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Latest Average Earnings and Inflation Rate

Each month the Government (Office for National Statistics: ONS) report the Retail Prices Index and Labour Market Statistics which contains unemployment figures and Average Earnings.  The Inflation rate is the percentage change in the index compared with the same month one year previously and there are three measures of inflation most commonly referred to which are

The CPI and the RPI are compiled using the same underlying price data, based on a large and representative selection of around goods and services for which price movements are measured in randomly selected areas throughout the UK. To help ensure that the consumer prices index (CPI) and retail prices index (RPI) are representative of consumer spending patterns, the items that are priced in compiling the indices are reviewed each year.

Current Rates

RPI

The Retail Prices Index (RPI) "all items retail prices" index ("headline rate" or RPI inflation) is the most familiar measure of inflation. It considers the annual rate of increase in the prices of "all items" in the notional basket of goods and services bought by consumers. The Government uses it for uprating of pensions, benefits and index-linked gilts and it is widely favoured for wage bargaining

RPIX

The "all items excluding mortgage interest payments" (RPIX or "underlying") measure - as its name suggests - ignores the effect of changes in mortgage costs (mortgage interest payments)  when interest rates rise or fall. Until December 2003, this was the Bank of England's official target measure, used to guide the interest rate decision-making process.

CPI

  "consumer prices index"  is used as the Bank of England's official target measure which currently stands at 2 per cent and mainly used in the public sector. It excludes the effect of mortgage interest payments and - crucially - the impact of house price appreciation. The CPI excludes a number of the price movements measured by the RPI relating to housing costs, for example, council tax), and in particular to owner occupiers’ housing costs (including mortgage interest payments, house depreciation and buildings insurance). In addition, the CPI excludes the annual road fund licence and, from 2006, TV licences which are classified as taxes in the UK National Accounts, and Trades Union subscriptions which by convention are not part of household expenditure. The CPI includes university accommodation fees, foreign students’ university tuition fees, and unit trust and stockbrokers’ charges, none of which are included in the RPI.

2010 Inflation Rate Release Dates   
 

Tues 17 Aug 2010  for the July 2010 CPI/RPI figure

Tues 14 Sept 2010 for the Aug 2010 CPI/RPI figure

Tues 12 Oct 2010 for the Sept 2010 CPI/RPI figure

Tues 16 Nov 2010 for the Oct 2010 CPI/RPI figure

Tues 14 Dec 2010 for the Nov 2010 CPI/RPI figure

Tues 18 Jan 2011 for the Dec 2010 CPI/RPI figure

 
2010 Labour Market Statistics Release Dates   

Weds 11 August 2010 for the June Labour Market figures

Weds 15 September 2010 for the July Labour Market figures

Weds 13 October 2010 for the August Labour Market figures

Weds 17 November 2010 for the September Labour Market figures

Weds 15 December 2010 for the October Labour Market figures
 

 

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