Answer to Question #84177 in Macroeconomics for J Rutland

Question

Hey! I'm currently studying A Level Economics. We're researching inflation right now, and one thing has confused me!

What is the difference between CPI and RPI??

Are there also measures called CPIX and RPIX too?
If so, what are these?

The internet seems to conflict on answers to these questions and my textbook doesn't mention the CPIX/RPIX at all.

Thanks!! :)

Answer 1

CPI stands for the consumer price index, while RPI - is retail price index. Both indicators measure the level of inflation in a country. However, RPI includes only representative retail goods and services. CPI is a broader index, which includes broader selection of goods and services, for instance, utilities. RPIX removes the cost of mortgage interest payments. CPIX includes the costs of consuming shelter services provided by a house.