A measure of inflation used primarily in the UK for wage bargaining and other purposes. RPI used to be the traditional measure of inflation in the UK for many years which was first calculated in the early 20th Century to evaluate the extent to which workers were affected by price changes during the World War I.

Learn About the Impact of UK RPI on Financial Markets

Currently, RPI includes price changes of goods and services purchased for consumption by households. Unlike the CPI measure, this figure also includes housing costs, council tax, and mortgage interest payments. Furthermore, the RPI also uses a traditional arithmetic mean when averaging price observations, rather than the geometric mean used in CPI, which tends to push RPI inflation slightly higher.