Al R said:
Technically speaking, ONS no longer applies RPI to anything anyway, but stand by for CPIH.
It took three years, but it's finally here.
CPIH does not include property prices, whereas the current CPI does include cost of living in your house. CPIH or CPI of course, determines your annual pension increase. It's impossible to predict the future, but CPIH won't capture increases in house prices. That aside, and taking into account the post Brexit dip, in September, CPI was running at 1%, CPIH at 1.2%. Ordinarily, we should assume CPI would be higher.
Who will be affected? Anybody with wage bargaining involving a measure of inflation, pensioners with a pension which depends on inflation (us), investors in UK index-linked Gilt (me, I quite like them!), and savers with National Savings and other index-linked bonds.
Edit repaired link:
UK to adopt CPIH as preferred inflation measure in March 2017 | Reuters