The Retail Price Index & inflation
Have you noticed that a loaf of bread or a litre of petrol costs more this year than last year? That steady climb in prices is called inflation, and in this lesson we learn to measure it. We meet the Retail Price Index — a clever 'basket' that tracks the prices a typical Namibian family pays — and we work out, step by step, how to turn prices into an index number and an inflation rate. Then we discover the two main causes of inflation, demand-pull and cost-push, and we discuss who gets hurt when money loses its value. Along the way we meet the Bank of Namibia and its job of keeping inflation under control.
By the end you should be able to (NSSCO Economics 7.1):
- Define the retail price index and show its simple calculation
- Describe the different types of inflation
- Discuss the consequences of inflation
Miss Hilma and Mike talk through the whole topic — with the figure and working drawn live.