UK Inflation Error Sparks Market Disquiet
The UK's Office for National Statistics has admitted a 0.1-point inflation overstatement due to car tax data errors, affecting consumer price indices and government bonds. Despite market turbulence, data won't be amended. The issue has prompted a review of third-party data processes.
Britain's Office for National Statistics revealed an inflation error on Thursday, saying April's consumer price inflation was overstated by 0.1 percentage points due to incorrect car tax data provided by the government.
This mistake also impacted the retail prices index, crucial for calculating interest on index-linked government bonds, and CPIH, which includes housing costs.
Despite market disquiet, the ONS will not amend the April data in line with its policy, but plans to use accurate figures for May. An internal review is underway to address these issues.
(With inputs from agencies.)
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