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Year 8

Inflation

I can understand the impact of inflation.

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Year 8

Inflation

I can understand the impact of inflation.

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Lesson details

Key learning points

  1. Inflation affects the respective cost of various goods
  2. Rates of inflation vary for different goods
  3. Pay may not increase at the rate of inflation

Keywords

  • Inflation - Inflation is the term used to describe rising prices. How quickly prices go up is called the rate of inflation.

Common misconception

When inflation comes down, prices will decrease.

A decrease in the inflation rate means that prices are now rising more slowly and does not mean that prices will decrease.


To help you plan your year 8 financial education lesson on: Inflation, download all teaching resources for free and adapt to suit your pupils' needs...

For Task B, pupils could research the prices for various items in 2020 and in 2024 and calculate the percentage change. This will give them more information to make a decision about the rate of pay the worker receives.
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Adult supervision recommended

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This content is © Oak National Academy Limited (2025), licensed on Open Government Licence version 3.0 except where otherwise stated. See Oak's terms & conditions (Collection 2).

Lesson video

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6 Questions

Q1.
A necklace originally priced at £50 is now priced at £52.50. What is the percentage increase in price?
Correct Answer: 5%, 5
Q2.
A shop had 100 customers last week. This week, it had 82 customers. What is the percentage decrease in customers?
Correct Answer: 18%, 18
Q3.
A stock price rose from £25 to £27.75. What is the percentage increase?
Correct Answer: 11%, 11
Q4.
Jacob's test score increased from 72 to 84. What is the percentage increase in his score (to 1 d.p.)?
Correct Answer: 16.7%, 16.7
Q5.
A house is valued at £4 000 000. It is sold for £1 428 057. What is the percentage decrease in value (to 1 d.p.)?
Correct Answer: 64.3%, 64.3
Q6.
A pumpkin is being grown for a competition. One week it weighs 6 kg. By the competition, it weighs 962 kg. What is the percentage increase (to 1 d.p.)?
Correct Answer: 15 933.3%, 15 933.3

6 Questions

Q1.
is the term used to describe rising prices.
Correct Answer: Inflation
Q2.
How quickly prices go up is called the of inflation.
Correct Answer: rate
Q3.
The Government set the Bank of England an inflation target of 2%. If a car costs £20 500 now, what will it cost next year?
Correct Answer: £20 910
Q4.
It is the year 2000 and Izzy has £2 to spend in her local shop. A 'Freddo' chocolate bar costs 10 pence. How many can she buy?
Correct Answer: 20
Q5.
It is the year 2020 and Izzy has £2 to spend in her local shop. A 'Freddo' chocolate bar costs 27 pence. How many can she buy?
Correct Answer: 7
Q6.
It is 2020 and a worker is paid £8.72/hour. If the rate of inflation is 2% each year, what should the worker be paid in 2024 (assuming their pay increase each year by the rate of inflation)?
£8.89
£9.07
Correct answer: £9.44
£9.63