Inflation Error: UK's Car Tax Mistake Inflates CPI Figures
An error in British car tax data led to an overstated inflation rate, increasing it by 0.1 percentage points. The Office for National Statistics (ONS) identified the problem and plans to adjust future data. Despite criticism, the CPI figures won't be amended for past errors.
An error in car tax data provided by the British government has led to a minor overstatement of the country's consumer price inflation rate, according to a recent announcement by the Office for National Statistics (ONS).
The miscalculation, related to vehicles subject to Vehicle Excise Duty, resulted in a 0.1 percentage point inflation rate overstatement for the year up to April. The ONS noted that the consumer price inflation rate was reported at 3.5% in April, a rise from March's 2.6%.
Although the Consumer Price Index won't be revised, the ONS stated it would rectify future data calculations and reassess the quality assurance processes for external information. The British government has initiated an investigation into the accuracy of official economic data amid growing criticism.
(With inputs from agencies.)
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