Household inflation index must not be dismissed, says RSS

Written by Web News Editor on . Posted in News

Recommendations from the Johnson Review of consumer price indices fall short of what is needed, according to the Royal Statistical Society, which believes that a ‘household inflation index’, reflecting the actual cost of household spending, should be considered.

The request has been made in a letter from RSS President Peter Diggle to the National Statistician John Pullinger.

The Johnson Review, which was published in January, recommended that the CPIH (the Consumer Prices Index which also takes into account of housing costs) be made the main measure of the UK’s inflation. The RSS disagrees with this course of action.

'We believe the review should have started from first principles by examining the different needs that consumer price indices aim to meet, then deciding what sort of index is required for each need and the extent to which they can, or cannot, be combined,' Professor Diggle wrote in the letter.

'We therefore urge that the approach of a full "household inflation index" based on actual expenditures incurred be examined in detail and a practical route for its development set out. I hope you will ask ONS staff to work on this so that it can be one of the options in the consultation.'

A UK Statistics Authority consultation on consumer price indices is expected in summer.

John Pullinger UK Statistics Authority Office for National Statistics (ONS) Peter Diggle Inflation

Join the RSS

Join the RSS

Become part of an organisation which works to advance statistics and support statisticians

Copyright 2019 Royal Statistical Society. All Rights Reserved.
12 Errol Street, London, EC1Y 8LX. UK registered charity in England and Wales. No.306096

Twitter Facebook YouTube RSS feed RSS feed RSS newsletter

We use cookies to understand how you use our site and to improve your experience. By continuing to use our site, you accept our use of cookies and Terms of Use.