What is the UK RPI rate for 2021?
The Retail Price Index (RPI) of the United Kingdom in July 2021 was 231.3 for goods, and 421.4 for services, indicating an increase in the price of goods and services compared with the RPI’s baseline year of 1987.
Do pensions use CPI or RPI?
Whilst the Government has already switched to the Consumer Price Index (CPI) for price inflation for increases to public sector and state pensions and government benefits, it has continued to use RPI for increases to train fares and government index linked gilts.
What is the current RPI rate for 2021?
The CPI inflation rate was 3.1% in September 2021, down from 3.2% in September. The RPI inflation rate was 4.9% in September 2021, up from 4.8% in August.
What is the UK RPI rate for 2020?
Forecasted inflation rate of the Retail Price Index in the United Kingdom from 2021 to 2025
| Characteristic | Outturn | Forecast |
|---|---|---|
| 2021 | – | 2.5% |
| 2020 | 1.5% | – |
| 2019 | 2.6% | – |
| 2018 | 3.3% | – |
What is the RPI September 2021?
The UK’s inflation rate in September 2021, as measured by the CPI, was 3.1%. The inflation measures for the year to September 2021 are as follows: RPI inflation was 4.9% in September 2021 (Index: 308.6), up from 4.8% in the year to August 2021.
Why did we change from RPI to CPI?
RPI has its origins in the “cost of living index”, which was first published in 1914, with the modern RPI being published in 1956. From April 2011, the then Government decided to switch to CPI rather than RPI to calculate increases in social security payments and public sector pension benefits.
What is RPI reform?
RPI reform. RPI reform. The UK government is planning to align RPI with CPIH which we believe will result in an unintended transfer of wealth from index-linked gilt holders to the UK government of c. £100bn, reducing pension transfer values and lifetime incomes by 10-15% or more.
What is the predicted UK CPI for September 2021?
The Consumer Prices Index (CPI) rose by 3.1% in the 12 months to September 2021, down from 3.2% to August.
Can a pension scheme switch from RPI to CPI?
The High Court held that the scheme rules did not give the trustees the power to switch from RPI to CPI for revaluation or indexation, so long as RPI remained an officially published index.
Are there any implications for UK pension schemes?
There will be implications for UK pension schemes on both their assets and their liabilities. However, there will be a lot of variation from scheme to scheme, as it depends on the extent to which RPI is currently used for pension increases and whether the scheme holds RPI-linked assets.
When does inflation change from RPI to CPIH?
25 November 2020 It has been announced today that the RPI measure of inflation will be amended from 2030 to be aligned to CPIH. This technical change will have wide-reaching implications for UK defined benefit pension schemes in the private sector.
What does index mean in occupational pension scheme?
Many occupational pension schemes refer generically to an ‘Index’ in calculating pension revaluation and increases, which gives flexibility to change between inflationary measures. Other schemes, such as the Qinetiq Pension Scheme (the Scheme), hard-code a specific definition of ‘Index’.