... it'. However to analyse Inflation properly you have to look at inflation as experienced by industry, as this may give some 'warning of inflationary pressures building up in the economy'. By monitoring the changes in the prices of imports and 'factory Gate price', an indication of what trends are emerging into wage and raw material costs, which could filter through the system to affect retail prices (and in turn RDI). Measuring Inflation can provide a picture in time but the real need of the government is to predict problems, which are likely to occur with the increase in inflation. This covers, (i) Any economy experiencing higher than its international competitors loses out on competitiveness, (ii) when there is inflation, companies and trade unions experience trouble when trying to set prices or wages, and (iii) Groups of people on fixed or low incomes which are not 'index-linked' (adjusted to allow for inflation), ...

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