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

4253 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

Outline and evaluate the economic effects of a fall in the value of the dollar?


Assume the market for Easter rabbits is currently at long term equilibrium. Assume Australia is the largest supplier of easter rabbits. A sudden explosion in the rabbit population of Australia leading up to Easter. How will the market react?


Explain the significance to fiscal policy of the philips curve, referencing the interrelation of its components.


What are negative externalities?


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