LIBF DipFA AFAI Practice Questions - LIBF DipFA Module 3 - Advanced Financial Advice Investment (AFAI) Exam

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How does the Consumer Prices Index including owner occupiers' housing costs (CPIH) fundamentally differ from the standard Consumer Prices Index (CPI)?

CPIH excludes volatile food and energy components whereas CPI includes them CPIH incorporates owner occupiers' housing costs (OOH) and Council Tax CPIH uses a geometric mean formula while CPI uses an arithmetic mean formula CPIH is calculated by the Bank of England whereas CPI is calculated by HM Treasury

Correct Answer:

CPIH incorporates owner occupiers' housing costs (OOH) and Council Tax

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