Edexcel Economis, RPI or CPI?

I am resitting Edexcel Economics Units 2 and 3 in June of 2005. I haven't had any tuition since my last sitting of the exam. My question is, do we need to be using the RPI or CPI? I'm a bit confused as the CPI is the latest form of inflation measurement and I don't know which I am meant to be using.

Reply 1

-mb-

The CPI is the relevent measure, it is the standardised European measure, and gives lower inflation values than RPI.

The Bank of England inflation target is now also set on CPI. (rather than on RPIX as on the past)

Reply 2

pkchips

but will we be asked, for example, to explain how the CPI is compiled like we were asked to explain how the RPI was compiled?

Reply 3

-mb-

Ah, okay.

Well, I am sure knowledge of CPI would be rewarded, but this syllabus: http://www.edexcel.org.uk/VirtualContent/25198.pdf
suggests that they are interested officially in RPI.

(Unit 3 specifies "Retail Price Index")

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