what is the diference between the consumer price index (CPI) and the retail price Index (RPI)?

Question

what do they each mean? What arae each of them used for? Thanks!

Answer 1

RPI=An index that gathers the prices of several retail goods in outlets across the United States in order to give an indication of the rate of inflation.

very close to
CPI=A measure that examines the weighted average of prices of a basket of consumer goods and services, such as transportation, food and medical care. The CPI is calculated by taking price changes for each item in the predetermined basket of goods and averaging them; the goods are weighted according to their importance. Changes in CPI are used to assess price changes associated with the cost of living.



The big difference is the weighting in the CPI and the basket other than that, they are very close.

Answer 2

Veritas is on the ball different than that the respond given lacks credibility by making use of being very occasion politically oriented. Thatcher additionally moved to the CPI after making use of the RPI, to fool the British human beings into believing that inflation had fallen (by making use of .5%) whilst loan expenses etc had brought about a month-to-month RPI advance of over 2%. This at a time whilst inflation became busting the severe 20% determine. it rather is someone-friendly con for any political occasion particularly because of the fact the common Brit hasn't have been given a clue approximately economics and is extremely occasion politically sycophantic! He /she compensates for their loss of understanding by making use of accepting their occasion's propaganda as reality, because of the fact of their own inate lack of ability to comprehend what's incredibly happening. Ask them to describe some thing straightforward like the variation between present day and regressive taxation and that they are lost - quite whilst it comes right down to which device advantages them maximum and which occasion follows which device . yet they are going to quickly sufficient aid you understand techniques sturdy their occasion is whilst it is composed of tax cuts, often whilst they have merely been screwed by making use of their heroes (pollTax) - lol. Sorry to %. on Tories plenty yet I even have yet to fulfill a Conservative supporter that has any concept relating to the reality of Conservative taxation coverage, or for that remember a real Labour (no longer New neo Conservative Labour) sycophant that has the foggiest concept of what GNP or GDP actually ability for the rustic. pay attention the DIY economist that slates his opposition, for he hardly speaks an identical language which you're used too!, in reality, maximum communicate their own dialect, infused with occasion political propaganda and lacking reality!!

Answer 3

the anwser above is essentially correct, but he forgot to mention that the rpi also includes housing costs, such as mortgage repayments, whereas the cpi does not. as a result of the housing market boom, rpi is therefore always higher.