Retail price index (RPI),
Definition of Retail price index (RPI):
Official measure of the general level of inflation as reflected in the retail price of a basket of goods and services such as energy, food, gasoline (petrol), housing, household goods, traveling fare, etc. RPI is commonly computed on monthly basis, but an annual rate is also published which serves as a yardstick for adjusting inflation-indexed salaries and wages, tax allowances, and pensions. Several different types of RPI are used for different requirements. A consumer price index (CPI) is a type of RPI.
The Retail Price Index (RPI) is one of the two main measures of consumer inflation produced by the United Kingdom's Office for National Statistics. It is not considered an official statistic by the U.K., but it is used for certain types of cost escalation. The RPI was introduced in the U.K. in 1947, and it was made official in 1956.
The Retail Price Index (RPI) is an older measurement of inflation that is still published because it is used to calculate cost of living and wage escalation; however, it is not considered an official inflation rate by the government. RPI was first calculated for June 1947, largely replacing the previous Cost of Living Index. It was once the principal official measure of inflation. However, the consumer prices index (CPI) now largely serves that purpose in practice.
How to use Retail price index (RPI) in a sentence?
- The Retail Price Index (RPI) is a price index calculated and published by the U.K.'s Office of National Statistics.
- The RPI is an older measure of inflation and is not considered the official U.K. inflation rate for statistical purposes.
- The RPI is still reported for its use as a cost escalator for government transfer payments and wage contract negotiation.
Meaning of Retail price index (RPI) & Retail price index (RPI) Definition