Government, laws, World events, Consumer tastes, Economic climate, Changes in the population
Inflation
The general rise in prices
Example of inflation
2013 - Price of goods =£100
2014 - Price of same goods = £103
This means that the price of goods went up by 3%
How to measure inflation
Using the consumer price index where it gathers information about prices of goods and services and find the average when recording the prices every month which is then converted into an index number.
