New Inflation Rates - February 2017

Head Office Circular No. NP/025/17/DC

To all Branches and Regional Councils

Tuesday 14 February 2017

Dear Colleagues,

New Inflation Rates

The Office for National Statistics has published inflation figures for the twelve months to January 2017.

The Retail Prices Index (RPI) stood at 2.6% for the year to January 2017, up 0.1% from the year to December 2016.

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 (1.8% for the year to January 2017, up 0.2% from the year to December 2016) or CPIH (2% for the year to January 2017, up 0.3% from the year to December 2016). 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.

Yours sincerely


Mick Cash
General Secretary