ECONOMICS
INFLATION
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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CPI
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RPI
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CPIH
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RPIH
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Detailed explanation-1: -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.
Detailed explanation-2: -The retail prices index is the older measure of inflation between the two and typically comes out highest. In December 2022, RPI was higher than CPI: RPI – 13.4% CPI – 10.1%
Detailed explanation-3: -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.
Detailed explanation-4: -The Retail Price Index (RPI) is a measure of inflation, which in turn is the rate at which prices for goods and services are rising.