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Inflation: Key Economic Indicators

Published Tuesday, October 18, 2016

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 1.0% in September, the highest since November 2014 when it was also 1.0%. The RPI inflation rate also increased from 1.8% in August to 2.0% in September.

The main contribution to the increase came through rising prices for clothing, overnight hotel stays and motor fuels, and prices for gas, which were unchanged, having fallen a year ago. These upward pressures were partially offset by a fall in air fares and food prices.

Commons Briefing papers SN02792

Author: Dominic Webb

Topics: Economic policy, Economic situation

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