Dropping RPI inflation could have a negative effect for pensioners and investors
Thursday 12 Sep 2019 Author: Laura Suter
The Chancellor has refused to review a decision on whether to scrap the controversial Retail Prices Index (RPI) measure of inflation in the short-term, despite reputable statisticians saying it is a flawed measure of price increases. However, an indication that it will be reviewed from 2025 has sent shockwaves through the RPI inflation-linked UK Government debt market, causing the price of some longer-duration bonds to fall by 10%. Investors...