Inflation - RPI

Inflation is a measure of how much more expensive goods and services are to buy. Wage settlements in stable economic times are often linked to the rate of inflation.

The government measures inflation using the Retail Price Index (RPI) - an analysis of the cost of a series of everyday items - including food, fuel, and holidays. The RPI rate of inflation includes house prices.

The Bank of England raises and lowers the base rate of borrowing in the UK in an attempt to keep CPI inflation as close to the government's target (currently two per cent) as possible.

	Public sector pensions link will switch from RPI to CPI Trade unions have lost a high court appeal against the government's decision to switch the inflation link governing the rise of public sector pensions from RPI to the lower rate of CPI.
	Legal & General launches second savings product linked to RPI Following on from the success of its first savings product linked to the retail prices index (RPI), Legal & General has announced the launch of another.
	Tesco Bank withdraws second issue of RPI linked savings bond Tesco Bank has withdrawn its second issue of its savings bond linked to the retail prices index after reaching its investment target of £60 million.
	Govt accused of taking taxes at RPI, paying benefits at CPI The government is being challenged over its decision to base payments on the consumer prices index instead of the retail prices index.
	CPI and RPI details for 2011 revealed The Consumer Price Index (CPI) and Retail Price Index (RPI) for 2011 have been revealed by the Office for National Statistics (ONS).