Can the Retail Prices Index be killed off? Should it be killed off and, if so, for what reason? Or is reform needed? A meeting is coming up (at the RSS in London, on 13 June, book here) to discuss the future of the RPI and the changes needed to all consumer price measures to keep them fit for purpose. Why not come and hear the views of John Pullinger, the UK’s National Statistician, and other experts?
The RPI has recently been subjected to a sustained bout of unfair criticism from politicians and commentators. Despite this, the judge in the recent BT pensions case deemed that the RPI had not “become inappropriate” and that BT had no grounds for moving a group of their pensioners to the CPI which gives generally lower upratings. The RPI is, therefore, still fit for purpose. This was a relief to me – I was the expert witness arguing in favour of the RPI – if not a surprise. The full story as to how we got to the situation where so many people (mostly, it must be said, economists and the powerful and self-interested trying to cut their costs) are doing the RPI down is yet to be told. The decision was important for the pensioners as their incomes would not be unjustifiably cut. It was also a good day for common sense, and for the RPI, one of the country’s longest-standing, most trusted and widely-used statistics. The Thales and BT rulings taken together provide food for thought for those who continue to damage the reputation of the RPI without looking beyond the mantras and sloppy headlines. Continue reading RPI: Still fit for purpose