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The Times

What’s inflation – and how exactly do we measure it?

  • Written by Kevin Fox, Professor, School of Economics; Director of the Centre for Applied Economic Research, UNSW Sydney
What’s inflation – and how exactly do we measure it? Stokkete/Shutterstock

If the price of a cup of coffee goes up, coffee drinkers are worse off if their income doesn’t increase by at least the same amount – they have less money to spend on other things.

But if the prices of many different goods and services all go up at the same time, it can have a significant impact on people’s...

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