Retail Price Index

Retail Price Index

A measure of inflation that considers what people spend on staple goods and services. It is calculated by taking the average of changes in price to a basket of goods and services compiled by the appropriate government agency. The goods and services in the basket are weighted according to their perceived importance. The RPI was considered a primary tool in determining how people are experiencing inflation, but it has largely been superseded by the Consumer Price Index. It is primarily used today in the British news media.