Advantages and Disadvantages of CPI and CPIH
14. CPI was the ONS headline measure of inflation until 2017 when it was replaced by CPIH. CPI is calculated in line with international standards set by the United Nation's International Labour Organization. CPIH is broadly consistent with CPI, but is a UK measure designed to better capture the costs of owning housing, including Council Tax. However, it is important to note that housing costs included in CPIH do not include mortgage costs, as these are costs associated with purchasing a house. Instead, they cover costs of maintaining and living in a property.
15. CPI is used by the Bank of England for inflation targeting and has a reliable track record as a National Statistic. The statistic used in relation to uprating of state pension and other benefits is generally CPI. It will also be the basis for uprating pitch fees in England and in Wales, giving consistency for businesses that operate in more than one part of the UK.
16. Official forecasts of CPIH are not available and it is therefore not commonly used for uprating. Forecasts are required to assess the cost of uprating over a longer time period than the immediate future, and would make it easier for residents and site owners to plan ahead.
17. Based on this consideration the Scottish Government considers CPI to be the most appropriate current measure for uprating pitch fees.
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