Retail Prices Index

Lord Naseby Excerpts

Wednesday 24th April 2013 Lords Chamber

Asked By

[Lord Naseby]

To ask Her Majesty’s Government why the UK Statistics Authority overruled the recommendation and decision of the Office for National Statistics, following public consultation, to keep the Retail Prices Index as an official national statistic and whether they intend to challenge its downgrading.

[Lord Wallace of Saltaire]

My Lords, the board of the UK Statistics Authority accepted the recommendations of the National Statistician both to produce a new index, to be known as RPIJ, and to retain the RPI as it is currently constructed. RPIJ is constructed in a way that meets current international standards whereas RPI was judged not to meet those standards. Because of this, the designation of the RPI as a national statistic was removed by the UK Statistics Authority, following a statutory reassessment which confirmed the finding of the National Statistician’s consultation that its formulation failed to meet current international standards.

[Lord Naseby]

Is my noble friend aware that this is a UK statistic and that international standards on statistics are, frankly, a little irrelevant? After all, is it not the case that the Office for National Statistics changed its mind from the original proposition, based on strong representations from finance, commerce, industry and savers? In the light of that, will my noble friend make further suggestions to the UK Statistics Authority that it thinks again and puts that badge of quality back on the RPI?

[Lord Wallace of Saltaire]

My Lords, I was not aware that either mathematics or statistics differed according to national boundaries. The only statistics course I took was in the United States. I should have thought that international standards—those of Eurostat, the International Labour Organisation and the IMF—are standards that the UK should follow without wishing to bring the defence of national sovereignty or hatred of the European Community into account.