Economics
Hammond Will Leave BOE's Inflation Target Index Unchanged
- Statistics office uses CPIH as its favored inflation measure
- Chancellor due to present Budget to Parliament on Nov. 22
Philip Hammond, U.K. chancellor of the exchequer, leaves after a cabinet meeting at number 10 Downing Street in London, on Oct. 24.
Photographer: Chris J. Ratcliffe/BloombergThis article is for subscribers only.
U.K. Chancellor of the Exchequer Philip Hammond doesn’t plan to change the inflation gauge that the Bank of England targets in the Budget next week, according to two officials familiar with the matter.
While there has been speculation of a switch from CPI after the Office for National Statistics changed its preferred price measure to CPIH this year, no related alteration by the Treasury is imminent, said the people, speaking on condition of anonymity because the plans haven’t been published. The index is relatively new and needs time to build credibility, one of the people said.