ONS : Result of Consultation on RPI Calculation

10 January 2012 The Office for National Statistics has announced the result of their review into the RPI calculation methodology. This product is used as a key reference index for UK index-linked securities and derivatives as well as being the reference for some benefit increases in defined benefit pensions entitlement. The ONS have recommended that the calculation of the RPI remain unchanged : thus protecting the status of RPI-linked pensions and financial assets : whilst acknowledging the shortcomings in the methodology by adding the new RPIJ index based on geometric averaging (which is consistent with both the CPI and generally…

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ONS : Pre-Announcement of Consultation on RPI Calculation Methodology

19 September 2012 The Office for National Statistics has announced that the National Statistician will shortly be consulting (from 8 October to 30 November 2012) on updating the calculation methodology for the Retail Price Inflation index. This product is used as a key reference index for UK index-linked securities and derivatives as well as being the reference for some benefit increases in defined benefit pensions entitlement. Author: Martin Veasey © www.veaseyassociates.co.uk 2011 – 2018

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ONS : Consultation on CPI (inclusion of housing costs)

12 July 2012 The Office for National Statistics is consulting on the method for including owner occupier housing costs (OOHC) in a new and additional measure of consumer price inflation. This is important because the current statutory CPI does not capture this (whereas RPI does) and OOHC account for approximately 10% of household expenditure (UK National Accounts). There are a number of possible methods to capture OOHC; ONS propose to accomplish this by converting relevant expenditure into an equivalent rental cost for incorporation into the calculation. Inclusion of OOHC is not currently consistent with the general European Statistics framework and…

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ONS : UK Inflation Update September 2011

18 October 2011 UK inflation numbers just out from the Office of National Statistics: 12 months to end September 2011: Consumer Price Inflation came in at 5.2% (an increase from 4.5% last month) Retail Price Inflation came in at 5.6% (an increase from 5.2% last month) The figures are high and will form the basis of calculation for DB scheme benefit increases as at end September : compared to 4.2%/5.0% (CPI/RPI) for June and 4.1%/5.3% for March. Schemes calculating benefit increases at the end of December have so far seen prices increase by 3.5%/4.2% for the 2011 year to date,…

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