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Release: The Reconcilliation of the Differences Between the Consumer Price Index and the Implied Price Deflator, 2012

Released: 20 March 2012

Contact

Richard Campbell

Prices

cpi@ons.gsi.gov.uk

Telephone: +44 (0)1633 456900

Categories: Prices, Output and Productivity

Frequency of release: Annually

Language: English

Geographical coverage: UK

Geographical breakdown: UK and GB

In this release

The Consumer Prices Index (CPI) is the preferred measure of inflation used in the application of monetary policy by the Bank of England. Within the System of National Accounts, and subsequently the ESA, the preferred measure of inflation is the Implied Price Deflator (IPD). Historically, the indices have behaved broadly similar, however since around 2007 Q4 the divergence in the indices has increased and become more volatile. The plan for this article is to cover the conceptual and scope differences between the CPI and Household Final Consumption Expenditure Implied Price Deflator. There will be an empirical analysis on how and why the two indices differ over time.

The reconcilliation of the differences between the Consumer Price Index and the Implied Price Deflator, 2012 (344.9 Kb Pdf)

Content from the Office for National Statistics.
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