Britain's headline measure of inflation may be modified
to include housing costs, after a top Bank of England official revealed it had
held further talks with the Treasury about switching to a more “useful” gauge
of price rises. Andy Haldane, the Bank’s
incoming chief economist, told MPs that Bank staff had held technical
discussions with the Treasury to assess whether it would be appropriate to
switch the Bank's 2pc target from the consumer prices index (CPI) to the new
CPIH measure, which was introduced in March 2013. CPIH includes housing costs
such as mortgage interest payments, which represent about 10pc of consumer
spending. Mr Haldane described CPIH as
“a conceptually and practically more useful measure of a typical consumption
basket”. Read more on the Daily
Telegraph website.
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