he Retail Prices Index (RPI) is the most generally recognised yardstick used in the UK to measure the rate of inflation, which refers to the general increase in prices and fall in the purchasing power of money. The index takes into account most items that money is spent on and weights them together in a way that reflects their importance in a consumer's shopping basket. Frequently bought items like food attract a large weight while infrequent purchases such as durable goods are given a smaller one. The rise in the cost of the constituents of the shopping basket is presented as an index, and is calculated and published every month. Periodic adjustments of the mix of items in the basket are made to keep up with changes in expenditure patterns.
An inflationary indicator that measures the prices of a representative sample of household goods and services. It is a general indicator which is used to measure the rise or fall in the cost of living.
A broad basket of goods/services whose price is calculated monthly and which provides a broad measure of the level of inflation.
An average measure of the change in the prices of goods and services bought for consumption by the vast majority of households in the UK.
The most common monthly indicator of inflation. It measures the prices of a representative sample of household goods and services. In general it is an indicator of a rise or fall in the cost of living and is used as a yardstick for increases in wages, state benefits, tax allowances and so on. This monthly quoted figure is called the headline rate, whereas the underlying rate excludes mortgage interest costs.
The general index of retail prices (for all items) published by the Office for National Statistics.
An indicator of the inflation rate of prices, taken from an average change of prices for a particular range of consumer goods.