Index-linked gilts could fall up to 30% if RPI is scrapped

The UK Government has undertaken a consultation into the calculation and use of the Retail Price Index (RPI) with particular reference to index linked gilts, the effect on public finances and the integrity of the statistical system. This will potentially have a major effect on the market, but there are so many uncertainties about the outcome, that for the moment the market remains calm. Treasury and Economic Affairs Committees call for flawed inflation measure fix What is the problem with the RPI and what does this mean for index linked gilts? Firstly, the UK National Statistician ...