True measure of inflation is ignored
How did it happen? The upstart measure of inflation CPI has so overtaken RPI that is now ignored – particularly now that the Retail Prices Index is now running at 2% twice as much as the Consumer Prices Index. In other words we believe inflation is half as high as it really is. Since 2010 the Government has used the lower CPI for benefits, tax credits and public sector pensions. But student loans, rail travel and mobile phone contracts are increased in line with the RPI. Savings rates are worse than they seem As savings rates are shy of both […]