Is RPI the same as inflation?
 

Might be a silly question I know, but my pay rise in january is linked to RPI.

What is the current rate of RPI if not?

Yes it's one measure of inflation. Currently running at around 5%

RPI and CPI can be found here:

National Statistics Online

Nice one, I wonder if the company will try to back out of the second part of the two year pay deal now. I bet they do.

RPI is fixed to make inflation look lower than it really is. They pick the items on which to collate price rises very carefully.

Les

^^^ Utter nonsense.

Care to expand?

RPI is not massaged politically, end of story.

The inflation rate is calculated from the prices of a range of different goods and services selected to represent average spending patterns in the UK. The Office for National Statistics monitors changes in these prices each month, and uses this to work out an average increase for the year. The different items in the ‘basket’ of goods and services are given different weights, so that things we spend more on, such as housing, motoring and food, are given more importance.

Chip

Who do you work for? and what was your deal??


mart

I think you'll find that's CPI Les.. RPI is the higher rate of the two and reflects more accurately the true rate of inflation than the CPI. On that note ideally it's better to wage bargain using RPI, you'll get more cash in your pocket.

Neither are 'fixed' as such one just looks lower than the other (and guess which the Government uses) ;)

Knowledge Guide to the Retail Prices Index/Consumer Prices Index: Introduction

Thank you for that information.

Les :)

Network Rail, the second part of the deal (to be given Jan 09) was RPI + 0.5 %.

So should be nice if it all goes through. :)