Written question asked by Lord German (Liberal Democrat), in the House of Lords. It was answered by Lord Sassoon (Conservative) on Wednesday, 11 May 2011.

Consumer Prices Index

Question: To ask Her Majesty’s Government whether they have any plans to refine the methodology for the Consumer Prices Index to ensure that it is a suitable measure of inflation for the uprating of thresholds, benefits and pension rights.

Answer: Both HM Treasury and the Bank of England are members of the Consumer Prices Advisory Committee (CPAC) that advises the United Kingdom Statistical Authority on improvements to the Consumer Price Index (CPI), recommended by the Office for National Statistics (ONS). The Chancellor has supported refining the methodology for the CPI so that it includes housing costs. The Office for National Statistics, along with the national statistical offices of other European member states, is working with the Statistical Office of the European Communities (Eurostat) to assess the most appropriate approach for including an index of owner-occupier housing costs in the CPI in the future. The work plans agreed at each CPAC meeting and the annual report are published by the ONS on its website.

Secondary information

Type: Written question
Reference: 8812; 727 c213WA
Session: 2010-12
Related items: Consumer Prices Index
Wednesday, 18 May 2011
Written questions
House of Lords
Subjects: Consumer prices index
Link: View this Written question on www.publications.parliament.uk