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 10.5% in December 2022, down from 10.7% in November.  October’s figure of 11.1% was the highest rate recorded since the data series began in 1997. The ONS estimated that CPI in October was higher than at any time since October 1981.

The RPI inflation rate was 13.4% in December 2022, down from 14.0% in November. October’s figure of 14.2% was the RPI’s highest level since December 1980.

Transport (mainly motor fuels) made the largest downward contribution to the CPI inflation rate, followed by clothing and footwear and recreation and culture. This was partly offset by a few upward contributions, particularly restaurants and hotels.