Forum for former BBC staff

Forum for former BBC staff
http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl >> Pensions >> Future of RPI http://www.ex-bbc.net/cgi-bin/yabb/YaBB.pl?num=1579360175 Message started by Knocking On on Jan 18^th, 2020, 3:10pm

Title: Future of RPI
Post by Knocking On on Jan 18^th, 2020, 3:10pm

I see that the Chancellor has announced that a consultation on the shortcomings of RPI which was due to launch this month will launch on Budget day (11th March).

The consultation will take six weeks until April 22nd that is, and the Gov will respond before the summer recess.

Now I wonder what the response will be?

I think our upcoming April rise will be the final one based on RPI.

There has been talk of also scrapping CPI and inventing a new measure altogether for the purposes of increasing pensions only.
I did read about it a while ago but unfortunately cannot remember where.

Title: Re: Future of RPI
Post by JonW on Nov 26^th, 2020, 9:47am

Yesterday the Chancellor announced that RPI was to be phased out over the next 10 years as a yield on U.K. gilts.
Also it seems that student loans for example will charge interest of CPI rather than RPI.

So far no mention I have seen re. pensions.
If RPI is no longer tabulated and published , how can it be used as a measure of inflation for anything or just a matter of selective use?
Clarification needed.

Title: Re: Future of RPI
Post by Dickie Mint on Nov 28^th, 2020, 6:11pm

Quite an informative piece on the BBC website.

Here's an interesting bit:

Quote:

As a result, in 2030 RPI is likely to be aligned with another, newer, measure of inflation called CPIH, which is the Consumer Prices Index plus housing costs. This is generally lower, often by about 0.8%, although the gap is currently narrower.