What does RPI - X exclude?

The term RPI, or Retail Price Index, is a measure used to assess inflation by looking at the changes in the price of a basket of consumer goods and services over time. It is important to understand what RPI - X, which is a variant of the RPI, is designed to account for in its calculation.

RPI - X specifically excludes mortgage interest payments from its calculations. This is significant because mortgage payments can fluctuate due to changes in interest rates, and excluding them helps to provide a clearer picture of underlying inflation by focusing on more stable consumer prices. By doing so, RPI - X aims to reflect the true cost of living more accurately, without the volatility introduced by the housing market.

In terms of the other options, housing costs are not excluded since they can encompass other housing-related expenses besides mortgage payments, consumer prices form the basis of the RPI itself, and government fees might be included or considered depending on the specific goods and services tracked by RPI - X. Thus, the accurate exclusion in RPI - X is specifically the mortgage payments, differentiating it from the standard RPI metric.