CPIH

The Retail Prices Index (RPI) will be reformed and aligned with the housing cost-based version of the Consumer Prices Index, known as CPIH, by 2030, the Treasury has confirmed.

Potential changes to the way the Retail Prices Index (RPI) is calculated and reported could cause assets to fall by between £60bn and £130bn, according to various estimates.

The Treasury has announced a four-month extension to its consultation on reforming the Retail Prices Index (RPI) in response to the Covid-19 crisis.

Most pension professionals (58%) believe Retail Prices Index (RPI) reform should go further than simply switching to the housing-cost based Consumer Prices Index (CPIH), according to the Society of Pension Professionals (SPP).

With wider funding challenges and the need to play for the long-term, any change to inflation indexation must be swift and firm, says Sir Steve Webb.

The transition from RPI to CPIH could have a significant impact on pension funds. However, as Con Keating says, the real challenges of this shift may come from an unexpected area.

The Treasury will soon consult on moving the calculations behind RPI to match another index. James Phillips looks at the proposal and its potential impact on pension schemes.

Philip Hammond's 2018 Budget speech was entirely devoid of any mention of pensions, but the documents do include some things for the industry to take note of. Professional Pensions rounds up the eight key Budget plans and shortcomings.

The government will gradually adopt a version of the Consumer Prices Index (CPI) which incorporates housing costs for pension funds and index-linked gilts, it confirmed today.