The Office for National Statistics (ONS) has decided to retain the way the retail prices index(RPI) is calculated after a consultation with the industry.
Instead, it has recommended a new additional inflation index should be created to meet international standards. However, the existing RPI will continue to be used for the uprating of private sector pensions. The Treasury also confirmed it would use the current RPI measure for calculating the return on both old and new index-linked bonds. Its decision means that from March 2013, the ONS will publish a new version of the RPI alongside the existing one. The new index will use the same formula as the CPI for calculating average prices, meaning this measure will usually rise more slowly...
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