[LONDON] Britain should switch to using a measure of consumer prices which better reflects housing costs as its main gauge of inflation, according to a review published on Thursday.
The CPIH index, which was launched in 2013, includes more housing costs than the Consumer Price Index which is currently the basis of the Bank of England's inflation target but does not include items such as mortgage payments.
The CPIH and the CPI have been the same at the same rate since August.
The review, carried out for the UK Statistics Authority, recommended that Britain's statistics office "should move towards making CPIH its main measure of inflation." The review also recommended ending the use of Britain's Retail Price Index as a basis for contracts, including inflation-linked bonds issued by the government.