Inflation and profit margins - lessons from the market

Here’s a great video from the BBC which is a neat way of introducing the concepts of price inflation and profit margins - all in one!

Is “everything going up”? The BBC reporter visits a street market in London to canvas opinion. A market stall holder claims that he has to ensure that customers stay happy, which means buying cheaper produce, or absorbing the increasing cost of his products through a lower net profit margin, rather than pass those costs on through higher prices.