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Time to reset the watch and scrap RPI as a measure of inflation

This flawed statistic benefits a lucky few while the rest of us pay the price

By Paul Johnson  

Photo: Ben Birchall/PA Wire/PA Images

Segal’s law tells us that a man with one watch knows what time it is. A man with two watches is never sure.

When it comes to knowing what’s happening to inflation we are like a man with three watches. The UK Statistics Authority publishes three headline inflation measures every month. One is the Consumer Price Index, the CPI, which is the measure targeted by the Bank of England and the measure generally reported by the media. A version of it, CPIH, takes account…

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