Weighted Index Number

Item2000 Index

Pasta 100Bread 100Potatoes 100Chips 100

Weighted Index Number

Item2000 Index

2003 Index

Pasta 100 105Bread 100 98Potatoes 100 103Chips 100 101

Weighted Index Number

Item2000 Index

2003 Index Weighting

Pasta 100 105 23Bread 100 98 10Potatoes 100 103 6Chips 100 101 15

54

Weighted Index Number

Item2000 Index

2003 Index Weighting

Pasta 100 105 23 2415Bread 100 98 10 980Potatoes 100 103 6 618Chips 100 101 15 1515

54 5528

Weighted Index Number

Item2000 Index

2003 Index Weighting

Pasta 100 105 23 2415Bread 100 98 10 980Potatoes 100 103 6 618Chips 100 101 15 1515

54 5528

102.4

Retail Price IndexWhat is it used for?Measures of inflation are vital tools for economists, business and government. Wage agreements, pensions and changes in benefit levels are often linked directly to the RPI.

How is the RPI calculated?The RPI is often described in terms of a shopping basket containing some 650 goods and services, chosen as indicators of price movements for a range of similar items.

Who gathers the prices?Prices are collected in two ways. The local price collection is carried out by a market research firm who collect over 130,000 prices per month. Staff collect a further 10,000 prices centrally each month.

Retail Price IndexWhere are prices collected?Random sampling of locations was introduced in 1995. 150 shopping areas or out of town retail parks areas are selected for the price collection each year.

Are all items represented equally?No. The RPI is a weighted index - for example, since most people spend far more on electricity than on processed fruit, a price rise for electricity would have more effect than a similar-sized one for processed fruit.

Are all households' spending patterns represented in the RPI?No pensioner households and high-income households are excluded.

Retail Price Index

1987

1988

1989

1990

1991

1992

1993

1994

1995

1996

1997

1998

1999

2000

2001

2002

2003

2004

100

103

111

120

130

136

138

141

146

150

154

160

163

167

171

173

178

183

Retail Price Index

Standard Population

Age Group Number Fraction Standard Population0-18 2500

19-40 500041-60 4000

61-100 8500

20000

Standard Population

Age Group Number Fraction Standard Population0-18 2500 2500/20000

19-40 5000 5000/2000041-60 4000 4000/20000

61-100 8500 8500/20000

20000 0

Standard Population

Age Group Number Fraction Standard Population0-18 2500 2500/20000 125

19-40 5000 5000/2000041-60 4000 4000/20000

61-100 8500 8500/20000

20000 125

Standard Population

Age Group Number Fraction Standard Population0-18 2500 2500/20000 125

19-40 5000 5000/20000 25041-60 4000 4000'20000 200

61-100 8500 8500/20000 425

20000 1000

Standardised Death Rate

Population of Town A

Deaths in Town A

Standard Population of whole country

2500 8 3005000 12 2004000 7 3508500 124 150

20000 1000

Standardised Death Rate

Standardised Death Rate

Standardised Death Rate

Standardised Death Rate

Standardised Death Rate

Population of Town A

Deaths in Town A Death Rate per 1000

Standard Population of whole country

Deaths per 1000 of standard population

2500 8 (8/2500)*1000 = 3.2 300 (3.2/1000)*300 = 0.965000 32 6.4 200 1.34000 42 10.5 350 3.78500 326 38.4 150 5.8

20000 408 1000 11.8

Standardised Death Rate for Town A is 11.8 deaths per 1000 people

Standardised Death Rate

Population of Town A

Deaths in Town A Death Rate per 1000

Standard Population of whole country

Deaths per 1000 of standard population

2500 8 (8/2500)*1000 = 3.2 300 (3.2/1000)*300 = 0.965000 32 6.4 200 1.34000 42 10.5 350 3.78500 326 38.4 150 5.8

20000 408 1000 11.8

Standardised Death Rate for Town A is 11.8 deaths per 1000 people

The crude death rate is 408/20000*1000 = 20.4

Standardised Death Rate

Population of Town A

Deaths in Town A Death Rate per 1000

Standard Population of whole country

Deaths per 1000 of standard population

2500 8 (8/2500)*1000 = 3.2 300 (3.2/1000)*300 = 0.965000 32 6.4 200 1.34000 42 10.5 350 3.78500 326 38.4 150 5.8

20000 408 1000 11.8

Standardised Death Rate for Town A is 11.8 deaths per 1000 people

The crude death rate is 408/20000*1000 = 20.4

Standardised Death Rate

Population of Town A

Deaths in Town A Death Rate per 1000

Standard Population of whole country

Deaths per 1000 of standard population

2500 8 (8/2500)*1000 = 3.2 300 (3.2/1000)*300 = 0.965000 32 6.4 200 1.34000 42 10.5 350 3.78500 326 38.4 150 5.8

20000 408 1000 11.8

Standardised Death Rate for Town A is 11.8 deaths per 1000 people

The crude death rate is 408/20000*1000 = 20.4