How changes in other economies affect inflation in the UK.

• Foreign economies can cause demand pull inflation as an increase in growth of foreign economies means that there will be a increase in demand for UK goods and services
• What will an increase in foreign economies do to demand for UK goods and services?

  increases
• What types of inflation can foreign economies cause?

  demand pull and cost push
• Foreign economies can cause cost push inflation as an increase growth of foreign economies will lead to an increase in demand for commodities
• What will increase in growth of foreign economies do to commodity prices?

  increase