Chancellor to consult on aligning CPIH methods into RPI

Last week, the Chancellor of the Exchequer, Sajid Javid, announced his intention to consult on whether to bring the methods in CPIH into RPI between 2025 and 2030, effectively aligning the measures. The announcement was made in a letter to Sir David Norgrove (PDF), who chairs the UK Statistics Authority UKSA).

In February 2019, the then National Statistician John Pullinger concluded that the current position regarding RPI was unsatisfactory and put options for its future to the UK Statistics Authority Board.

In March, Sir David wrote to the previous Chancellor of the Exchequer, recommending that the publication of the RPI be stopped at a point in future. He proposed that in the interim, the shortcomings of the RPI should be addressed by bringing the methods of the CPIH into it.

UKSA will consult on the method of doing so but needs consent from the Chancellor to make any changes.

In a statement from UKSA, Sir David, said that while he welcomed the development, he regretted that no change will occur before 2025.

The RSS will respond to the consultation, which is expected in the New Year, with the Society's response being co-ordinated by its National Statistics Advisory Group.

 

 

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