Softening the blow

Eight out of 10 employers use the Retail Prices Index (RPI) as a benchmark for salary reviews, according to the Chartered Institute of Personnel and Development (CIPD). National Statistics define Retail Prices Index (RPI) as ‘an important domestic indicator of inflation in the UK which measures the average change from month to month in the prices of goods and services purchased in the UK.’ The Office of National Statistics (ONS) calculates RPI by collating the costs of thousands of goods people regularly buy, from basic goods to luxury and leisure items. In August 2009 the RPI stood at -1.3...