Sixty Second Summary
RPI reform – save the date
11 Nov 2020
The results of the consultation on the reform of the Retail Price Index (RPI) are to be announced on 25 November 2020, according to a letter from the Chancellor. This will conclude many months of speculation on the future of RPI. Specifically, if RPI will be aligned with CPIH, when and whether there will be compensation.
Coinciding with the UK Budget on 11 March 2020, the much-anticipated Consultation on reforming the Retail Price Index (RPI) was released. The consultation was originally due to close in late April, but the deadline was extended to late August because of the coronavirus pandemic.
The outcome of the Consultation may conclude many months of speculation on the future of RPI, initially triggered by the House of Lords Economic Affairs Committee’s January 2019 report, Measuring Inflation, which recommended that statistical deficiencies with the RPI be addressed.
This will be released alongside the one-year spending review, which the government announced last month.
Read our full Sixty Second Summary for more details on:
- The proposed reform
- Market pricing
- What might be the eventual fate of RPI?
- Implications for pension schemes
- Assumptions
- What next?
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