Pensioner inflation should be the next job for the ONS

Michelle McGagh
Old hands with money
Old hands with money

Pensioners were able to breathe a sigh of relief a few weeks ago as the government held back from changing the measure of inflation that would have seen millions of pounds wiped off pension savings.

Everyone thought it was a done deal so it was a nice surprise when the Office of National Statistics (ONS) announced it would not move the retail price index (RPI) in line with the consumer price index (CPI). Although both measure a basket of goods to determine inflation, or the cost of living, the RPI rises more quickly as it includes housing costs.