Retail Price Index

The measure of the rate of inflation in the United Kingdom, the Retail Price Index calculates the cost of buying a standard basket of goods and expresses this as a percentage of the base year index. For example, when the base year is 100 and the current Retail Price Index is 150, this indicates that prices have risen by 50% since the base year. Note, however, the constituents of the basket change over time to reflect consumer preferences. For example, LPs have been replaced by compact discs and pilchards by pasta sauce. The usual Retail Price Index (the headline figure) takes into account mortgage interest payments, on the basis that this is a typical cost for a household. There are however two alternative RPI measurements. RPI( X) excludes the impact of mortgage interest payments while RPI( Y) excludes the impact of mortgage payments and indirect taxes, such as VAT. Dresdner Kleinwort Wasserstein financial glossary

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Retail Price Index Retail Price Index index1

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   ► See RPI.

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retail price index UK US noun [C, usually singular] (ABBREVIATION RPI) ECONOMICS
in the UK, a list of the prices of some basic goods and services, showing how they change over time, as a way of measuring inflation: »

Interest payments are increased in line with changes in the retail price index.

»

The retail price index was up 3.6% from a year earlier.

the retail price index increases/decreases »

The Retail Price Index (RPI) increased by 0.4% in May to an annual rate of 2.8%.

See also CONSUMER PRICE INDEX(Cf. ↑consumer price index), COST OF LIVING INDEX(Cf. ↑cost of living index)

Financial and business terms. 2012.

Look at other dictionaries:

  • retail price index — retail price .index n abbreviation RPI the retail price index a list of certain goods and services and how much their prices change each month …   Dictionary of contemporary English

  • retail price index — noun an index of changes in retail prices • Hypernyms: ↑price index, ↑price level * * * retail price index noun A monthly index of the retail prices of specific household goods and services, used as a measure of the rate of inflation (abbrev RPI) …   Useful english dictionary

  • retail price index — N PROPER: the N The retail price index is a list of the prices of typical goods which shows how much the cost of living changes from one month to the next. [BRIT] The retail price index for September, to be released on Friday, is expected to show …   English dictionary

  • retail price index — Mktg a listing of the average levels of prices charged by retailers for goods or services. The retail price index is calculated on a set variety of items, and usually excludes luxury goods. It is updated monthly, and provides a running indicator… …   The ultimate business dictionary

  • retail price index — /ˌri:teɪl praɪs ˌɪndeks/, retail prices index /ˌri:teɪl praɪsɪz ˌɪndeks/ noun an index which shows how prices of consumer goods have increased or decreased over a period of time. Abbreviation RPI COMMENT: In the UK, the RPI is calculated on a… …   Dictionary of banking and finance

  • Retail Price Index — RPI An index of the prices of goods and services in retail shops purchased by average households, expressed in percentage terms relative to a base year, which is taken as 100. For example, if 1987 is taken as the base year for the UK (i.e.… …   Accounting dictionary

  • Retail Price Index — RPI An index of the prices of goods and services in retail shops purchased by average households, expressed in percentage terms relative to a base year, which is taken as 100. For example, if 1987 is taken as the base year for the UK (i. e.… …   Big dictionary of business and management

  • retail price index — noun (in the UK) an index of the variation in the prices of retail goods and other items …   English new terms dictionary

  • Retail Price Index — (abbr the RPI) a figure published by the British government every month which shows the change in the overall cost of goods and services bought by an average household. It is used to calculate the rate of inflation. * * * …   Universalium

  • retail price index, the — retail price ,index, the noun BRITISH the CONSUMER PRICE INDEX …   Usage of the words and phrases in modern English

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