Consultation on RPI/CPI changes delayed
Judged to be to be a “poor measure of inflation” by the UK Statistics Authority (UKSA), its view is that before the Retail Prices Index (RPI) is scrapped, it should be aligned with a variant of the Consumer Prices Index which includes owner-occupier’s housing costs (CPIH).
Although the Government rejected the proposal to remove RPI, it agreed to consult on whether to align CPIH with RPI and the timing of this. It confirmed that no change will be implemented for five years (before February 2025). The Government also confirmed that its objective is for CPIH to become its headline measure over time but was silent on whether it might start to issue CPI-linked gilts.