Which of the following is NOT one of the ONS's three main measures of inflation?

• A. CPI
• B. CPIH
• C. GDP Deflator
• D. RPI

Answer: (C)

The key idea here is knowing which indices are used to track inflation for households in the UK. The main measures are the Consumer Prices Index (CPI), the CPI including owner-occupiers’ housing costs (CPIH), and the Retail Prices Index (RPI). These focus on changes in the prices of goods and services bought by households. The GDP deflator, on the other hand, is a broader macroeconomic price measure that reflects price changes for all domestically produced goods and services in the economy, not just consumer purchases. It’s used to convert nominal GDP to real GDP, not to gauge household inflation. So the GDP deflator isn’t one of the ONS’s three main inflation measures.