New inflation index including owner occupiers' housing costs to be launched

The Office for National Statistics has today announced that a new additional measure of consumer price inflation will be launched which includes owner occupiers’ housing (OOH) costs.

The new index, which will initially be known as CPIH, will measure OOH costs using the rental equivalence method. This method uses changes in rental prices to measure the costs of owning, living in and maintaining a property. CPIH will be introduced in March 2013 at the same time as the annual CPI/RPI basket of goods and services review.

ONS will publish its full response to the public consultation on OOH (together with the Consumer Prices Advisory Committee's annual report for 2012) on 13 November 2012.

Background notes

1. For more information on developments to the CPI and RPI see: http://www.ons.gov.uk/ons/about-ons/user-engagement/consultations-and-surveys/archived-consultations/2012/index.html
2. ONS started a consultation on the recommendation to use the rental equivalence approach to owner occupiers' housing costs on 11 June 2012 and it closed on 31 August 2012. Subsequent to the consultation, the National Statistician recommended that a new additional measure of consumer price inflation, CPIH, be based on rental equivalence. The UK Statistics Authority agreed, at its meeting on 27 September 2012. ONS will publish its response to the consultation, and the responses it received, together with the CPAC annual report for 2012 on 13 November 2012.
3. Details of the policy governing the release of new data are available from the media office.
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4. Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: media.relations@ons.gsi.gov.uk