Active learning ideas
Inflation is the steady increase in the general level of prices, which reduces the purchasing power of money. Students learn how inflation is measured in Ireland using the Consumer Price Index (CPI), which tracks a 'shopping basket' of goods. They will analyze the two main types of inflation: Demand-Pull (too much spending) and Cost-Push (rising production costs, like energy).
Activity 01
Groups are given a list of 50 items and must decide which ones belong in a typical Irish 'shopping basket' today vs. 30 years ago (e.g., replacing landlines with smartphones). They discuss how this affects inflation measurement.
What are the main causes of inflation?
Activity 02
Auction off items using a fixed amount of 'class currency.' In the second round, double everyone's money but keep the items the same. Students observe how prices skyrocket, demonstrating Demand-Pull inflation.
How does inflation impact different groups in society?
Activity 03
Provide scenarios (e.g., 'A student with a €5,000 loan' or 'A retiree with €5,000 in a jar'). Pairs discuss how 10% inflation affects each person and share their findings on the redistributive effects of inflation.
How is the Consumer Price Index calculated?
A few notes on teaching this unit
Watch Out for These Misconceptions
Inflation means all prices are going up.
Inflation is an increase in the *average* price level; some individual prices might be falling while others rise. Using real CPI data in a group task helps students see the variation across different sectors like tech vs. energy.
Inflation is always bad for everyone.
Moderate, predictable inflation is often seen as a sign of a healthy economy, and it helps those with debt. Peer-led debates on 'The Ideal Inflation Rate' can help students see the nuances beyond the 'inflation is bad' headline.
Methods used in this brief
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