What does the government use RPI for?
The government uses the RPI for the uprating of pensions, state benefits, tax allowances and index-linked gilts. It is commonly used in private contracts for uprating of maintenance payments and housing rents. It is also used for wage bargaining.
Why does the UK use RPI?
The U.K. government still uses RPI for some purposes, such as figuring the amounts payable on index-linked securities, including index-linked gilts and social housing rent increases. British employers also use it as a starting point in wage negotiation.
Does the UK use RPI or CPI?
But to make matters confusing, the UK uses several ways to measure inflation, including: CPI: the consumer prices index. CPIH: the consumer prices index plus owner-occupiers’ housing costs. RPI: the retail prices index.
What is the UK RPI?
Inflation is an important measure of any country’s economy, and the Retail Price Index (RPI) is one of the most widely used indicators in the United Kingdom, with the rate expected to rise to 2.5 percent in 2021.
What is the RPI for August 2021?
RPI inflation was 4.8% in August 2021 (Index: 307.4), up from 3.8% in the year to July 2021.
What is the expected RPI for 2021?
A reading that is stronger than forecast is generally supportive (bullish) for the GBP, while a weaker than forecast reading is generally negative (bearish) for the GBP….U.K. Retail Price Index (RPI) YoY.
|Release Date||Aug 18, 2021 (Jul)|
What is the RPI for May 2021?
The UK’s main inflation measure in May 2021 was 2.1%. The inflation measures for the year to May 2021 are as follows: RPI inflation was 3.3% in May 2021 (Index: 301.9), up from 2.9% in the year to April 2021.
What is the RPI rate for 2021?
The CPI inflation rate was 3.1% in September 2021, down from 3.2% in September. The RPI inflation rate was 4.9% in September 2021, up from 4.8% in August.
How is the RPI used by the government?
One major use of RPI by Government lies in its issuance of index-linked gilts. These are widely used by Defined Benefit pension funds seeking to match a variety of inflation-linked liabilities. So the change can affect a scheme’s assets.
When was the RPI introduced in the UK?
Introduced in 1947, RPI was for a long time the UK’s only measure of inflation, and its historic value is one of the main reasons why RPI continues to play a prominent role in the UK. Many long-term contracts, and things like gilts and bonds, are still indexed against RPI.
Is the RPI going to be aligned with CPIH?
On 4 September 2019, the UK Statistics Authority (UKSA) announced its intention to align the Retail Prices Index (RPI) measure of inflation with CPIH – a variant of the Consumer Prices Index that includes an estimate of owner occupiers’ housing costs.
When is the change in RPI due to take effect?
Changes to RPI planned by 2030 September 5, 2019 The Government will consult on when to align RPI inflation with the lower CPIH measure, with the change due to take effect between 2025 and 2030.