In March 2019, UK Statistics Authority recommended to the Chancellor that the shortcomings of the RPI be addressed by bringing the methods and data sources of CPIH into it.
Today The Authority and HM Treasury have launched a joint Consultation on the timing and method of bringing CPIH methods and data sources into the RPI.
HM Treasury will be consulting on the appropriate timing for the proposed changes to the RPI to take place while the UK Statistics Authority will consult on how to make its proposed methodological changes to the RPI in a way that follows best statistical practice.
The consultation will run from today – 11 March – until Wednesday 22 April.
Commenting, the Chair of the UK Statistics Authority Sir David Norgrove said:
“The role of the UK Statistics Authority is to promote and safeguard official statistics.
“I, my predecessors and successive National Statisticians have been clear that the RPI is not a good measure, at times significantly overestimating inflation and at other times underestimating it. However, the RPI is unique as we need consent from the Chancellor to make certain changes, such as the one we have proposed.
“We are seeking feedback from the widest range of users on our proposed method of bringing the methods and data sources of our most comprehensive inflation measure, CPIH, to the RPI.”
ENDS
Notes to Editors
The consultation page is available here
Today’s letter (11 March 2020) from Sir David Norgrove to Lord Forsyth is available here
The UK Statistics Authority’s previous statement on the future of the RPI, published in September, is available here
A previously published article, setting out the shortcomings of the Retail Prices Index is available here
The full recommendations from the UK Statistics Authority to the Chancellor can be found here