U.K. Starts Plan to Fix Its Most Controversial Inflation Gauge

• The U.K. is about to ask how quickly it should fix one of its most controversial pieces of economic data, a measure of prices riddled with problems.
• Chancellor of the Exchequer Sajid Javid will start a consultation in March on fixing the retail-prices index. That follows a decision last year to correct the flawed gauge by 2030, or possibly as early as 2025 based on the result of feedback.
• The move will be another step in a long-running saga about a flawed statistic that’s used for the 453 billion-pound ($590 billion) inflation-linked gilt market, as well as setting increases for student loans and rail fares. With RPI 80 basis points higher, on average, than consumer-prices index, that means higher costs for rail commuters, while the state has to pay more to holders of linkers. 

(Source: Bloomberg