Background: What is the difference in CPI and RPI - and why does it matter?published at 15:46 Greenwich Mean Time 27 February 2019
Both CPI and RPI are measures of inflation - but they are calculated in a slightly different way.
For RPI, the arithmetic mean is taken on a group of items (including housing).
CPI, on the other had, uses what is called the geometric mean on a group of items (it does not look at housing).
This had led to RPI being 1.2 percentage points more, on average, than CPI (with a notable exception during the recession when mortgage rates hit near-zero).