Train fares are linked to the retail prices index but a new CPIH measure for inflation would be lower, putting more money in the pockets of commuters Ben Gurr for The TimesBritain’s national statistician has urged the authorities to switch to a measure of inflation that includes housing costs and council tax to provide a more comprehensive picture of the way that prices are changing. John Pullinger, head of the Office for National Statistics, has decided to make CPIH “the preferred measure” from March in a move that may affect pensions, benefits and rail fares. CPIH is an augmented measure of the consumer prices index that the Bank of England is mandated to follow for its 2 per cent inflation target. Pensions, benefits and income-tax thresholds are linked to CPI, and increases in train fares, water bills and £500 billion of inflation-linked government debt are indexed to the retail prices index. Although the ONS does not…

Source: The Times November 11, 2016 00:04 UTC