RPICPI User Group

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To foster co-operation and the exchange of information between the ONS, its advisory bodies and other users. Please see 'Aims of the RPI/CPI User Group' in the library for further details.

Governor Carney's Evidence on Consumer Price Indices before the House of Lords Economic Affairs Committee

  • 1.  Governor Carney's Evidence on Consumer Price Indices before the House of Lords Economic Affairs Committee

    Posted 30-06-2018 04:07

    Dear all:

    Jonathan Gardner kindly drew my attention to a passage in Governor Carney's testimony before the House of Lords Economic Affairs Committee that raised the question: "Would Canadian experience be helpful to the UK in moving from the RPI to some other series for the indexation of gilts?". Unfortunately, the short answer would appear to be no. If you are unwilling to simply take my word for this, I have added a new section (section 5) to my paper in the library, "Governor Carney's Evidence on Consumer Price Indices before a Parliamentary Committee", which explains. I also changed the title to "Governor Carney's Evidence on Consumer Price Indices before the House of Lords Economic Affairs Committee". I apologize if this inconveniences anyone. I never liked the original title.

    The US Treasury Inflation-Protected Securities are now indexed based on CPI-U. American authorities may now be struggling with the same kind of problem as UK authorities as they know CPI-U overstates inflation, and the chained CPI (C-CPI-U) corrects for this bias. It would be interesting to know if the Americans are considering a move to their chained CPI, and if so, how they intend to proceed.

    Best regards,

    Andrew