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As we know, inflation is a rise in price levels. In India at the moment, there is a slide in the value of the rupee, and simultaneously food, fuel and manufactured items are raising in price, leading in a high inflation. This is an exmple of stagflation becuase it is a 'cost-push' inflation (inflation caused by rising costs of products).  In India, the inflation rate was expected to rise 6.7% (by economists) but it actually rose 7.23%.

Although fuel costs throughout the UK are rising, UK's inflation has fallen to 2.5% in September from 2.6% in August. It is expected that the rising costs for fuel would cause firms to increase prices as their costs of production are increasing, resulting in cost-push inflation. Instead, lower prices for clothes, furniture, and household services have offset the increase in fuel costs. Furthermore, this decline in costs of food, clothes, and household good has eased the rise in travel fares.  This significant decrease in prices for foods, clothes, and household goods was caused by an incredible decrease in consumer demand during the recession in the UK.    

Over the past year, high inflation has pushed the UK economy into a recession. Inflation has been caused by prices of goods rising faster than wages, also known as cost-push inflation. The weakness of consumer demand has resulted in a decrease in investment from businesses. Specifically, higher food and oil prices has been the reason as to why disinflation has been occurring slower than anticipated by the Bank of England. The issue is that with rising prices, the spending power of consumers is being diminished. 

This is a classic example of cost-push inflation. The supply costs are increasing (in this case the workers wages) which means that SRAS shifts to the left, as less is being is being supplied. Firms hire less workers or produce less because of the high costs. As a result, price levels rise, unemployment levels rise and the real gross domestic product falls. This is also obvious because, if workers go on strike as mentioned in the article, then they are producing less goods, meaning that GDP obviously decreases. This could turn into an inflationary spiral. This spiral is because, when wages are increased for purposes such as to pay or rent or everyday goods, the firms also demand higher prices, which causes those who buy from them to charge more too. This is what causes the cycle to begin. Otherwise it could get to a point where currency becomes worthless.

The increase of the inflation rate is due to a price rise in housing costs and air fares. As rents increased, the over all consumer price index rose "followed by alcohol and tobacco, food, restaurants, and leisure". Cost-push inflation is currently going on in the UK as wages are not rising as quickly as prices for goods and services. UK has frozen both council tax and fuel tax and reduced income tax. Bank of England but its groth forecast to zero. The Bank is cutting intrest rates to get consumers buying again. Lowering tax and intrest rates will help consumers have more money in their pockets and, therefore, more to spend