Students and rail users 'penalised by flawed inflation measure'

Lords report accuses ministers of 'inflation shopping' with tactical use of RPI and CPI

Students and rail passengers have been unfairly penalised by the government using a "flawed" measure of inflation that needs to be urgently fixed, according to a highly critical report from peers.

Ministers have been able to use a tactic of "inflation shopping" to select the retail prices index measure of inflation when it stands to benefit the exchequer, and the typically lower consumer prices index to keep a lid on outgoings, the House of Lords economic affairs committee said.

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