Consumer Price Index (CPI)
Consumer Price Index CPI in the United Kingdom remained unchanged at 108.50 points in December from 108.50 points in November of 2019. Consumer Price Index CPI in the United Kingdom averaged 79.32 points from 1988 until 2019, reaching an all time high of 108.50 points in September of 2019 and a record low of 48.40 points in January of 1988.
What is the Consumer Price Index (CPI)
The CPI is a measure of consumer price inflation produced to international standards and in line with European regulations. First published in 1997 as the Harmonised Index of Consumer Prices (HICP), the CPI is the inflation measure used in the government’s target for inflation. The CPI is also used for purposes such as uprating pensions, wages and benefits and can aid in the understanding of inflation on family budgets.
Why is inflation important
Keeping a healthy cash flow throughout your life is essential and one of the biggest risks to capital is inflation risk. It is important this is taken into account with our recommendations and considered when discussing your attitude to investment risk within our client meetings.
(Source: Trading Economics)