Bank Of England Governor Calls For Old Measure Of Inflation To Be Replaced

A basket of goods is seen in a supermarket on February 19, 2018 in Bristol, England. The Governor of the Bank of England Mark Carney has called for the UK Government to drop the Retail Price Index as a measure of inflation which is used to set rail fares, student loan repayments and government contracts worth billions of pounds, because it has known errors. According to the Office of National Statistics the RPI has a number of calculation errors and has consistently overestimated inflation meaning many costs set by the RPI have risen too high, whilst beneficiaries of government bonds have had larger than expected returns, funded by the taxpayer. Because RPI is typically higher than the BankÕs preferred measure of inflation, the Consumer Prices Index, many experts believe it paints an unrealistic picture of the cost of living and both the government and businesses have developed a habit of choosing which ever inflation measures that best suit their interests. (Footage by Matt Cardy/Getty Images)