Fix CPI So That It’s Fair to Everyone
The government's approach to defecit-reduction needs to be clearer and fairer.
It has changed a range of "uprating" indexes from RPI to CPI as a cost-reduction measure but needs to ensure that CPI is fit for purpose. Claiming that CPI is a better indicator of costs and reflects a consistent approach with the Bank of England measure of inflation is misleading given the current content and use of the CPI.
In terms of content, some elements of housing costs need to be introduced to CPI. Council Tax and Building Insurance costs being the prime example.
Why does this idea matter?
Currently a range of indices are used to set income and price increases. These need to be made fit for purpose in order to protect the civil liberties of UK residents and prevent the state from abusing its control of inflation-related price and income increases.