Inflation
Lesson details
Learning outcome
I can understand the impact of inflation.
Key learning points
- Inflation affects the respective cost of various goods
- Rates of inflation vary for different goods
- Pay may not increase at the rate of inflation
Keywords
Inflation - Inflation is the term used to describe rising prices. How quickly prices go up is called the rate of inflation.
Common misconception
When inflation comes down, prices will decrease.
A decrease in the inflation rate means that prices are now rising more slowly and does not mean that prices will decrease.
Teacher tip
For Task B, pupils could research the prices for various items in 2020 and in 2024 and calculate the percentage change. This will give them more information to make a decision about the rate of pay the worker receives.
Content guidance
Depiction or discussion of sensitive content
Supervision
Adult supervision recommended
Licence
Lesson video
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Prior knowledge starter quiz
6 Questions
Q1.A necklace originally priced at £50 is now priced at £52.50. What is the percentage increase in price?
Q2.A shop had 100 customers last week. This week, it had 82 customers. What is the percentage decrease in customers?
Q3.A stock price rose from £25 to £27.75. What is the percentage increase?
Q4.Jacob's test score increased from 72 to 84. What is the percentage increase in his score (to 1 d.p.)?
Q5.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.)?
Q6.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.)?
Assessment exit quiz
6 Questions
Q1. is the term used to describe rising prices.
Q2.How quickly prices go up is called the of inflation.
Q3.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?
Q4.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?
Q5.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?
Q6.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)?
To help you plan your 8 financial education lesson on: Inflation, download all teaching resources for free and adapt to suit your pupils' needs...
To help you plan your 8 financial education lesson on: Inflation, download all teaching resources for free and adapt to suit your pupils' needs.
The starter quiz will activate and check your pupils' prior knowledge, with versions available both with and without answers in PDF format.
We use learning cycles to break down learning into key concepts or ideas linked to the learning outcome. Each learning cycle features explanations with checks for understanding and practice tasks with feedback. All of this is found in our slide decks, ready for you to download and edit. The practice tasks are also available as printable worksheets and some lessons have additional materials with extra material you might need for teaching the lesson.
The assessment exit quiz will test your pupils' understanding of the key learning points.
Our video is a tool for planning, showing how other teachers might teach the lesson, offering helpful tips, modelled explanations and inspiration for your own delivery in the classroom. Plus, you can set it as homework or revision for pupils and keep their learning on track by sharing an online pupil version of this lesson.
Explore more key stage 3 financial education lessons from the Tax, insurance and inflation unit, dive into the full secondary financial education curriculum, or learn more about lesson planning.