The RPI is a similar measure to the CPI and since the introduction of the CPI in 1996, the RPI has lost importance among traders and analysts. Both indices measure similar data, but differ in the populations they target and in which products they compute in their calculation.
Like the CPI, the RPI is a measure of inflation. An increase in the RPI in a short period of time can be interpreted as a sign of inflation in the UK.
A decrease in it in a short period of time may be a sign of possible deflation.
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