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...
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