RPIX is a measure of inflation in the United Kingdom, equivalent to the all items Retail Price Index (RPI) excluding mortgage interest payments. The United Kingdom of Great Britain and Northern Ireland, commonly known as the United Kingdom, the UK or Britain,is a Sovereign state located CPI redirects here For other uses see CPI (disambiguation. A consumer price index ( CPI) is a measure of the average price of consumer
It was the UK's target rate of inflation from October 1992 to December 2003. From June 1997, the Bank of England was given the task of setting interest rates to meet an inflation target of 2. The Bank of England (formally the Governor and Company of the Bank of England) is a state-owned institution and the Central bank of the United Kingdom 5 per cent on the RPIX measure.
Mortgage interest payments were excluded from the inflation target because otherwise the Bank's behaviour would be distorted. Any rate rise from the Bank, aimed at bringing inflation lower, automatically has the side effect of raising people's mortgage interest payments, therefore causing higher inflation on any broad measure such as RPI. Targeting RPI would thus create a vicious circle of higher rates, something avoided by using RPIX as the target.
In December 2003 the Bank's target measure was changed to the Consumer Prices Index, or CPI, and the target was set at 2 per cent. CPI redirects here For other uses see CPI (disambiguation. A consumer price index ( CPI) is a measure of the average price of consumer
The RPIX continues to be published each month by the Office for National Statistics (ONS). The Office for National Statistics (ONS is the executive office of the UK Statistics Authority, a non-ministerial department which reports directly
See also
Consumer price index, which provides an international overview
External links
CPI redirects here For other uses see CPI (disambiguation. A consumer price index ( CPI) is a measure of the average price of consumerDapyx Software network: MP3 Explorer | Ebook Manager | Zenithic