AQA June 2016 AS Paper 2 Macro Extract B (lines 6 to 8) states ‘The weakness in global energy prices and food prices combined with the recent appreciation in the pound sterling exchange rate help to explain the recent fall in inflation in the UK.’ Explain why a rise in the pound sterling exchange rate is likely to affect the rate of inflation in the UK. [10 marks] Answer plan. Markscheme available online.

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