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P5 M2
P5 M2
Tesco
Rate of Inflation Inflation in the economy means that there is a rise in the price
of goods and services. Currently the rate of inflation is 0.3% and the Government
had predicted the target to be 2%. This shows that the prices of products we buy
are still higher, but have not increased by as much. For Tesco this means ...
Recently in the news, there has been a 5% increase in the price of alcohol. The
reasons for this being are an increase in the price of alcohol will stop binge drinking
and it will bring in more revenue for the Government. This impacts Tesco as less
people are buying alcohol in store which means less revenue coming into the
business.
Deflation means that there is a decrease in the price of goods and services. The
UK economy is heading towards a time of deflation as figures are expected to
show that inflation dropped to 0.1%. This may sound good as it allows one to buy
more goods with the same amount of money over time. In reality it may not be
good for the economy as it may be the result of very little demand in the
economy. In the news a few months back, deflation had struck in the E.U which
meant prices of products and services where falling due to lack of demand. The
reason was because most of Britains trade is with the EU and therefore British
firms will find it harder to sell goods to the EU market. This means that
businesses like Tesco....