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Inflation: Key Economic Indicators

Published Friday, January 20, 2017

Inflation: Data on both the CPI and RPI inflation indices.

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The Consumer Prices Index (CPI) is the main measure of inflation. It is produced in line with international standards and is the measure used for the Bank of England’s 2% inflation target. The Retail Prices Index (RPI) is no longer classified as a National Statistic as the way it is calculated does not meet international standards. It is included here as it is well-known and is the longest running measure of inflation.

The CPI inflation rate was 1.6% in December, up from 1.2% in November. This represents the largest month on month increase since May 2014 and is the CPI’s highest rate since July 2014.

The RPI inflation rate also increased from 2.2% in November to 2.5% in December. This is also the RPI’s highest rate since July 2014.

The main contribution to the increase came through prices for air fares and food, as well as motor fuels, which fell by less than they did a year ago.

Commons Briefing papers SN02792

Author: Dominic Webb

Topics: Economic policy, Economic situation

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