CPI stands for Consumer Price Index, while the full meaning of RPI is the Retail Price Index. They are two economic measures used to determine inflation, but they are different in several aspects. The CPI and RPI are calculated with the use of distinguished tools, and they have different values. The consumer price index is a means of calculating the inflation rate by taking measures on the average price of goods and services bought by the consumers.
On the other hand, the Retail Price Index is the measure of determining inflation on the basis of the change in the cost of retail goods and services. CPI and RPI also differ in terms of the items they take into consideration. RPI takes some items such as mortgage interest payment, house depreciation, council tax, and building insurance. Meanwhile, CPI does not take these into consideration, but it exclusively takes some financial services, as in the stockbrokers' fee into consideration.
CPI and RPI are the acronyms for Consumer Price Index and Retail Price Index respectively. Both CPI and RPI are economic parameters which are used to determine the inflation. Although, they are used for the same reason, but they are different from each other. CPI is an economic measure to determine the inflation by estimating on an average basis of the various price of goods and services in the market.
This is done by proper monitoring of the change in price of goods and services for different time interval. RPI is used to determine the change in the price of goods and services by measuring the change in the cost of retails goods and services. Another notable difference is that, CPI does not totally measure the change in the price of all goods and services being purchased by people. RPI, on the other hand, captures effectively various services and goods that are ignored by CPI.
The RPI is the retail price index, which encompasses the cost of housing, home mortgage interest, and council tax. The RPI measures inflation by the retail price of items over time, and it is measured by combining price quotes on many of the same articles and an average day out over 12 months. The difference between the two the CPI, which is the consumer price index encompasses charges for doctors, drugs, transportation fees, fuels, clothing, and shelter.
The CPI is calculated by taking a bucket full of costs for them to get up one assumes up with us in the thing individual items as mentioned before, adding them up and averaging them. The CPI is calculated every month, and it tells us what the percentage is of inflation for that 30 days. However, it does not measure things like savings and investments, which is also paid out of your income. The difference between the CPI and the RPI would be what the consumer pays as opposed to what is charged for specific items.