The Retail Price Index (RPI) is a measure that examines the weighted average of prices of a basket of
consumer goods and services. The RPI is used to track price changes associated with the cost of
living. In the commercial property market leases are often granted with rent reviews occurring by
reference to the RPI (or occasionally the Consumer Prices Index) (normally on an upwards only
basis). Unlike the CPI Index, the RPI includes mortgage payments. The RPI was first introduced in
1947 and was for many years, the Government’s main measure of inflation. In 2003 the Government
announced that the UK inflation target would be based on the CPI, replacing the RPI for this purpose.