Measuring Inflation: Understanding Key Indices and Personal Experiences

The video tutorial explains how inflation is measured, focusing on the Consumer Price Index (CPI) and Retail Prices Index (RPI) in the UK. It discusses the calculation of these indices, the role of the Office for National Statistics, and the importance of weighted averages based on household expenditure. The tutorial highlights the differences between CPI and RPI, particularly regarding housing costs, and provides a historical perspective on inflation trends. It emphasizes the variability of inflation experiences across different households and regions.

Why is it important to understand how inflation is measured?

What are the key differences between the Consumer Price Index (CPI) and the Retail Prices Index (RPI)?

How did the financial crisis affect the RPI and CPI differently?

What was the overall percentage change in prices according to CPI and RPI from 1989 to 2014?