RIP for RPI? Economist says measure is flawed and consumer price index should be replaced by CPIH

first_img RIP for RPI? Economist says measure is flawed and consumer price index should be replaced by CPIH More From Our Partners Florida woman allegedly crashes children’s birthday party, rapes teennypost.comRussell Wilson, AOC among many voicing support for Naomi Osakacbsnews.comSupermodel Anne Vyalitsyna claims income drop, pushes for child supportnypost.comBrave 7-Year-old Boy Swims an Hour to Rescue His Dad and Little Sistergoodnewsnetwork.org‘Neighbor from hell’ faces new charges after scaring off home buyersnypost.comA ProPublica investigation has caused outrage in the U.S. this weekvaluewalk.comNative American Tribe Gets Back Sacred Island Taken 160 Years Agogoodnewsnetwork.orgAstounding Fossil Discovery in California After Man Looks Closelygoodnewsnetwork.orgPolice Capture Elusive Tiger Poacher After 20 Years of Pursuing the Huntergoodnewsnetwork.org Tags: NULL An influential economist has told the government it should scrap the measures of inflation that it currently uses to influence public sector pay rises, train fares, and even government bonds.The consumer price index (CPI) should be replaced as the headline measure of inflation by a new one called CPIH, which includes owner-occupied housing costs, the Institute for Fiscal Studies’ director Paul Johnson said.Johnson also said the retail price index (RPI) measure was flawed.Certain complications could arise from any change as the UK government still issues some debt linked to RPI – index-linked gilts or “linkers”. Johnson said that current contracts should stay the same, yet his report recommended a change from hereon and found that the state lost £2bn a year from paying more interest than would be the case with an improved measure.“They [the Office for National Statistics] should make it clear that the RPI is not fit for purpose and should not be used except where existing legal contracts – for example index-linked gilts – demand it,” Johnson said.A spokesperson for Unite told City A.M. yesterday that the union had concerns over the fairness of the recommendation because RPI includes rental prices.“RPI better reflects where many people’s finances are. If you’re going to calculate people’s wages on the basis of CPIH, you’re going to be excluding a big proportion of the population,” he said. Ad Unmute by Taboolaby TaboolaSponsored LinksSponsored LinksPromoted LinksPromoted LinksYou May LikeMisterStoryWoman Files For Divorce After Seeing This Photo – Can You See Why?MisterStoryUndoHero WarsAdvertisement This game will keep you up all night!Hero WarsUndoMaternity WeekA Letter From The Devil Written By A Possessed Nun In 1676 Has Been TranslatedMaternity WeekUndoThe No Cost Solar ProgramGet Paid To Install Solar + Tesla Battery For No Cost At Install and Save Thousands.The No Cost Solar ProgramUndoFungus EliminatorIf You Have Toenail Fungus Try This TonightFungus EliminatorUndoMoneyPailShe Was A Star, Now She Works In ScottsdaleMoneyPailUndoBeverly Hills MDPlastic Surgeon Explains: “Doing This Every Morning Can Snap Back Sagging Skin” (No Creams Needed)Beverly Hills MDUndoThe Chef PickElisabeth Shue, 57, Sends Fans Wild As She Flaunts Age-Defying FigureThe Chef PickUndoLux & LushAfter 220 Years Two Brothers Finally Found The Oak Island TreasureLux & LushUndo Express KCS center_img Share whatsapp Thursday 8 January 2015 8:56 pm whatsapp Show Comments ▼last_img

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