Comments on: Inflation - two indices, two stories http://www.johnredwoodsdiary.com/2007/09/18/inflation-two-indices-two-stories/ Conservative Party Member of Parliament for Wokingham Sat, 11 Oct 2008 19:10:37 +0000 http://wordpress.org/?v=2.6.2 By: Jonathan http://www.johnredwoodsdiary.com/2007/09/18/inflation-two-indices-two-stories/#comment-6300 Jonathan Wed, 19 Sep 2007 12:29:45 +0000 http://www.johnredwoodsdiary.com/2007/09/18/inflation-two-indices-two-stories/#comment-6300 <iAlthough I agree that the move to CPI represented a higher inflation target (I think a target of 1.5% on the CPI would have been more appropriate) I think you're getting confused between RPI and RPIX. It was the latter which the BoE targetted at 2.5%, and is currently at 2.7%, hence the gap is less than twice 0.5% (i.e., 2.7-1.8=0.9). Points 2 and 3 illustrate why the Bank never targeted RPI, because it includes mortgage payments. Reply: I have amended the text as I agree it should mention the two versions of RPI.

Points 2 and 3 illustrate why the Bank never targeted RPI, because it includes mortgage payments.

Reply: I have amended the text as I agree it should mention the two versions of RPI.

]]> By: Brian Tomkinson http://www.johnredwoodsdiary.com/2007/09/18/inflation-two-indices-two-stories/#comment-6250 Brian Tomkinson Tue, 18 Sep 2007 14:19:03 +0000 http://www.johnredwoodsdiary.com/2007/09/18/inflation-two-indices-two-stories/#comment-6250 Surely you must have realised at the time that Brown's switching of the measurement of inflation was no more than cynical political opportunism. The deceit and mendacity of this government has been scandalous and abhorrent. Surely you must have realised at the time that Brown’s switching of the measurement of inflation was no more than cynical political opportunism. The deceit and mendacity of this government has been scandalous and abhorrent.

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