United Kingdom Consumer Price Index (CPI) y/y

The Consumer Price Index (CPI) y/y reflects changes in prices for 700 main consumer goods and services, in the specified month compared to the same month of the previous year. Information on prices is collected from monthly telephone surveys of 20,000 sales points in 140 locations throughout the Great Britain.

The basket of goods and services is reviewed at least once a year to reflect actual economic, technological and cultural patterns. Fixed weights are applied to changes in prices for each item in the list (the influence of the basket elements on the final index reflects their importance for a typical household's budget). If a certain brand of products disappears from the assortment of stores, the brand closest to it in terms of price and quality is chosen to preserve the representativeness.

The CPI calculation does not include owner occupiers' housing costs (taxes, technical work, maintenance) and tax collections. However, utility payments, small house repairs and maintenance of utility systems are included in the index calculation.

The index is seasonally adjusted to enable an objective month-to-month monitoring of price changes. The consumer price index is the key indicator of inflation and the economy state in the UK. This index affects interest rates, tax benefits, and is used in the adjustment of wages and government benefits, etc. As a measure of inflation, the CPI has a strong impact on the pound sterling quotes. The indicator growth may have a positive effect on the British pound.