RPI Calculator


About RPI Calculator (Formula)

The RPI (Retail Price Index) Calculator is a tool used to calculate the change in the general price level of goods and services over time based on the Retail Price Index. The Retail Price Index is a measure of inflation in an economy, indicating how prices of a representative “basket” of goods and services have changed over a specific period. The formula for calculating RPI is as follows:

RPI = (Current Cost of Basket / Base Year Cost of Basket) × 100


  • RPI: The Retail Price Index, representing the change in price levels.
  • Current Cost of Basket: The total cost of the representative basket of goods and services in the current period.
  • Base Year Cost of Basket: The total cost of the same representative basket of goods and services in a chosen base year.

The resulting RPI value is a percentage that indicates the change in price levels relative to the base year. A higher RPI indicates inflation (rising prices), while a lower RPI indicates deflation (falling prices).

The RPI Calculator is used by economists, policymakers, and businesses to monitor and analyze changes in the cost of living and inflation rates. It helps individuals understand the purchasing power of their money and assists policymakers in making informed decisions about economic policy.

It’s important to note that while the RPI was widely used, many countries have transitioned to using other inflation measures, such as the Consumer Price Index (CPI), due to perceived limitations of the RPI. The calculation and interpretation of RPI may vary based on regional practices and data sources.

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