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The Retail Prices Index (RPI) measures the price change of goods and services for household consumption in the UK. It includes items like food, clothing, transport fares, and more. An increase in the RPI indicates inflation, while a decrease indicates deflation. The headline figure in the RPI report shows the index's percent change from previous quarters. The UK government switched to using the Consumer Price Index (CPI) after 2003 to set inflation targets, resulting in a 0.9 percentage point difference between the two indices.