Inflation

This is a series of two lessons each lasting one hour on inflation for year 12 Economics students, although it could be adapted for use with younger students as well as Business students.
The first lesson focuses on understanding exactly what inflation is and why governments aim for a small amount of inflation (so avoiding both hyperinflation and deflation) as well as definitions of all these key terms. Links are included to videos by the Bank of England to explain these key terms and Japan is used a case study of the problems of deflation.
The second lesson is focused on how inflation is calculated and includes a worksheet with the key points about this written down (e.g. CPI, RPI, basket of goods, etc.) and then a step-by-step exercise for students to calculate an inflation rate for a basket of goods and then convert this into an index number.