HL Deb 28 July 2000 vol 616 cc111-2WA
Lord Jacobs

asked Her Majesty's Government:

Further to the Written Answer by the Lord McIntosh of Haringey on 28 June (WA 88), what approximately would have been the retail price index excluding mortgage interest payments (RPIX) in May 2000 if the depreciation component of the retail price index for owner-occupied houses had not been introduced in 1995, but had been introduced in (a) 1985 and (b) 1950. [HL3294]

Lord McIntosh of Haringey

The information requested falls within the responsibility of the National Statistician, who has been asked to reply.

Letter to Lord Jacobs from the National Statistician and Registrar General for England and Wales, Office for National Statistics, Mr Len Cook, dated 28 July 2000

Further to the Written Answer by Lord McIntosh of Haringey on 28 June (WA 88), as National Statistician I have been asked to respond to your recent Question asking what approximately would have been the retail price index excluding mortgage interest payments (RPIX) in May 2000 if the depreciation component of the retail price index had not been introduced in 1995, but had been introduced in 1985 and 1950 (HL3294).

The table attached shows index levels for RPIX and the DETR house price index (the change in the depreciation component of the RPI is measured using the DETR house price index) back to 1975 which was the first year RPIX was published. The table shows the house price index to have more variability over short periods than the RPIX. This means it is difficult to draw long term inferences about the effect of housing depreciation on RPIX based on the effect of its inclusion in the index since 1995. A historical RPIX series cannot be recalculated with the addition of depreciation as the index would have to be re-weighted for all years and this could only be undertaken at disproportionate cost.

Table showing RPIX and the DETR housing index (1990 = 100)
Year RPIX Housing
1975 28.6 16.4
1976 33.3 17.9
1977 38.6 19.2
1978 42.0 22.3
1979 47.2 28.8
1980 55.2 34.9
1981 61.9 36.8
1982 67.2 37.7
1983 70.7 42.2
1984 73.8 46.1
1985 77.7 50.3
1986 80.5 57.2
1987 83.5 66.7
1988 87.3 83.8
1989 92.5 101.3
1990 100.0 100.0
1991 106.7 98.6
1992 111.7 94.9
1993 115.1 92.5
1994 117.8 94.8
1995 121.1 95.5
1996 124.7 98.9
1997 128.2 108.1
1998 131.5 120.0
1999 134.6 133.8