Have a go at this teaching activity, which includes a downloadable worksheet and suggested answers

Middle East conflict doesn’t prevent economy growing in March, despite forecasts.

UK GDP grew by 0.6% in the first quarter of the year, and by 0.3% in March.

The Office for National Statistics put this down to growth in the retail and construction sectors.

However, this headline figure may be misleading. Some of the growth has been driven by a process known as front-loading where consumers and businesses have brought forward purchases because of fears of future price rises.

Inflation, caused by rising energy and fuel costs in particular, creates problems for both households and firms as real incomes and consumer demand fall.

Small business owners report shrinking profit margins as costs rise faster than the prices they are able to charge.

For firms dependent on imported materials, such as medical device manufacturers relying on polymers, price changes are making planning extremely difficult.

The broader economic outlook is more cautious. The economy could tip into a recession and political uncertainty regarding the Labour leadership has added further instability.