The retail prices index should not be brought in line with consumer prices index, AXA Investment Managers has argued, ahead of a decision by the Office for National Statistics later this week.
The National Statistician Jil Matheson will publish her recommendations on Thursday following a consultation on changing the way RPI is calculated, which could potentially remove the "formula effect" which has kept it 0.5-1% higher than its counterpart the consumer prices index for most of its history. RPI is predominantly calculated using an arithmetic mean, while CPI uses a geometric mean. AXA Investment Managers senior portfolio manager David Dyer (pictured) said the investment house would prefer no change because RPI is written into long-term financial contracts. Dyer said: "AX...
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