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What is inflation

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What is inflation — and why it matters. Inflation is the rate at which prices rise over time. It erodes purchasing power — £100 today buys less than £100 a year ago. Central banks target 2% inflation. Too high, and they raise rates. Too low, and they cut. Inflation drives interest rates — and interest rates drive markets. This is what we teach in Module 6.1 — Macro Indicators and Sentiment. https://youtu.be/GbFz0ppoVcc

Key Takeaways

  • Inflation is the rate at which prices rise over time
  • It erodes purchasing power — £100 today buys less than £100 a year ago
  • Central banks target 2% inflation
  • Inflation drives interest rates — and interest rates drive markets
  • This is what we teach in Module 6.1 — Macro Indicators and Sentiment

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For educational purposes only. Not financial advice. Past performance does not guarantee future results. Trading involves risk. Consult a qualified financial adviser before making investment decisions.

I'm Russell Larke — BA (Hons) Business Management, currently completing an MSc in Systems Thinking in Practice, with plans to pursue a doctorate. I've run an environmental consultancy as Managing Director and have traded financial markets for years. I teach the Larke Cycle — a testable framework for understanding market structure beyond chartism. Regards, Russell Larke BA (Hons) Business Management | MSc Candidate (Systems Thinking) Beyond the Chart

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