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Consumer prices index meaning
Published by a LexisNexis Pensions expert
What does Consumer prices index mean?
An inflation index used in contracts and public law to uprate sums over time. In legal drafting it commonly appears in rent review clauses, price adjustment provisions, long‑term service agreements, and pension or maintenance uprating, where payments track movements in the index.
In the UK, the Consumer Prices Index (CPI) is compiled and published monthly by the Office for National Statistics. It is the main measure of domestic inflation for monetary policy: the bank of england’s remit is to achieve 2% CPI inflation. CPI is cited in various UK statutes and statutory instruments for uprating benefits and pensions, but its methodology is set by the ONS rather than prescribed in legislation. Parties should specify the exact series (for example, “CPI All Items, UK”), the timing of measurements, and a fallback if the series is revised or discontinued. Note the distinction from CPIH (which includes owner‑occupiers’ housing costs) and from RPI; these indices can produce materially different results.
Usage is consistent across England & Wales, Scotland and Northern Ireland. In Ireland, “CPI” generally refers to the Central Statistics Office’s national Consumer Price Index; for EU/ECB purposes the Harmonised Index of Consumer Prices (HICP) is used.
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View the related News about Consumer prices index
NEWS
England and Wales PI & Clinical Negligence weekly update: whiplash tariff increase, key RTA/employer’s liability and disclosure rulings, CPRC minutes, DHSC health information standards—27 March 2025
In this issue: Road traffic accidents Employer’s liability Evidence and disclosure Civil procedure rule committee minutes Other PI and Clinical negligence news LexTalk®PI & Clinical Negligence: a Lexis®Nexis community Daily and weekly news alerts LexisNexis® Webinars Useful information Road traffic accidents Draft regulations introduced to increase whiplash compensation tariffs The Ministry of Justice has presented the draft Whiplash Injury (Amendment) Regulations 2025 to Parliament, suggesting a 15% uplift to the fixed-tariff awards for whiplash lasting up to two years. Subject to parliamentary approval, the revised figures will take effect for injuries sustained on or after 31 May 2025. The adjustment reflects Consumer Prices Index movements since 2021 and builds in an inflation cushion through to 2027. The 2021 tariff will continue to govern accidents before 31 May 2025. See: LNB News 21/03/2025 32 and LNB News 21/03/2025 22. Court allows the Commissioner of the Police for the Metropolis to be added...
27 March
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NEWS
Deputy Pensions Ombudsman: CPI, not RPI, where no salary increase in calendar year; backdated 2021 pay agreed and paid in 2022 did not alter outcome (Mr E, CAS-110742-Z1H2)
Original news Mr E (CAS-110742-Z1H2)—25 June 2025 Summary The Deputy Pensions Ombudsman dismissed a grievance regarding pension upratings in this matter. The Scheme’s approach reflected the proper reading of its governing rules. In 2022, the complainant received a retrospective pay rise covering the 2021 calendar year. Those provisions were explicit and left no room for doubt or alternative meanings. Where no pay rise falls within a calendar year, a Consumer Prices Index (CPI) uplift is to be applied under the Scheme. Accordingly, the complaint was not upheld. This outcome highlights the importance of applying a pension scheme’s rules correctly and consistently. What were the facts? Mr E participated in the Unite Pension Scheme (the Scheme)...
29 October
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