# Retail Price Index (RPI)

The retail price index is an old measure of inflation in the United Kingdom (UK) that is no longer used by the government or the Bank of England . It is a Price Index , a weighted Arithmetic mean products prices that the average household would buy (including Mortgage repayments) to indicate a change in the cost of living over time. It’s use has now been replaced by the Consumer Price Index (CPI) . The main differences were

• Retail Price Index (RPI) included Mortgage repayment costs, so was heavily influenced by house prices in the United Kingdom (UK) , and
• Consumer Price Index (CPI) uses the Geometric mean rather than an Arithmetic mean .

References

• investopedia
• wikipedia
• RPI vs CPI