What is the difference between general inflation and specific inflation?
Ask the Tutor ACCA FM
general inflation and specific inflation?
The general rate of inflation is the overall, average, level of inflation in the country.
Just because the average rate of inflation is (say) 2% does not mean that each individual expense or our selling prices, all inflate at exactly 2%. Some may inflate more and some may inflate less. The specific rate of inflation for each expense is the actual rate at which that expense is inflating.
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