"The headline RPI rose 5.0% in June over a year ago, vs. 5.3% of May and 5.3% expected. "
Please could someone explain how those figures of 5.0% and 5.3% are reflected in the RPI table at:
In message , Dave writes
Take the number for June this year divided by June 2010, which gives an increase of 5%, and May this year divided by May 2010, which actually gives 5.2 on the numbers in the table you cite, but the difference from
5.3 is probably rounding.The month on month comparison is not the only or, probably, the best way of looking at the numbers (averages of a few months are certainly better), but it is the one the government always uses so it can say that it is consistent. If you look at the run of figures, what happened was that last year there was a rise in June, followed by a small fall in July; this year there was no rise in June; if there is no fall in July, the July headline figure will be 5.2. In other words, don't look at just one month's figure if you want to know the trend in what is happening. (If you have a payment tied to the change in the index, then the monthly number matters.)
Excellent - many thanks.
(I am looking at NS&I Savings).
It's a bit clearer on this month's CPI press release
Good - many thanks.
(I have now posted "RPI Question 2" - if you fancy that :-)
BeanSmart website is not affiliated with any of the manufacturers or service providers discussed here. All logos and trade names are the property of their respective owners.