By Daniel Hunter

The Consumer Prices Index (CPI) has been the UK's measure of inflation for a number of years, but that could, or perhaps, should change, according to Institute for Fiscal Studies head Paul Johnson.

As part of a review into inflation measures for the UK Statistics Authority (UKSA), Mr Johnson has recommended replacing the CPI with the CPIH to include housing costs.

He also recommended that the government should scrap the Retail Prices Index (RPI) completely. It is currently used as a benchmark to set certain price rises, the most commonly known being rail fares.

The UKSA is now expected to launch a consultation on Paul Johnson's recommendations and respond to it later.

In the most recent figures, CPI and CPIH both came out at 1%. CPIH is typically lower than CPI, but has never been more than 0.5% lower.

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