The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.
As part of the Comprehensive Spending Review today (25 November), the government announced that the methods and data sources of CPIH would be brought into RPI in February 2030, after the date of the maturity of the final specific index-linked gilt that year. While the Treasury had consulted on making this change earlier, in the response published today chancellor Rishi Sunak said he would withhold the consent necessary before 2030 in order to minimise the impact on the holders of index-linked gilts. Nevertheless, the government has refused to offer compensation to index-linked gilt ho...
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