2. Competition’s effect on inflation 2.1. Introduction to inflation 2.2. How does competition affect inflation? 2.3. Exacerbating inflation through weak competition 2.4. Relationship over the longer term 2.5. Summary 3. Does inflation pose risks to competition? 3.1. Effects of competition on inflation 3.2. Firms’ reaction to inflation 3.3. Consumer decision making underinflation 4. What can competition authorities do in inflationary periods? 4.1. Relevance of competition policy as an inflation fighting tool 4.2. How should authorities approach high inflationary periods? 4.3. Enforcement 4.4. Practical considerations