Dictionary
/
Retail Prices Index (RPI)

Retail Prices Index (RPI)

An index published each month by the Office for National Statistics, which measures the level of retail prices in the UK. Cash flows on all index-linked gilts are linked to the RPI.

More terms

Xetra

A trading venue operated by the Frankfurt Stock Exchange.
Read more

Diversification

An investment strategy in which money is put into a variety assets.
Read more

index-linked gilts

Gilts where the dividends and principal repayments are related to movements in the Retail Prices Index (RPI). This is as opposed to a conventional gilt, where the dividends and principal repayments are fixed in nominal terms.
Read more

Annualised Rate of Return

The average annual return an investor sees over a set period of time.
Read more

Running yield

The annual interest payment (dividend) divided by the current market price of a bond.
Read more

Yield curve

A graphical representation of interest rates over time
Read more

Inflation

The increase in the prices of goods and services over time, and the process by which money loses its value.
Read more

Money weighted rate of return

Learn what Money Weighted Rate of Return or MWRR stands for in finance.
Read more

Forward pricing

Mutual funds are traded on a forward pricing basis, meaning the price you see will be different to the price you may trade at.
Read more

You’re just minutes away from commission-free investing

open an isa
When you invest, your capital is at risk

Freetrade is your gateway to commission-free investing. Join over 1.6 million users using the Best online trading platform, as voted at the British Bank Awards for six years running.

Accounts
Customer Support
Resources
Company
Important information

Freetrade does not provide investment advice and individual investors should make their own decisions or seek professional advice. The value of investments can go down as well as up and you may receive back less than your original investment. Freetrade is a trading name of Freetrade Limited, which is a member firm of the London Stock Exchange and is authorised and regulated by the Financial Conduct Authority. Registered in England and Wales (no. 09797821).

© 2025 Freetrade, All rights reserved. The Apple logo is a trademark of Apple Inc. App Store is a service mark of Apple Inc. Google Play and the Google Play logo are trademarks of Google LLC.

Follow us on