Inflation: Key Economic Indicators

The Consumer Prices Index (CPI) is the main measure of inflation. It is produced in line with international standards and is the measure used for the Bank of England’s 2% inflation target. The Retail Prices Index (RPI) is no longer classified as a National Statistic as the way it is calculated does not meet international standards. It is included here as it is well-known and is the longest running measure of inflation.

The CPI inflation rate was 3.1% in September 2021, down from 3.2% in August.

The RPI inflation rate was 4.9% in September 2021, up from 4.8% in August.

The fall in the CPI rate was mostly driven by price falls in restaurants and hotels. Much of this will be due to last year’s Eat Out to Help Out scheme, which resulted in lower restaurant prices in September 2020. This increase was partially offset by upward contributions from other divisions, notably transport, furniture and household goods, food and non-alcoholic beverages.