There are a number of differences between the Consumer Prices Index (CPI) and Retail Prices Index (RPI), including their coverage, population base, commodity measurement and methods of construction. Combined, these differences have meant that, for most of its history, the CPI has been lower than the RPI. One of the main reasons to this difference is the method of construction at the lowest level, where different formulae are used in the CPI and RPI to combine individual prices. This difference is usually referred to as the formula effect. This article will investigate similar formula effects present in the inflation measures of other countries, and where necessary will attempt to explain why the magnitude of the formula effect experienced by other countries differs from that of the UK.

Source agency: Office for National Statistics

Designation: National Statistics

Language: English

Alternative title: International Comparison

Measures of monthly UK inflation data including CPIH, CPI and RPI. These tables complement the consumer price inflation time series dataset.

The Consumer Prices Index (CPI) and the Retail Prices Index (RPI) measure the changes from month to month in the cost of a representative 'basket' of goods and services bought by consumers within the UK. This involves weighting together price changes in the indices according to household spending patterns for different categories of goods and services so that each takes its appropriate share. At the beginning of each year the weights used to compile both the CPI and RPI are updated using the latest available information on household spending. Source agency: Office for National Statistics Designation: National Statistics Language: English Alternative title: Updating Weights

The 'shopping basket' of items making up the Consumer Prices Index (CPI) and Retail Prices Index (RPI) are reviewed every year. Some items are taken out of the basket, some are brought in, to reflect changes in the market and to make sure the CPI and RPI are up to date and representative of consumer spending patterns. This article describes the review process and explains how and why the various items in the CPI and RPI baskets are chosen.

Source agency: Office for National Statistics

Designation: National Statistics

Language: English

Alternative title: Basket of Goods

Inflation is an important measure of any country’s economy, and the Retail Price Index (RPI) is one of the most widely used indicators in the United Kingdom, with the rate expected to be 2.9 percent in 2024, compared with 9.7 percent in 2023. This followed 2022, when inflation reached a rate of 11.6 percent, by far the highest annual rate during this provided time period. CPI vs RPI Although the Retail Price Index is a commonly utilized inflation indicator, the UK also uses a newer method of calculating inflation, the Consumer Price Index. The CPI, along with the CPIH (Consumer Price Index including owner occupiers' housing costs) are usually preferred by the UK government, but the RPI is still used in certain instances. Increases in rail fares for example, are calculated using the RPI, while increases in pension payments are calculated using CPI, when this is used as the uprating factor. The use of one inflation measure over the other can therefore have a significant impact on people’s lives in the UK. High inflation gradually subsiding in 2024 Like the Retail Price Index, the Consumer Price Index inflation rate also reached a recent peak in October 2022. In that month, prices were rising by 11.1 percent and did not fall below double figures until April 2023. This fall was largely due to slower price increases in key sectors such as energy, which drove a significant amount of the 2022 wave of inflation. Inflation nevertheless remains elevated, fueled not only by high food inflation, but also by underlying core inflation. As of January 2024, the overall CPI inflation rate had fallen to four percent, and is expected to fall further throughout the year.

The inflation rate for the Retail Price Index (RPI) in the United Kingdom was 3.4 percent in February 2025, down from 3.6 percent in the previous month. From 2021 onwards, prices in the UK rose rapidly, with the RPI inflation rate peaking at 14.2 percent in October 2022. Although inflation fell in subsequent months, it wasn't until July 2023 that inflation fell below double digits, and as of late 2024, the RPI rate was still above three percent. The CPI and CPIH While the retail price index is still a popular method of calculating inflation, the consumer price index (CPI) is the current main measurement of inflation in the UK. There is also an additional price index, which includes some extra housing costs, known as the Consumer Price Index including homer occupiers' costs (CPIH) index, which is seen by the UK's Office of National Statistics as the official inflation rate. As of December 2024, the CPI inflation rate stood at 2.5 percent, while the CPIH rate was 3.5 percent. Core inflation down in 2024 Another way of measuring inflation is to strip out the volatility of energy and food prices and look at the underlying core inflation rate. As of December 2024, this was 3.2 percent, slightly higher than the overall CPI rate, but more aligned with the overall figure than it was in 2022 and 2023. When inflation peaked at 11.2 percent in October 2022, for example, core inflation stood at just 6.5 percent. After energy prices in 2023 fell relative to 2022, the overall inflation rate in the UK declined quite rapidly, with core inflation overtaking the overall rate in July 2023. During the most recent period of high inflation, core inflation peaked at 7.1 percent in May 2023, and while taking longer to fall than the overall figure, has generally been declining since then.

Inflation Rate in the United Kingdom decreased to 2.80 percent in February from 3 percent in January of 2025. This dataset provides - United Kingdom Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Abstract copyright UK Data Service and data collection copyright owner. The Prices Survey Microdata include the underlying price data used by the Office for National Statistics (ONS) to produce the Consumer Prices Index (CPI), the Retail Prices Index (RPI) and associated price indices. The CPI has become the main domestic measure of inflation for macroeconomic purposes in the UK. Since December 2003 it has been used for the inflation target that the Bank of England is required to achieve. The RPI is the most long-standing measure of inflation in the UK, and its uses have included the indexation of pensions, state benefits and index-linked gilts. The study also includes the data underlying the Producer Prices Index. There are four levels of sampling for local price collection: locations/shopping areas; outlets/shops within locations; representative items/goods and services; and products and varieties (price quotes). There are two basic price collection methods: local and central. Local collection is used for most items; prices are obtained from outlets in about 150 locations around the country. Some 110,000 quotations are obtained by this method. Normally, collectors must visit the outlet, but prices for some items may be collected by telephone. Central collection is used for items where all the prices can be collected centrally by the ONS with no field work. These prices can be further sub-divided into two categories, depending on their subsequent use: 1) central shops, where the prices are combined with prices obtained locally, and 2) central items, where the prices are used on their own to construct centrally calculated indices. There are about 130 items for which the prices are collected centrally. The retail price data include the locations containing the shopping outlets from which the price quotes were obtained. These locations are intended to be broadly representative of a central shopping area and the areas where the local shopping population tend to live. The data also include the regions in which those shopping areas are located. Linking to other business studies The producer prices data contain Inter-Departmental Business Register (IDBR) reference numbers. These are anonymous but unique reference numbers assigned to business organisations. Their inclusion allows researchers to combine different business survey sources together. Researchers may consider applying for other business data to assist their research. Latest edition informationFor the thirty-fifth edition (May 2024), monthly Item Indices and Price Quotes data files for January to March 2024 have been added to the study. Main Topics: The Prices Survey Microdata include both retail and producer prices. The retail data include the following files:'backdata' or background information fileslocally collected filescentrally collected item filesitem indices filesprice quote filesClassification of Individual Consumption by Purpose (COICOP) level maps and weights filesThe 'backdata' background information files include:COICOP descriptions and identification codesdescriptions and identification codes for each item (goods and services)location descriptions and identification codes (and the region of the UK)shop codes for each item and locationThe pre-2007 data also include postcodes for the shops. The retail prices data span from 1996 to 2009 (centrally collected item indices), from 1996 to 2013 (annual item indices), from 1st quarter 1996 to 3rd quarter 2016 (quarterly item indices and quarterly price quote data), from October 2016 to July 2023 (monthly item indices and monthly price quote data), and from 1996 to 2013 (locally collected data). The producer prices files span from 1998 to 2021 and include:item and index number codesInter-Departmental Business Register Reporting Unit reference numbers, allowing the data to be matched to other ONS business survey dataindex descriptionsprices for each item/index numberAdditional producer prices files spanning 1996 to 2019 provide only the Producer Prices Indices and summary tables. Other

The Regional Price Index contrasts the cost of a common basket of goods and services at a number of regional locations to the Perth metropolitan area. The RPIs were commissioned to assist with the calculation of the Western Australian State Government’s regional district allowance, and it has been used to assist in policy decision-making. Show full description

The UK inflation rate was three percent in January 2025, up from 2.5 percent in the previous month, and the fastest rate of inflation since March 2024. Between September 2022 and March 2023, the UK experienced seven months of double-digit inflation, which peaked at 11.1 percent in October 2022. Due to this long period of high inflation, UK consumer prices have increased by over 20 percent in the last three years. As of the most recent month, prices were rising fastest in the communications sector, at 6.1 percent, but were falling in both the furniture and transport sectors, at -0.3 percent and -0.6 percent respectively.
The Cost of Living Crisis High inflation is one of the main factors behind the ongoing Cost of Living Crisis in the UK, which, despite subsiding somewhat in 2024, is still impacting households going into 2025. In December 2024, for example, 56 percent of UK households reported their cost of living was increasing compared with the previous month, up from 45 percent in July, but far lower than at the height of the crisis in 2022. After global energy prices spiraled that year, the UK's energy price cap increased substantially. The cap, which limits what suppliers can charge consumers, reached 3,549 British pounds per year in October 2022, compared with 1,277 pounds a year earlier. Along with soaring food costs, high-energy bills have hit UK households hard, especially lower income ones that spend more of their earnings on housing costs. As a result of these factors, UK households experienced their biggest fall in living standards in decades in 2022/23. Global inflation crisis causes rapid surge in prices The UK's high inflation, and cost of living crisis in 2022 had its origins in the COVID-19 pandemic. Following the initial waves of the virus, global supply chains struggled to meet the renewed demand for goods and services. Food and energy prices, which were already high, increased further in 2022. Russia's invasion of Ukraine in February 2022 brought an end to the era of cheap gas flowing to European markets from Russia. The war also disrupted global food markets, as both Russia and Ukraine are major exporters of cereal crops. As a result of these factors, inflation surged across Europe and in other parts of the world, but typically declined in 2023, and approached more usual levels by 2024.

In 2024, the annual inflation rate for the United Kingdom was 2.5 percent, with the average rate for 2025 predicted to rise to 3.2 percent. The UK has only recently recovered from a period of elevated inflation, which saw the CPI rate reach 7.3 percent in 2023, and 9.1 percent in 2022. Before 2022, the inflation rate was at its highest in 2011 when it reached 4.5 percent, and was lowest in 2015 when an annual inflation rate of zero percent was recorded. Inflation has been surging in the UK since late 2021, and reached a 41-year-high of 11.1 percent in October 2022. Since that recent peak, inflation has gradually subsided, and was four percent in January 2024. Inflation down but not out in 2024 Although there are some positive signals regarding UK inflation decelerating throughout 2023, prices are still rising at quite a fast rate, especially in certain sectors. Food inflation, for example, only fell below double-figures in November 2023, and was still rising by 6.9 percent in January 2024. As of that month, however, alcohol and tobacco prices were rising faster than any other sector, with an inflation rate of 12.4 percent. Additionally, underlying core inflation, which measures prices rises without food and energy, is slightly above the headline inflation rate, and was 5.1 percent as of the most recent month. With some aspects of inflation seemingly becoming embedded in the UK economy, this will likely prolong the current Cost of Living Crisis engulfing UK households. Inflation crisis across in the world in 2022 The UK has not been alone in suffering from runaway inflation over the last few years. From late 2021 onwards, various factors converged to encourage a global acceleration of prices, leading to the ongoing inflation crisis. Blocked-up supply chains were one of the main factors as the world emerged from the COVID-19 pandemic. This was followed by energy and food inflation skyrocketing after Russia's invasion of Ukraine. Central bank interest rates were raised globally in response to the problem, possibly putting an end to the era of cheap money that has defined monetary policy since the financial crash of 2008.

The Consumer Price Index of the United Kingdom was 135.2 as of the fourth quarter of 2024, indicating that consumer prices have increased by 35.2 percent when compared with the first quarter of 2015. As of December 2024, the inflation rate for the CPI was 2.5 percent, a slight fall from the previous month.

Inflation Rate in Spain increased to 3 percent in February from 2.90 percent in January of 2025. This dataset provides the latest reported value for - Spain Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Inflation Rate in Italy increased to 1.60 percent in February from 1.50 percent in January of 2025. This dataset provides the latest reported value for - Italy Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

In the three months to December 2024, average weekly earnings in the United Kingdom grew by 5.9 percent, while pay including bonuses also grew by six percent, when compared with the same period in 2023. In the same month, the inflation rate for the Consumer Price Index was 2.5 percent, indicating that wages were rising faster than prices that month. Average salaries in the UK In 2024, the average salary for full-time workers in the UK was 37,430 British pounds a year, up from 34,963 in the previous year. In London, the average annual salary was far higher than the rest of the country, at 47,455 pounds per year, compared with just 32,960 in North East England. There also still exists a noticeable gender pay gap in the UK, which was seven percent for full-time workers in 2024, down from 7.5 percent in 2023. Lastly, the monthly earnings of the top one percent in the UK was 15,887 pounds as of November 2024, far higher than even that of the average for the top five percent, who earned 7,641 pounds per month, while pay for the lowest 10 percent of earners was just 805 pounds per month. Waves of industrial action in the UK One of the main consequences of high inflation and low wage growth throughout 2022 and 2023 was an increase in industrial action in the UK. In December 2022, for example, there were approximately 830,000 working days lost due to labor disputes. Throughout this month, workers across various industry sectors were involved in industrial disputes, such as nurses, train drivers, and driving instructors. Many of the workers who took part in strikes were part of the UK's public sector, which saw far weaker wage growth than that of the private sector throughout 2022. Widespread industrial action continued into 2023, with approximately 303,000 workers involved in industrial disputes in March 2023. There was far less industrial action by 2024, however, due to settlements in many of the disputes, although some are ongoing as of 2025.

Consumer Price Index CPI in India decreased to 192.50 points in February from 193.40 points in January of 2025. This dataset provides - India Consumer Price Index (CPI) - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Inflation Rate in Hong Kong decreased to 1.40 percent in February from 2 percent in January of 2025. This dataset provides the latest reported value for - Hong Kong Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Inflation Rate in Ireland decreased to 1.80 percent in February from 1.90 percent in January of 2025. This dataset provides the latest reported value for - Ireland Inflation Rate - plus previous releases, historical high and low, short-term forecast and long-term prediction, economic calendar, survey consensus and news.

Consumer Price Index CPI in Netherlands increased to 132.80 points in February from 131.35 points in January of 2025. This dataset provides - Netherlands Consumer Price Index (CPI) - actual values, historical data, forecast, chart, statistics, economic calendar and news.

Inflation Rate in Mauritius decreased to 0.10 percent in February from 1.90 percent in January of 2025. This dataset provides - Mauritius Inflation Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news.