United Kingdom - Consumer Price Index (CPI)





United Kingdom: Consumer Price Index (CPI)

Mnemonic CPI.IGBR
Unit Index 2015=100, NSA
Adjustments Not Seasonally Adjusted
Monthly 0.56 %
Data Apr 2019 107.6
Mar 2019 107

Series Information

Source U.K. Office for National Statistics (ONS)
Release Consumer Price Inflation
Frequency Monthly
Start Date 6/30/1947
End Date 4/30/2019

United Kingdom: Price

Reference Last Previous Units Frequency
Consumer Price Index (CPI) Apr 2019 107.6 107 Index 2015=100, NSA Monthly
Producer Price Index (PPI) Apr 2019 115.5 115.2 Index 2010=100, NSA Monthly
Wholesale Price Index 2016 107.04 106.6 Index 2010 = 100 Annual

Release Information

Consumer Price Indices (CPI), is the main UK domestic measure of inflation for macroeconomic purposes. The CPI is a measure of consumer price inflation produced to international standards and in line with European regulations. First published in 1997 as the Harmonised Index of Consumer Prices (HICP), the CPI is the inflation measure used in the Government’s target for inflation.

The ONS publishes a range of measures of consumer price and other price inflation, all of which measure the inflation for different groups of people or products. 

  • The Producer Prices Indices (PPIs) measure the prices of goods bought and sold by UK manufacturers. The headline measure, known as factory gate inflation, measures the price of the goods UK manufacturers charge other UK businesses for their products. This is great if you own a factory or want to understand how this part of the economy is performing, but not so useful if you want to understand the pressures on your own personal budget.
  • Service Producer Price Indice (SPPIS) do a similar job for the service industry sector, and have similar types of use to PPIs, but from a service sector perspective.
  • For private households, there are the Consumer Prices Index (CPI) and Retail Prices Index (RPI). From March 2013, ONS will also publish a new measure, CPIH, which includes owner occupiers’ housing costs which are excluded from the CPI.

The multiple measures for private households bring us on to the second reason for producing a range of measures – what do you want to do with your measure of inflation? The CPI has been designed to provide a comparable measure of inflation across Europe. Having been designed to be comparable, it has also been designed in line with best international standards for measuring the inflation of private households.

The RPI has been around a lot longer than the CPI (it dates back to the 1940s). The RPI has many long-term users and ONS is required to produce it under UK law. The National Statistician recently announced that the RPI does not meet best international standards because of a formula used in its calculation. Therefore a new index called RPIJ, which uses another formula (called Jevons) in its calculation, will be published from March 2013. In recognition of the value to users in maintaining continuity, the RPI will continue to be published too.

The CPI and the RPI are compiled using the same underlying price data, and are based on a large and representative selection of around 650 individual goods and services for which price movements are measured in around 150 randomly selected areas throughout the UK. Around 120,000 separate price quotations are used every month to compile the indices. The outlets in which the prices are collected are selected randomly. Expenditure weights are held constant for one year at a time. The selection of goods and services that are priced to compile the CPI and RPI is reviewed annually. The contents of the 2008 basket are described in an article published on the National Statistics website at: http://www.statistics.gov.uk/cci/article.asp?ID=1951 The expenditure weights used to compile the indices are also updated each year. Additional details of the updated CPI and RPI weights for 2008 are available from the National Statistics website in an article entitled Consumer Prices Index and Retail Prices Index: Updating Weights for 2008:

http://www.statistics.gov.uk/cci/article.asp?id=1991

Rates of change for the CPI are calculated from unrounded index levels, rather than on the published indices, which are rounded to one decimal place. The use of unrounded indices increases the accuracy of the calculation. The unrounded index levels are available on request. By contrast, rates of change for the RPI are calculated from the published rounded indices. Starting January 2016, the indices are based to 2015=100. 

The data is subject to revisions. 

For futher information, please follow: https://www.ons.gov.uk/economy