Top U.K. Statistician Says RPI Inflation Gauge Beyond Saving
- Controversial measure is used for inflation-linked gilts
- Retail prices index stripped of its standard mark in 2013
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The U.K.’s most senior statistician has a message for those calling for a reboot to improve the retail prices index -- it is not, and never will be, a good measure of inflation.
National Statistician John Pullinger said the RPI has long overstated inflation and it’s problems aren’t limited to the Carli formula used in its calculation. There are also shortcomings in its approach to housing costs and weighting.