Measurement of Mortgage Interest Payments within the Retail Prices Index (2009)
Opening date: 30 October 2009
Closing date: 22 January 2010
Department: Office for National Statistics
Category: General
The UK Statistics Authority endorsed a proposed change from the Consumer Prices Advisory Committee (CPAC) in October 2009. This change relates to the measurement of Mortgage Interest Payments (MIPs) within the Retail Prices Index (RPI). CPAC recommended:
a. The Office for National Statistics changes the interest rate measure used in the calculation of mortgage interest payments in the RPI from the Standard Variable Rate (SVR) to an Average Effective Rate (AER) and that the choice of rate should be kept under review in future and changed, if necessary, at the annual RPI reweighting
b. The AER should be introduced into the published RPI in March 2010, at the same time as the annual update of the basket of goods and services that underpin the RPI (and CPI)
The Authority plans to reach a final decision in January 2010 following public consultation as well as discussions with the Bank of England, and if required with the Chancellor, under the provisions of the relevant part of the Statistics and Registration Service Act 2007. The public consultation of this proposed change is currently underway, closing on 22 January 2010. The ONS currently plans to introduce this change at the time of the next RPI re-weighting which will occur in March 2010.
Comments should be sent to:
Philip Gooding
Room 1227
Office for National Statistics
Government Buildings
Cardiff Road
Newport
NP10 8XG
+44 (0)1633 455 896
Alternatively, responses can sent by email to: cpi@ons.gov.uk
