The RPI scandal has been a slow motion car crash since 2010. The nation’s most well-used and well-known statistic has been subjected to silly mistakes in production, weak and indecisive management, too much political influence and misuse, an overbearing economist mindset, more dogma than imagination, limited innovation, and mixed messages from those supposedly in control. This sad story with resulting confusion for users reflects a fundamental failure of governance. This blog provides a one-stop shop for anyone looking to understand the governance, or lack of it. The next chapter in this saga will come later this week with the publication of the House of Lords report into the RPI. Continue reading RPI – the background to the scandal
I can see why many individual British businesses with established exports to the EU want the country to stay in the single market. The UK’s departure from it will be a change and, while the future might or might not offer more trading opportunities, change diverts corporate attention and can be disruptive. That said, from a national perspective – UK plc – the statistics show that the single market has increasingly been operating against the economic interests of the UK as a whole. In that macro sense, looking at the data, the single market is bad news as it’s driving the country’s ever-widening trade balance in goods. Continue reading The UK’s “single market trade deficit”
The monthly release of the inflation figures (due tomorrow Wednesday 16th) is always a reminder of the futile attempts by ONS/UKSA to suppress the RPI. The RPI is the most popular statistic produced by the ONS (as measured by web hits, calls to ONS etc.) yet there’s no commentary on the RPI and the numbers do not appear in the 11 page press release. The breakdown of the RPI is hidden away in the back three pages of the 19 page data pack (just after the table that gives the rates for Lithuania, Slovakia and other EU states that the ONS presumably thinks are more interesting to users). To note the madness of this continuing practice, please find below a fairytale. Continue reading The king and his fish: the RPI fairytale
I spoke at an event about the Retail Prices Index (RPI) last week and made three points – that there is a misunderstanding about the formula effect, ONS is too influenced by economists’ ‘group think’ and weaknesses in governance. These can all be resolved easily, returning RPI to full use, if ONS and UKSA wants to. It was widely agreed that “the mess” had to be sorted out, and as the RPI cannot be killed off some modest changes to it are required. Continue reading The truth about the RPI – some brief comments
This is about a bad trend in some questionable data: the official data says that the UK has a huge balance of trade deficit in goods, it’s getting worse and the driving force behind the trend has been the growing deficit with the EU. True? Probably. This trade deterioration needs to be noted, diagnosed, discussed as part of the Brexit negotiations and reversed. Continue reading The UK’s trade deficit in goods
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 earnings figures are very important and politically sensitive, yet the trends are highly uncertain and poorly presented by ONS. The poor presentation by the ONS centres on the failure to remove compositional changes and present earnings growth on a like-for-like basis. This has not only led to an overly pessimistic view of what’s happening in the real world but means that political and media attention has been diverted from the real issues in the labour market.
The ONS published a welcome note yesterday updating the progress being made with statistics on the migration patterns of international students coming to the UK. It gave a fairly upbeat impression but really only laid bare how little we as a nation know about these students. New statistics are needed – and requiring all students to get a National Insurance Number would be a good start and might even be part of the post-Brexit changes. Lets hope that the ONS and UKSA Board are in there arguing for such changes. The article also had a graphic that was misleading and below the standards that we might expect from the ONS. Continue reading International student migration – ONS update
The ONS and its governing board, UKSA, does not lie but on migration their statements stretch credibility and do nothing to boost public trust in data. The ONS needs to change its stock press briefing that the passenger survey is “the best available source” for migration data. It is true but only because it does not seek a better source. It’s like telling a cancer patient that an x-ray is best when we know the (more expensive) scan is better – it might help at the margin in some cases but it’s not what’s needed. It is damaging to give such a deeply misleading impression of the data’s veracity. For the same reason, the ONS needs to stop publishing confidence intervals on migration data.
The UKSA needs to say it as it is – migration numbers are not fit for purpose and a new system (and more money) is needed to collect decent numbers. Brexit will require better data so UKSA would no longer be saying anything radical. Pretending that the figures are OK is not only a failure of its regulatory duty but provides cover for a Home Office that really needs to get on with what’s required – the not so tricky job of counting people crossing borders. Continue reading ONS: Time to be frank on migration
The recent political coming and goings (the EU referendum, the arrival of a new Prime Minster and Labour’s travails) has seen a period of unusual attitudes to facts. More people seemingly want information and yet the (accurate) use of facts by politicians, some elements of the media and quite a few people has fallen to new lows. Experts are being rubbished, institutions’ reputations are being damaged, and the media is accused of being biased, prompting discussion of a post-truth society. There is much talk of a fractured Britain as technology and globalisation have hastened economic disruption affecting many livelihoods.
This note sets out a few steps – go local, kill the average, be open, do good research, un-spin and tell good stories – that the statistics world might take to help people reconnect with reality and help policy makers understand what might be needed if we are to establish a more sensible approach to debate and policy. It has much in common with the Data Manifesto published by the Royal Statistical Society two years ago. Continue reading Post-truth, post-Brexit statistics