Inflation can be measured by either the Consumer Prices Index (CPI) or the Retail Prices Index (RPI).
Each index covers goods and services slightly differently, with RPI including a number of items not included in CPI.
RPI covers mortgage interest payments, council tax, house depreciation, buildings insurance, house purchase costs, the TV license, road fund licenses and trade union subscriptions.
The CPI covers certain charges and fees which are excluded from the RPI which includes stockbroker fees, university accommodation fees, foreign student tuition fees and unit trust fees.
Additionally, the CPI is representative of all private UK households, while the RPI is representative of the majority of private UK households but excludes the highest earners and pensioner households.
Published at Wed, 19 Aug 2020 20:59:11 +0000