The head of the UK Statistics Authority, Sir David Norgrove, says the Tories have used a “poor inflation measure” that miscalculates student loan repayments and rail fare increases.
The man who oversees UK statistics says the measure of inflation used to set rail fare increases and student loan repayments is bollocks and shouldn't be used because it's probably wrong. pic.twitter.com/gEQ6qHuiDW
— Jim Waterson (@jimwaterson) March 8, 2018
Sir Norgorve’s said the Tories should have used CPI (Consumer Price Index) instead of RPI (Retail Price Index) to work out by how these costs increase each year.
— UK Stats Authority (@UKStatsAuth) March 8, 2018
Norgrove’s comments have serious consequences. It has been widely noted that RPI overstates inflation; CPI on the other hand understates inflation, which is why Osborne relied on CPI in 2010, to make sure people’s pensions and benefits only rose in value very slowly.
The @ONS says that RPI is bollocks. Sir David Norgrove, the chairman of the UK Statistics Authority, says RPI is bollocks. @TheIFS, @PJTheEconomist & @ChrisGiles_ say it's bollocks. So why keep it? https://t.co/c2MyDYf3ZM
— Robert Colvile (@rcolvile) March 8, 2018
A Tory sleight of hand to rinse students, who’s have guessed it?