Debt has been rising as a proportion of income. Households have been getting into greater debt, with consumption helping to underpin growth of GDP. Fundamental to macroeconomics is the formula for aggregate demand (AD).
The latest inflation rate figures for February 2018 have seen a fall from 3% to 2.7%. This disinflation has occurred for a number of reasons. The effect of the significant fall in the exchange rate is no longer being felt as the higher import prices fade out of the measurement of inflation. Food, transport and prices for accommodation such as hotels have fallen.
A key challenge is getting all of our students engaged in wider reading. We encourage them to follow the news and discuss what is happening in the real world. This is so important in helping students understand case studies in the examination and where appropriate bring in their own examples.