Statisticians query CPI 'star billing' ahead of pensions link

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Leading UK statisticians are questioning government plans to link the state pension and other key benefits to the consumer prices index (CPI).

In a letter to the chair of the UK Statistics Authority, David Hand, president of the Royal Statistical Society (RSS), says CPI does not merit "sole star billing" and argues pensions linked to the retail prices index (RPI) are likely to perform better.     As part of plans to cut £40bn from public spending, the coalition government says from April next year, pension payouts and other benefits would rise in line with CPI instead of RPI. In his letter, Hand writes both indices "have drawbacks", but stresses the RSS has concerns over "the way in which CPI has over the years gained...

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