§ Lord Oakeshott of Seagrove Bayasked Her Majesty's Government:
Why the scope and definition of the retail prices index are matters for the Chancellor of the Exchequer; and who is responsible for the scope and definition of the national index of retail prices in each member state of the European Union. [HL5361]
§ Lord McIntosh of HaringeyThe Retail Prices Index (and its derivatives) is an indicator of the utmost economic importance which is used for many different purposes including: inflation targeting; the uprating of pensions and social security benefits; wage bargaining; price-setting formulae applied by regulated industries; and the indexing of tax thresholds and allowances, Excise duty rates and index-linked gilts. In view of its unique importance, it is only right that, in line with long-standing arrangements, ultimate responsibility for the scope and definition of the RPI lies with the Chancellor. This means that on matters of scope and definition there is direct accountability to Parliament.
This position is mirrored in the governance of the leading national consumer price indices of a number of other European countries including Austria, Belgium and Sweden.