Chart of the day: UK inflation
Of all of the inflation indices the ONS (Office for National Statistics) in the UK uses, the RPI data are the most comprehensive. This particular series runs back to 1948 and is use in all manner of contracts, pension schemes, what have you.
“The Retail Prices Index (RPI) is the most familiar general purpose domestic measure of inflation in the United Kingdom. It is available continuously from June 1947. The Government uses it for uprating of pensions, benefits and index-linked gilts. It is commonly used in private contracts for uprating of maintenance payments and housing rents. It is also used for wage bargaining.”
-UK National Statistics website
Above is the complete data series going back to 1948, measuring percentage change in inflation y-o-y. For most other G-7 economies, the inflation numbers of the 1970s (twice peaking over 20%) would be horrific. Certainly, the United States never experienced anything like this. Only German, with its hyper-inflation during the Weimar Republic knows the detrimental side effects of inflation better.
Right now, RPI is running at a rather heady 4.3% annual pace.
This post is part of my chart of the day series.