Monday, November 13, 2017

ONS releases - Impact of inclusion of additional price quotes on Consumer Price Indices

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13 November 2017

Economy

Impact of inclusion of additional price quotes on Consumer Price Indices

This article sets out the impact of implementing an improvement in the Consumer Prices Index including owner occupiers' housing costs (CPIH; the lead measure of inflation in the UK), the Consumer Prices Index (CPI) and their supplementary indices.

This change is planned for February's indices in 2018 and is designed to improve the representativeness of price movements of volatile items (specifically fruit and vegetables) in the CPIH and CPI baskets by including additional price quotes collected over more than one working week. As the CPI is identical to the Harmonised Index of Consumer Prices (HICP), this improvement will also help us to better meet EU regulations. This change will not be applied to the Retail Prices Index (RPI).


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