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.
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.
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.
A Tory sleight of hand to rinse students, who’s have guessed it?