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4.7 Inflation

Topic 4.7 - Inflation

This section of the Cambridge IGCSE Economics (0455) syllabus covers the following topics. Click on the relevant hyperlink to access the resources for this section of the syllabus.

SectionTopicGuidance
4.7.1 Definitions of inflation and deflation-
4.7.2Measurement of inflationMeasurement of inflation using the Consumer Prices Index (CPI)
4.7.3Causes of inflation
  • Demand-pull
  • Cost-push
4.7.4Consequences of inflation
  • How inflation affects savers, lenders, and borrowers
  • Consequences of inflation for consumers, workers, producers (firms), and the economy
4.7.5Policies to control inflationThe range of policies available to control inflation and their effectiveness
Teacher only box

Important note to teachers:

Deflation is no longer covered beyond the definition, i.e., there is no need to teach the measurement of deflation, the causes and consequences of deflation, or the government policies used to tackle deflation (legacy Units 4.8.2 to 4.8.5).

Please be aware of this change if/when using resources for the previous syllabus, such as textbooks, exam papers, and mark schemes.

Additional InThinking resources

Please click on the relevant hyperlink below to access additional InThinking resources for this section of the syllabus.

Return to the Topic 4 - Government and the macroeconomy homepage

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