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Explain why a rise in the pound sterling exchange is likely to affect the rate of inflation in the uk
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Explain why a rise in the pound sterling exchange is likely to affect the rate of inflation in the uk

User Irfan Zulfiqar
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13 votes

Answer:

A higher inflation rate in the UK compared to other countries will tend to reduce the value of the Pound Sterling because: High inflation in the UK means that UK goods increase in price quicker than European goods. ... This increase in the supply of pounds decreases the value of Pound Sterling.

User Richard Housham
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