Inflation Overstatement Due to Car Tax Data Error
A car tax data error by the British government led to an overstatement of the consumer price inflation rate by 0.1 percentage points for the year to April. The ONS revealed the issue, affecting retail and CPIH indices but decided against amending past figures, opting for future accuracy improvements.
A recent mistake in car tax data provided by the British government resulted in an overstatement of the consumer price inflation rate by 0.1 percentage points for the year leading to April, according to the Office for National Statistics (ONS).
The retail price index, crucial for setting payments on index-linked gilts, alongside the CPIH rate that factors in home ownership costs, were both overstated by 10 basis points. Despite identifying the error, the ONS will not revise past statistics but pledged to enhance its data verification processes.
This revelation compounds existing criticism faced by the British statistical agency over unreliable labor market figures. Currently, an official investigation is underway to evaluate the effectiveness of its economic data transparency, promising to use accurately calibrated data moving forward.
(With inputs from agencies.)
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