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Updated June 2026 · United KingdomInflationMonetary PolicyAD/AS

UK inflation holds at 2.8%

UK CPI inflation was 2.8% in May 2026, unchanged from April but lower than March. This example is useful because it can support two different arguments: lower inflation may improve real incomes and confidence, but it may also signal weaker demand depending on the cause.

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Updated June 2026 · GlobalCost-Push InflationSRASBusiness Costs

Oil price volatility raises business cost risks

Oil price volatility is useful for A-Level Economics because oil affects transport, production and energy costs across the economy. If oil prices rise or remain elevated, firms may face higher costs, creating cost-push inflation and reducing short-run aggregate supply.

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Updated July 2026 · China / GlobalEconomic GrowthGlobalisationTrade

China’s growth slows and affects global demand

China’s real GDP grew by 4.3% year on year in the second quarter of 2026, down from 5.0% in the first quarter. First-half growth was 4.7%, making this a useful example of how slower activity in a major economy can weaken external demand elsewhere.

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Updated April 2026 · United KingdomLabour MarketsMinimum WageUnemployment

Minimum wage increases raise pay for low-income workers

The UK National Living Wage for workers aged 21 and over increased by 4.1% to £12.71 an hour on 1 April 2026. The policy raises the legal wage floor, supporting low-paid workers while increasing labour costs for affected employers.

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