Guides to gilts and to using GiltIQ, written against the site's own data and pages.
Implied RPI is the annual inflation an index-linked gilt's real and nominal yields together imply, derived from two fitted curves at the gilt's own term, and it is a market price rather than a forecast and not the same figure as a published inflation rate.
A conventional gilt's gross yield is a cash return and an index-linked gilt's real yield is a return after the inflation the gilt is priced for, so the two are only comparable once the inflation between them is put back explicitly.
An index-linked gilt's cash coupon is its real coupon multiplied by the index ratio, and working one payment through from two index values to pounds shows exactly where every input comes from and which of them can move.
The UK Statistics Authority intends to bring CPIH's methods and data sources into the Retail Prices Index, a change HM Treasury says can legally and practically be made in February 2030 — and the announcement is a statement about how a series is constructed, not a forecast of what it will measure.
An index-linked gilt's clean price can be quoted with the inflation uplift inside it or with the uplift taken out, and the two figures differ by the index ratio — which is why the basis matters as much as the number.
Both kinds of index-linked gilt scale their coupon and redemption by the index ratio, and the difference between them is the indexation lag — which decides which month's RPI a payment points at, when that figure is published, and whether the quoted clean price has the inflation uplift inside it.
Implied RPI is the inflation a gilt's real and nominal yields together imply over its remaining life, which is a market price rather than a forecast and a different kind of number from the published RPI annual rate.
An index-linked gilt multiplies both its coupon and its redemption by the index ratio, the figure that records how far prices have risen since the gilt was first issued.
An index-linked gilt's coupon and redemption are scaled by the index ratio, so an index-linked rung's real income is stated in present-day terms and its cash grows with published inflation rather than staying fixed.
A nominal gilt fixes the pounds it pays while an index-linked gilt fixes their purchasing power, and comparing the two shows the inflation the market is pricing in as impl. RPI.
A guide to how an index-linked gilt turns a fixed real coupon into cash that moves with the Retail Prices Index, why an eight-month or three-month lag sits between the prices and the payment, and what the gilt does not do.
A reference to the est. marker GiltIQ puts against a projected index-linked coupon, what it means, what it does not mean, and how to tell a scaled figure from a projected one on a cash-flow table.