http://dofonline.co.uk/blogs/the-edge/interest-rates/fiddling-with-the-inflation-figures-1155574/ Richard Northedge takes on corporate finance Tue, 22 May 2012 06:39:22 +0000 http://wordpress.org/?v=2.5.1 http://dofonline.co.uk/blogs/the-edge/interest-rates/fiddling-with-the-inflation-figures-1155574/#comment-15432 David Tremain Wed, 17 Mar 2010 19:08:22 +0000 http://dofonline.co.uk/blogs/the-edge/?p=483#comment-15432 The 2010 retail prices index CAN be compared with previous years. Price indices always use a link-month, where both the old and new basket of goods are collected. The index figure given by the new basket is then chain-linked onto the the old basket, to give a continuous measure which can easily be compare year on year. It's all basic index number theory, which perhaps the author should have checked before posting. Also, the RPI has NOT been retrospectively revised, it is a complete fallacy to say that is has. The new methods will only affect the calculations going forwards. Again, probably something the author should have checked. The 2010 retail prices index CAN be compared with previous years. Price
indices always use a link-month, where both the old and new basket of goods
are collected. The index figure given by the new basket is then
chain-linked onto the the old basket, to give a continuous measure which
can easily be compare year on year. It’s all basic index number theory, which perhaps the author should have checked before posting. Also, the RPI has NOT been retrospectively revised, it is a complete
fallacy to say that is has. The new methods will only affect the calculations going forwards. Again, probably something the author should have checked.

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