cancel
Showing results for 
Search instead for 
Did you mean: 

Government to keep RPI inflation measure

8BKA
Pro
Posts: 295
Thanks: 80
Fixes: 4
Registered: ‎01-12-2016

Government to keep RPI inflation measure

Chancellor Sajid Javid has decided not to act on recommendations to change the Retail Price Index (RPI) measure of inflation, leaving consumers to face unfair price hikes.

 

https://www.moneyobserver.com/news/government-to-stick-widely-discredited-rpi-inflation-measure?utm_...

 

Brian A

8 REPLIES 8
Community Veteran
Posts: 5,424
Thanks: 1,268
Fixes: 3
Registered: ‎06-11-2014

Re: Government to keep RPI inflation measure

For a moment I was wondering why the government were interfering with the price of the RPi, aka Raspberry Pi... Funny

Community Veteran
Posts: 9,494
Thanks: 1,450
Fixes: 10
Registered: ‎02-08-2007

Re: Government to keep RPI inflation measure

Is this decision an advantage or disadvantage in respect of annual increases to pensions such as the state pension ?

8BKA
Pro
Posts: 295
Thanks: 80
Fixes: 4
Registered: ‎01-12-2016

Re: Government to keep RPI inflation measure

State pensions are increased by the Triple Lock  CPI ( Custard pie ) Average earning or 2.5 %

Private pensions most Final Salary are increased by the September RPI  ( published in middle of October )

Some telecommunication companies use RPI which is normally higher others use CPI

It would have been better if a new inflation measure had been introduced   

 

Brian A

 

jgb
Aspiring Pro
Posts: 145
Thanks: 100
Fixes: 1
Registered: ‎01-08-2007

Re: Government to keep RPI inflation measure

I wonder why the government persists in using RPI where the flow of money is towards them (e,g. TV licence and other tax increases etc) and CPI where the flow of money is away from them (e.g. indexation of state pensions, NS & I bonds, etc) - a polite cynic would say that this is unfair bias! 

Whilst many private pension schemes that take account of inflation do still use RPI, as members of the scheme would expect as that was the Index specified in the scheme rules when they joined and contributed, others have moved over to CPI. That followed the government's decision to move from RPI to CPI for the public sector pensions in breach of the conditions of those schemes where RPI was the measure defined in the schemes, leading to a steady erosion of the benefits that members expected to receive on retirement.

 

Luzern
Seasoned Champion
Posts: 4,304
Thanks: 672
Fixes: 5
Registered: ‎31-07-2007

Re: Government to keep RPI inflation measure

Hopefully helpful link about the indices. Smiley

No one has to agree with my opinion, but in the time I have left a miracle would be nice.
8BKA
Pro
Posts: 295
Thanks: 80
Fixes: 4
Registered: ‎01-12-2016

Re: Government to keep RPI inflation measure

Jeremy and John McDonnell will sort it when they get into power hopefully

This shower are doing nothing

 

Brian A

Minivanman
Seasoned Hero
Posts: 9,387
Thanks: 2,861
Fixes: 1
Registered: ‎04-11-2014

Re: Government to keep RPI inflation measure

They might be a shower and I'll not disagree, but who is 'urinating' on them from the other side.

Labour in power under the current leadership? It's at times like this I really wish there was a God, although to date he/she has done piddle all so far about anything.

Oh hang on, the guy did flood the world and drown all of mankind... apparently.

Hmm, a plan methinks. Roll eyes

Jonpe
Aspiring Hero
Posts: 2,625
Thanks: 885
Fixes: 8
Registered: ‎05-09-2016

Re: Government to keep RPI inflation measure

All these indexes only apply to you if you buy the items included, and in the proportion in which they affect the index.  For example a couple of years ago RPI went down because digital cameras were getting cheaper.  I'm on my fifth camera and probably won't need another one so I didn't benefit from that RPI decrease, and  people who are struggling to pay their fuel bills are not benefiting from things like cameras going down in price.