next year?

It is the year 2000 and Izzy has £2 to spend in her local shop. A 'Freddo' chocolate bar costs 10 pence. How many can she buy?

It is the year 2020 and Izzy has £2 to spend in her local shop. A 'Freddo' chocolate bar costs 27 pence. How many can she buy?

It is 2020 and a worker is paid £8.72/hour. If the rate of inflation is 2% each year, what should the worker be paid in 2024 (assuming their pay increase each year by the rate of inflation)?

A necklace originally priced at £50 is now priced at £52.50. What is the percentage increase in price?

A shop had 100 customers last week. This week, it had 82 customers. What is the percentage decrease in customers?

A stock price rose from £25 to £27.75. What is the percentage increase?

Jacob's test score increased from 72 to 84. What is the percentage increase in his score (to 1 d.p.)?

A house is valued at £4 000 000. It is sold for £1 428 057. What is the percentage decrease in value (to 1 d.p.)?

A pumpkin is being grown for a competition. One week it weighs 6 kg. By the competition, it weighs 962 kg. What is the percentage increase (to 1 d.p.)?

Inflation

Lesson outcome

Content guidance