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Inflation: Key Economic Indicators

Published Tuesday, January 16, 2018

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 fell back to 3.0% in December 2017, down from 3.1% in November. This had been the CPI’s highest rate since March 2012.

The RPI inflation rate increased to 4.1% in December 2017, up from 3.9% in November. This is the RPI’s highest rate since December 2011.

The decrease in the CPI rate was mostly due to decreases in the cost of transport (largely because of changes in the way the rate is calculated) and recreation and culture.

Commons Briefing papers SN02792

Author: Philip Brien

Topics: Economic policy, Economic situation

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