I think it is the same, but if it is different can someone explain in simple terms what the difference is
Thank you.
2007-01-16 00:56:33 · 4 answers · asked by spidermike 2 in Business & Finance ➔ Personal Finance
Inflation is a rise in general prices - this takes house prices, petrol, the RPI etc into account. The RPI however just takes prices from the 'retail sector' into account - the number of products included if far narrower than that of inflation.
2007-01-16 01:05:25 · answer #1 · answered by nickthesurfer 4 · 0⤊ 0⤋
Inflation is the percentage of rise of the Retail Price Index (called Consumer Price Index in some countries) over a certain period, mostly a year. If you plot the RPI on the Y axis and the time over X axis, the slope of the curve is the inflation.
2007-01-16 09:09:08 · answer #2 · answered by Swamy 7 · 0⤊ 0⤋
No, they are different. RPI is based upon the increase in cost of certain products (and possibly services) over a period of time. Inflation is more wide ranging.
2007-01-16 09:03:09 · answer #3 · answered by Steve D 2 · 0⤊ 0⤋
Depends what you call inflatsion, RPI is a way of measuring inflatsion, it takes into account retail prices and mortgage repayments.
2007-01-16 09:32:16 · answer #4 · answered by Anonymous · 0⤊ 0⤋