Glossary
The terms that come up most often in economic news, each explained in two or three sentences.
A general rise in prices across the economy over time. When inflation is positive, the same amount of money buys a little less than before.
A general fall in prices over time. It may sound pleasant, but a long period of falling prices can lead people and companies to delay spending.
An index that tracks the prices of a typical basket of goods and services bought by households. It is the most common way to measure inflation.
Inflation calculated without the items whose prices change most sharply, usually food and energy. It helps to see the underlying trend.
The public institution responsible for a country's currency and for keeping prices stable. Its best-known tool is its main interest rate.
The main short-term interest rate set by a central bank. Many other rates in the economy follow its changes.
The total value of final goods and services produced in a country over a period. It is used to describe the size of an economy and how fast it grows.
Nominal figures are measured in current prices. Real figures remove the effect of price changes, so they show whether the actual amount has changed.
A significant and lasting decline in economic activity. A common rule of thumb is two quarters in a row of falling real GDP.
All people who are either working or actively looking for work. Students, retirees and others who are not looking for work are outside it.
The share of the labour force that has no job, is available to work and is actively looking for one.
The share of working-age adults who are in the labour force. It helps to explain changes in the unemployment rate.
Every step between raw materials and the final customer: production, transport, storage and delivery.
A statistical correction that removes regular yearly patterns, such as holiday hiring, so that different months can be compared fairly.
A comparison with the same period one year earlier. It smooths out seasonal swings and short-term noise.
An update to a previously published figure once more complete information becomes available. First estimates are often revised.