The UK index of consumer prices, previously known as the cost of living index. By a monthly repricing of a bundle of goods and services representative of an average consumer's expenditure, it shows how much the price level has increased. The prices of more than 600 goods and services on sale in 180 towns are collected; data from the family expenditure survey are also used. The weights used are 17.5 per cent for housing, 15.4 per cent for food and 4.2 per cent for local domestic taxation. Its emphasis on consumer prices makes it a crucial indicator of the welfare effects of inflation and is of central importance to wage negotiators. In the UK, there were changes of the base in 1974 and 1987. The inclusion of mortgage payments and local taxation is unusual by international standards.
See also: consumer price index; headline rate of inflation; Laspeyres index; Paasche index
The retail price index (RPI) is an index compiled by the United Kingdom’s Office for National Statistics to reflect the cost of living...
The rate of increase in the average price of goods and services over a specified period of time. The most common measure of inflation is that of ret
Inflation, typically measured by the consumer price index (CPI) or by the implicit price deflator, refers to the increase in the overall price level