Government must commit to one indexation measure, says Lords committee

CPI or RPI

James Phillips
clock • 2 min read

The UK Statistics Authority's (UKSA) "refusal" to fix a long-standing error in the retail prices index (RPI) is "untenable" and demonstrates a need to commit to one measure of inflation.

An error made in 2010 in how the UKSA collects price data for clothing has led to RPI being 0.3 percentage points higher than it should be, the House of Lords' Economic Affairs Committee has concluded, arguing it amounted to a breach of the UKSA's statutory duty. In a report published today (17 January), the committee said the government should now switch to the consumer prices index (CPI) for all elements of policy, aside from where RPI is necessary for contractual reasons, such as RPI-linked gilts. It should also seek to move to a single general measure of inflation, and then decide...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

James Phillips
Author spotlight

James Phillips

Professional Pensions journalist from 2016-2022

More on Investment

Infrastructure: A good investment gone bad – and then good again?

Infrastructure: A good investment gone bad – and then good again?

'Infrastructure - a victim of a unique set of circumstances'

Darius McDermott
clock 02 May 2024 • 5 min read
Investment opportunities 'differ by client age group'

Investment opportunities 'differ by client age group'

‘Advisers should consider personal circumstances when it comes to investment’

Isabel Baxter
clock 02 May 2024 • 1 min read
Future of Investment Festival: Our specialist sessions for advisers

Future of Investment Festival: Our specialist sessions for advisers

Future-proofing advice, building sustainable portfolios, all things SDR

Professional Adviser
clock 02 May 2024 • 2 min read