Understanding Inflation: Prices, Pay & the CPI

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About Course

Find out what inflation really means, how the Office for National Statistics measures it, and what the CPI, CPIH and RPI figures in the news are. You will practise the percentage-change maths behind inflation and learn how to judge whether a pay rise or savings rate keeps up with rising prices.

Tutwoo is an independent learning provider. This course gives general information to build money and maths skills. It is not financial advice and is not an accredited qualification.

© 2026 Tutwoo UK Limited. This course was created in-house by Tutwoo and is our original work. It is for your own learning only: please do not copy, share, record or resell it.

What Will You Learn?

  • Explain inflation and the 12-month rate in plain English
  • Understand the difference between CPI, CPIH and RPI
  • Calculate percentage price changes step by step
  • Work out whether pay or savings are rising in “real terms”

Course Content

Course Lessons

  • What is inflation?
  • How inflation is measured: CPI, CPIH and RPI
  • The maths: percentage change and real terms

Sources & Further Reading
The official guidance this course is based on.

Final Assessment

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