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 10.1% in July 2022, up from 9.4% in June. This is the highest rate on record, and the ONS estimates it is now higher than at any time since around 1982.

The RPI inflation rate was 12.3% in July 2022, up from 11.8% in June.

There was an increase in the CPI rate in most categories, food being by far the largest. There was also a large increase in prices for recreation and culture and hospitality.