RPI inflation rate drops to 3.6%


Cheaper petrol and a slower rise in food prices helped cut the rate of inflation in February.


Under the Retail Prices Index — the measure favoured by union negotiators — the annual rate of inflation was down to 3.6% in February against 4.0% the previous month.


Under the CPI measure — the measure favoured by the government — inflation was down to 2.7% from 3.0%, while the new CPIH measure, which includes some housing costs, was down to 2.5% from 2.7%.


Each March, the Office for National Statistics updates the basket of goods and services used to calculate inflation to ensure that it is representative of consumer spending patterns.


This year sees quiche in and the pork pie out of the basket. Other food items added to the 2018 basket are pre-prepared mashed potato and a punnet of raspberries. Meanwhile, Edam cheese, the pasty, and peaches and nectarines have been removed. 


An action camera has been added as has a digital media player. And the consumers’ penchant for bigger TV screens has seen the addition of 39- and 40-inch TVs which have replaced three smaller-sized TV screens in the basket.


“While we add and remove a number of items each year, the overall change is actually quite small,” said ONS senior statistician Philip Gooding. ukconsumerpriceinflationbasketofgoodsandservices/2018


https://www.ons.gov.uk/economy/inflationandpriceindices/bulletins/consumerpriceinflation/february2018

https://www.ons.gov.uk/economy/inflationandpriceindices/articles/ukconsumerpriceinflationbasketofgoodsandservices/2018