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Stats in a Wrap

Stats in a Wrap

Government

4. What is inflation and how is it calculated?

4. What is inflation and how is it calculated?

2022-07-12
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In this episode, we're going to talk about the prices of things and what happens when they just won't stop going up. Europe is in the grip of inflation fever, and that is affecting everyone. So what's going on? Prices are numbers, and they're everywhere. From supermarkets to petrol stations, online and offline. So, maybe we can find out what's going on with the EU's inflation problem and what might be done about it.
Professor Ludwig von Auer from the University of Trier explains why your purchasing power decreases, when wages don't rise in line with price inflation. And why we have to worry about an inflation that is now almost 8%.
Paul Konijn from Eurostat explains how price information is gathered, with dedicated staff touring shops and service providers across Europe, to gather data on the prices
of goods and services. These prices are now hitting a 25 year high.
In a conversation with Jonathan Elliott on this topic, we find out that inflation can produce winners and losers and discuss the reasons central banks hesitate to respond by increasing interest rates.

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