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

4256 Views

See similar Economics A Level tutors

Related Economics A Level answers

All answers ▸

The price of tea in the UK increased from £7.20 per kilo to £8.48 per kilo. Over the same period the quantity of tea purchased fell from 97 million kilos to 76 million kilos. Calculate the price elasticity of demand for tea.


What is meant by absolute poverty and analyse how access to clean water, or another essential item, is closely linked to production, income and wealth, within countries and between countries.


Describe the market structure for the supermarket industry in the UK. Give reasons for your answer.


Explain the market failures associated with increasing transport use.


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