It would be useful if ONS could put the two months indices on SUN to 2 decimal places. This would allow the UG to see if the usual 1dp publication is inadvertently exaggerating differences between the indices.
Regarding an unchanged CPIH my understanding of the rental equivalence index is that it can be interpreted as a moving average centred 9 months or so in arrears which may well have dampened any change.
All the best.
As Andrew mentioned, OOH has had an effect on the gap between CPI and CPIH. Between October and November 2017, prices were flat, having risen in the same period a year ago. This meant that OOH made a downward contribution to the change in the CPIH rate between Oct and Nov 2017.
The main factors acting to decrease the RPI relative to the CPI/H were motor fuels (the RPI prices are collected on index day, whereas CPI/H are collected across the month), air fares (due to differences in the weights between RPI and CPI/H) and house depreciation. These effects were partially offset by Mortgage Interest Payments.We'll get back to you on the point about OOH smoothing/lag.I hope this helps,James.
The trouble wirh publishing to two decimal places is that it would be spurious accuracy. Changes of less than 0.1% would be examined and commented on although they would be meaningless. Of course, there is no need to take just the percentage change rounded to one decimal place; the changes may be calculated from the two index levels with rather greater accuracy.
Hi James and thank you for your prompt reply on this matter.
One bit I would like to tidy up please. You say this in your message.
"As Andrew mentioned, OOH has had an effect on the gap between CPI and CPIH. Between October and November 2017, prices were flat, having risen in the same period a year ago"
This could be misconstrued in this sector as to meaning house prices. Am I correct in assuming you mean imputed rents?