Inflation data hides true increase in living costs

Official inflation figures due out today are misleading the public, according to international experts who say the data understates the true increase in the cost of living.

National Office for Statistics figures out later this morning are expected to show an increase in the consumer prices index (CPI) to 4%, up from 3.7% in December. But authors of a report in the respected journal of the International Association for Official Statistics, including a former World Bank economist, say the figures are misleading. The report concludes: "The official price indices currently available for the UK are misleading the general public and are of doubtful relevance for policy purposes," according to the Guardian. CPI measured-inflation, which Britain switched to i...