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Rpi Vs Cpi Inflation - Future Trends

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CPI (cost of living very concentrated on consumable) has lagged RPI (cost of living including housing costs) for quite a long time AFAIK

could the tables be turned - could CPI go ahead of RPI over the coming decades?

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In the budget, if I recall, wasn't there changes to how some benefits/pension were raised annually? A change to cpi form rpi?

If you suggest correctly then that would be (another) own goal

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In the budget, if I recall, wasn't there changes to how some benefits/pension were raised annually? A change to cpi form rpi?

If you suggest correctly then that would be (another) own goal

except:

CPI is a geometric mean, while RPI is an arithmetic mean. For those I haven’t already lost, the full reference is here in para 9.4.1.

But what we can all grasp is this:

The CPI annual rate would typically have been about 0.5 percentage points higher if the elementary aggregates had been calculated using arithmetic means as in the RPI.

In other words CPI would be 1/2 per cent lower than RPI, even if all other things were equal.

from http://www.touchstoneblog.org.uk/2010/06/cpi-rpi-and-public-sector-pensions/

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In the budget, if I recall, wasn't there changes to how some benefits/pension were raised annually? A change to cpi form rpi?

If you suggest correctly then that would be (another) own goal

Probably done just in time to be an own goal.

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  • 145 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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