New Inflation Rates
The Office for National Statistics has published inflation figures for the twelve months to February 2017.
The Retail Prices Index (RPI) stood at 3.2% for the year to February 2017, up 0.6% from the year to January 2017.
Some private and public sector employers are attempting to sideline RPI as the measure for pay negotiations and are pushing other measures – such as CPI (2.3% for the year to February 2017, up 0.5% from the year to January 2017) or CPIH (2.3% for the year to February 2017, up 0.4% from the year to January 2017). These alternative inflation measures are not appropriate for pay negotiations as they are an inaccurate measure of workers’ average costs over the year.
Any attempts by an employer to link pay awards to CPI or CPIH must be opposed and logged with the National Policy Department.
Further information will follow in the Pay Bulletin and I would be grateful if you could bring this Circular to the attention of all Branch members.