What is the difference between the RPI and CPI rate of inflation

Both the Consumer Price Index (CPI) and Retail Price Index (RPI) are ways of measuring inflation which is the average change in price of a basket of goods. The RPI, however, includes the costs of housing such as mortgage mortgage repayments, rent and council tax, which take up a large proportion of someone’s income. The CPI on the other hand does not include these goods and as a result is generally around 1% lower than the RPI. Both have their own merits but CPI is generally considered to be more accurate and is used internationally so it is more useful for comparisons.

UD
Answered by Ujjaval D. Economics tutor

4145 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Why might a perfectly competitive firm make abnormal profit in the short run but only normal profit in the long run?


What is the effect of an increase in supply on the economy?


Explain how monetary policy can be used to prevent business cycles


Macroeconomic policy can both be a problem and a solution in economic fluctuations. Explain.


We're here to help

contact us iconContact ustelephone icon+44 (0) 203 773 6020
Facebook logoInstagram logoLinkedIn logo

MyTutor is part of the IXL family of brands:

© 2026 by IXL Learning