Economics Grade 12 Notes for 2025 are available for download in Word and PDF formats on this website.
CONTEMPORARY ECONOMIC ISSUES
INFLATION
- Inflation
- Description: A sustained and significant increase in the general price level over a period of time; and a simultaneous decline in the buying power of money.
- Ways to measure inflation
- Indexes – two indexes are used Consumer Price Index (CPI) and Producer Price Index (PPI).A price index is compiled by using the prices of a representative range of goods and services which are recorded on a regular basis.
- Weighting – Each item in the basket of goods and services is given a weight. This weighted index reflects the importance of an item in the basket. The higher the weight the more important is the item.
- Inflation rate: The inflation rate is determined by using changes in the CPI and/or PPI index. The figures for each month are compared to the corresponding month in the previous year
- Types of inflation
- Consumer inflation:
–Headline inflation– unadjusted CPI rate; (is measured by CPI); consists of a shopping basket of goods and services of an ordinary South African household in urban areas.
It is used for inflation targeting, meaning when it is above 6% SARB may increase interest rates.
–Core inflation– excludes item in the CPI basket that have volatile prices (continually changing) and those affected by government intervention. Examples vegetables; fresh and frozen meat and fish; interest rate on mortgage bonds; VAT and assessment rates.
Core inflation is lower than headline inflation and is often stable.
– Administered prices– prices that are controlled by the government through authorities. e.g. electricity (NERSA),
- Producer inflation: Producer price index (PPI) measures prices of domestically produced goods.
Difference between Consumer Price Index and Producer Price Index
| Consumer Price Index | Producer Price Index |
| Pertains to cost of living | Pertains to cost of production |
| Basket consists of consumer goods and services | Basket consists of goods only |
| Capital and intermediate goods are excluded | Capital and intermediate goods are included |
| Prices include VAT | Prices exclude VAT. |
| Interest rates are taken into account | Interest rates are excluded. |
| Prices of imported goods are not shown | Prices of imported goods are shown explicitly |
Downloadable Economics Grade 12 Notes
- Economics Worksheet 1 + Answers
- Worksheet 4 + Answers
- Worksheet 5 + Answers
- Self-Assessment Week 1+ Answers
- Worksheet 7 + Answers
- Worksheet 8 + Answers
- Worksheet 9+ Answers
- Worksheet 15 + Answers
- Worksheet 16
- Worksheet 20 + Answers
- Worksheet 21 + Answers
- Worksheet 22 + Answers
- PowerPoint- Protectionism _ Free Trade
- Paper 2 Questions + Answers
- Contemporary Economic Issues Revision Booklet+ Answers
- Worksheet 12 5 Micro-economics + Answers
- Revision Booklet – Economic Pursuits
- Solution Booklet – Economic Pursuits
- Worksheet 13 5 Microeconomics + Answers
- Worksheet 14 5 Microeconomics + Answers
- Worksheet 15 5 Microeconomics + Answers
- Worksheet 26 5 + Answers
- Worksheet 4 6 + Answers
- Perfect competition
- Macro-economics Presentation
- Worksheet 10 6 20 + Answers
- Monopoly Presentation
- Oligopoly Presentation
- Work sheet 17 6 20 + Answers
- Work sheet 24 6 + Answers
- Work sheet 25 6 + Answers
- Work sheet 1 7 + Answers
- Work sheet 2 7 + Answers
- Work sheet 8 7 20 + Answers
- Work sheet 9 7 20 + Answers
- Work sheet 15 7 + Answers
- Work sheet 16 7 + Answers
- Worksheet 30 7 20 + Answers
- Worksheet 05 8 20 + Answers
- Work sheet 21 8 20 + Answers
- Work sheet 26 8 20 + Answers
- Work sheet 27 8 20 + Answers
- Worksheet 08 09 20 + Answers