Speaking as a Landlord (only of one property but it counts :) ) I don't have a clause like that in the contract, however each year my agency looks at the state of the local rental market and recommends whether (and if so by how much) the rent should be increased. I normally take a quick look at the market myself to sanity check their figures.
When we know where market rents are we can look at the current rent and compare them. Once or twice prices have only risen a tiny amount and in that case we've left it unchanged. If not then we negotiate with the tenant and agree the price for the next year.
I am not a lawyer and you have not posted the actual wording of the agreement but it sounds like all your contract is doing is formalizing that process and establishing minimum and maximum bounds. Considering that the contract has ended at the point of renewal anyway then if inflation has gone crazy or rental prices have crashed or something then you or the landlord could simply either not renew and you find somewhere else or renegotiate the entire agreement.
What this clause does mean is that rather than negotiating you can just look at the RPI and know that that is the renewal offer. It doesn't sound like anything to worry about, and for people who don't like uncertainty (or don't like negotiating) it sounds like a good thing.
Keep in mind though that RPI is currently 1.9% so I would suggest trying to reduce that minimum threshold.