The Retail Price Index (RPI) is a measure of inflation in the United Kingdom. It is calculated by taking the price of a basket of goods and services that a typical household might purchase, and measuring how the price of this basket changes over time. The basket is made up of a wide range of items, including food, clothing, housing, transportation, and entertainment.The RPI is calculated by the Office for National Statistics (ONS), which surveys a representative sample of prices for goods and services in the basket. These prices are then used to calculate the RPI, which is expressed as a percentage change from a reference period (usually the previous year).The RPI is different from the Consumer Price Index (CPI), which is another measure of inflation. The CPI is also calculated by the ONS and is based on a basket of goods and services, but it is designed to be more representative of the spending patterns of the entire population of the UK, rather than just typical households. The CPI is also calculated using a different methodology than the RPI, which can result in different inflation rates being reported.
