Government to change inflation calculations

Wed, 24 Jan 2018

The Government will change the way it calculates inflation from April.

Currently, three methods are used to work out inflation on the Island - the Consumer Prices Index and two different methods for calculating the Retail Prices Index.

The Government believes the Carli formula for calculating RPI overstates the effects of price changes, so from the start of the 2018-19 financial year only the Jevons formula will be used alongside CPI.

Policy and Reform Minister Chris Thomas insists no two people experience the same inflation as they consume different goods and services, but it's hoped separate inflation rates for different sectors of the population will be introduced in the future.