Retail price index

Retail Prices IndexRPIGeneral Index of Retail PricesinflationRetail price index (UK)retail pricesRetail Prices Advisory CommitteeRetail Prices Index (United Kingdom)RPIJUK inflation
In the United Kingdom, the retail prices index or retail price index (RPI) is a measure of inflation published monthly by the Office for National Statistics.wikipedia
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Consumer Price Index (United Kingdom)

Consumer Price IndexCPIUK CPI
It has been superseded in that regard by the Consumer Price Index (CPI).
The traditional measure of inflation in the UK for many years was the Retail Prices Index (RPI), which was first calculated in the early 20th century to evaluate the extent to which workers were affected by price changes during the First World War.

Bank of England

The Bank of EnglandBankAsset Purchase Facility
Since 2003, it is no longer used by the government for the inflation target for the Bank of England's Monetary Policy Committee nor, from April 2011, as the basis for the indexation of the pensions of former public sector employees.
Under the terms of the Bank of England Act 1998 (which came into force on 1 June 1998), the Bank's Monetary Policy Committee was given sole responsibility for setting interest rates to meet the Government's Retail Prices Index (RPI) inflation target of 2.5%.

Gilt-edged securities

giltsgiltGilt-Edged Market Maker
The RPI is still used by the government as a base for various purposes, such as the amounts payable on index-linked securities including index-linked gilts, and social housing rent increases.
(Recently, real market interest yields for many (at times, all) index-linked gilts have been negative; but the coupons for new issues have been constrained to be at least +0.125%.) However, their semi-annual coupons and principal payment are adjusted in line with movements in the General Index of Retail Prices (RPI).

RPIX

RPI-X
Variations on the RPI include the RPIX, which removes the cost of mortgage interest payments, the RPIY, which excludes indirect taxes (VAT) and local authority taxes as well as mortgage interest payments, and the RPIJ which uses the Jevons (geometric) rather than the Carli (arithmetic) method of averaging.
RPIX is a measure of inflation in the United Kingdom, equivalent to the all items Retail Price Index (RPI) excluding mortgage interest payments.

June 2010 United Kingdom budget

emergency budget statementJune 2010 budgetemergency budget
The UK Government announced in the June 2010 budget that CPI would be used in place of RPI for uprating of some benefits with effect from April 2011.
From 2011, state benefits other than the state pension and pension credit will be pegged to consumer prices rather than retail prices.

Living Costs and Food Survey

Living Cost and Food Survey
The results of the survey are multi purpose, however it is primarily used to provide information for the Retail Prices Index and the National Accounts estimates of household expenditure, as well as analysis of the effect of taxes and benefits.

Office for National Statistics

ONSOffice for National Statistics (ONS)Office of National Statistics
In the United Kingdom, the retail prices index or retail price index (RPI) is a measure of inflation published monthly by the Office for National Statistics.

Sampling (statistics)

samplingrandom samplesample
It measures the change in the cost of a representative sample of retail goods and services.

Consumer price index

CPIconsumer pricesconsumer price inflation
As the RPI was held not to meet international statistical standards, since 2013 the Office for National Statistics no longer classifies it as a "national statistic", emphasising the consumer price index instead.

Monetary Policy Committee

Bank of England Act 1998MPCBank of England independence
Since 2003, it is no longer used by the government for the inflation target for the Bank of England's Monetary Policy Committee nor, from April 2011, as the basis for the indexation of the pensions of former public sector employees.

Early 1990s recession

recessionlate 1980s recessioneconomic recession
Aided by a recession in the early 1990s, increased interest rates brought inflation down again to an even lower level.

Housing association

housing associationsRegistered Social Landlordhousing trust
Housing associations lobbied the government to allow them to freeze rents at current levels rather than reduce them in line with the RPI, but the Treasury concluded that rents should follow RPI down as far as −2% per annum, leading to savings in housing benefit.

HM Treasury

TreasuryHer Majesty's Treasurythe Treasury
Housing associations lobbied the government to allow them to freeze rents at current levels rather than reduce them in line with the RPI, but the Treasury concluded that rents should follow RPI down as far as −2% per annum, leading to savings in housing benefit.

Housing Benefit

benefitsHousing Benefit (Persons who have attained the qualifying age for state pension credit) Regulations 2006Housing Benefit Regulations 2006
Housing associations lobbied the government to allow them to freeze rents at current levels rather than reduce them in line with the RPI, but the Treasury concluded that rents should follow RPI down as far as −2% per annum, leading to savings in housing benefit.

List of price index formulas

Carli formulaFisher Price Indexindex formulas
After a thorough review, in 2012 the National Statistician's Consumer Prices Advisory Committee (CPAC) determined that due to the use of the Carli formula in certain subcomponents, the RPI is biased upwards compared to other indices by a "formula effect" of roughly one percentage point.

Mark Carney

Mark J. Carney
In January 2018, Mark Carney, Governor of the Bank of England, said that RPI should be abandoned.

Council Tax

precepting authorityLyons Reviewrates
The RPI includes an element of housing costs, whereas the following items are not included in the CPI: Council tax, mortgage interest payments, house depreciation, buildings insurance, ground rent, solar PV feed in tariffs and other house purchase cost such as estate agents' and conveyancing fees.

Mortgage loan

mortgagemortgagesmortgage loans
Variations on the RPI include the RPIX, which removes the cost of mortgage interest payments, the RPIY, which excludes indirect taxes (VAT) and local authority taxes as well as mortgage interest payments, and the RPIJ which uses the Jevons (geometric) rather than the Carli (arithmetic) method of averaging.

Value-added tax

VATvalue added taxGoods and Services Tax
Variations on the RPI include the RPIX, which removes the cost of mortgage interest payments, the RPIY, which excludes indirect taxes (VAT) and local authority taxes as well as mortgage interest payments, and the RPIJ which uses the Jevons (geometric) rather than the Carli (arithmetic) method of averaging.

DMG Media

Associated NewspapersAssociated Newspapers LtdThis is Money

Fuel protests in the United Kingdom

fuel protestsUK fuel protestsfuel protests of 2000
Quote from "Overview of Tax Legislation and Rates" section 3.44: "When oil prices are high, as now, fuel duty will increase by the retail prices index (RPI). However, if the oil price falls below a set trigger price on a sustained basis, the Government will increase fuel duty by RPI plus 1 penny per litre. The Government believes that a trigger price of $75 per barrel would be appropriate, and will set a final trigger price and mechanism after seeking the views of oil and gas companies and motoring groups".

Pension

pensionssuperannuationretirement plan
In the United Kingdom, benefits are typically indexed for inflation (known as Retail Prices Index (RPI)) as required by law for registered pension plans.