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<p>The Retail Prices Index (RPI) is a measure of inflation with a number of shortcomings.
To address these shortcomings, the UK Statistics Authority (UKSA) has made a proposal
to reform RPI by bringing the methods and data sources of the Consumer Prices Index
including owner occupiers’ housing costs (CPIH) into RPI. Owing to the use of RPI
in specific index-linked gilts, prior to 2030 the Chancellor’s consent to this proposal
is required before it can be implemented.</p><p> </p><p>At the Budget in March, the
government and UKSA launched a consultation to consider whether UKSA’s proposal should
be implemented at a date other than 2030, and, if so, when between 2025 and 2030.
The consultation closed for responses on 21 August. As part of the consultation, the
government sought views on the broader impacts of the proposed reform of RPI.</p><p>
</p><p>The consultation document can be found at the following link: <a href="https://www.gov.uk/government/consultations/a-consultation-on-the-reform-to-retail-prices-index-rpi-methodology"
target="_blank">https://www.gov.uk/government/consultations/a-consultation-on-the-reform-to-retail-prices-index-rpi-methodology</a>.</p><p>
</p><p>As announced on 9 November, the government and UKSA will respond to the consultation
alongside the Spending Review on 25 November.</p><p> </p><p>The 9 November announcement
can be found at the following link: <a href="https://www.gov.uk/government/publications/a-letter-from-rishi-sunak-to-sir-david-norgrove-on-the-date-of-the-government-and-uk-statistics-authoritys-response-to-their-joint-consultation-on-re"
target="_blank">https://www.gov.uk/government/publications/a-letter-from-rishi-sunak-to-sir-david-norgrove-on-the-date-of-the-government-and-uk-statistics-authoritys-response-to-their-joint-consultation-on-re</a>.</p>
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