Answer :
In the 12 months leading up to July 2022, UK inflation, based on the Consumer Price Index (CPI), rose by 2.0% compared to the previous year.
The Consumer Price Index (CPI) measures the average change over time in the prices paid by urban consumers for a market basket of consumer goods and services.
To calculate the inflation rate, we subtract the previous year's CPI from the current year's CPI, divide by the previous year's CPI, and multiply by 100 to express the result as a percentage. In this case, if the CPI for July 2022 was 2.0% higher than the CPI for July 2021, we can calculate the inflation rate as follows:
Inflation Rate = ((CPI July 2022 - CPI July 2021) / CPI July 2021) * 100
Inflation Rate = ((CPI July 2022 - CPI July 2021) / CPI July 2021) * 100
Inflation Rate = ((102 - 100) / 100) * 100
Inflation Rate = (2 / 100) * 100
Inflation Rate = 2.0%
Therefore, UK inflation rose by 2.0% in the 12 months leading up to July 2022 compared to the previous year. This increase indicates a general upward trend in consumer prices, which can have various economic implications, including changes in purchasing power and monetary policy considerations.
