What is RPI-J?

RPI-J stands for the Retail Price Index, which is a measure of inflation that specifically incorporates the Jeavons method of calculating prices. This method is designed to provide a more accurate reflection of price changes for consumer goods and services by utilizing information about the changing quality and variety of products. The Jeavons method takes into account how the introduction of new products or the alteration of existing ones can affect prices, thus providing a nuanced view of inflation that is aligned with consumer behavior.

In contrast to other measures mentioned, RPI-J focuses on the standard RPI framework, but modifies how the data is analyzed to reflect these quality adjustments. This allows it to capture the changes in consumer expenditure that might not be evident in simpler calculations. Overall, RPI-J serves as an important economic indicator by depicting a more refined inflationary trend influenced by consumer choices.