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Retail Price Index

A Dictionary of Business and Management | 2006 | © A Dictionary of Business and Management 2006, originally published by Oxford University Press 2006. (Hide copyright information) Copyright

Retail Price Index (RPI) An index of the prices of goods and services in retail shops purchased by average households, expressed in percentage terms relative to a base year, which is taken as 100. For example, if 1987 is taken as the base year for the UK (i.e. average prices in January 1987 = 100), then in 1946 the RPI stood at 7.4, and in November 2005 at 193.6. The RPI is published by the Office for National Statistics on a monthly basis and includes the prices of some 650 goods and services in 11 groups. The prices of the goods are checked every month and individual items and groups are weighted to reflect their relative importance. Weightings are regularly updated by the Family Expenditure Survey. The RPI can be used to calculate the real change in earnings and expenditure by deflating financial data, and is one of the standard measures of the rate of inflation. Compare Consumer Price Index.

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