Reply to post: CPI vs RPI

300,000 BT pensioners await Court of Appeal pension scheme ruling

Thoguht Silver badge

CPI vs RPI

CPI was never intended as a means of measuring personal inflation, it was developed for comparing underlying inflation rates between different countries. One of the issues with it is that it doesn't include housing costs, which is why the CPIH measure (CPI plus housing) is a little better.

But the real problem is that personal inflation rates for older people are typically higher than for younger ones, mainly because they don't spend as much money on things that tend to get cheaper as time goes on, such as technology. RPI is therefore a better reflection of reality for pensioners, although it's still less than half of the estimated personal inflation rate that pensioners in some parts of the country are facing.

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