ONS blames government figures after revealing April inflation error
There was renewed scrutiny over the credibility of figures produced by the Office for National Statistics (ONS) after the government body admitted an error in its inflation calculations for April.
According to the ONS, the issue arose after the government overstated the number of vehicles subject to the vehicle excise duty.
The UK stats body revealed that the error with data provided by the Department for Transport meant the figure for consumer price inflation was 0.1 percentage point higher in a publication released last month.
It added that it would not amend the inflation rate of 3.5 per cent down to 3.4 per cent due to its own policies and procedures on consumer prices.
Retail price index (RPI) inflation was also overstated by 0.1 percentage point for April.
A statement by the ONS said: “This error is isolated to one component dataset that is used to calculate the VED index. However, the ONS is reviewing its quality assurance processes for external data sources in light of this issue.”
“The ONS apologises for any inconvenience caused,” it added.
The official statistician for UK data often makes revisions to other key publications, including employment and public finances, but follows different rules for inflation.
Inflation error follows difficult few years
The error comes as the ONS has faced intense pressure over its handling of important data, including that pertaining to labour market data.
It said it may not be able to launch its overhaul of the labour force survey until late 2026. Delays to reforms and faulty data on jobs have prompted criticism from the Bank of England while the Cabinet Office is reviewing the statistics body’s effectiveness.
The UK Statistics Authority (UKSA), which is reviewing work at the ONS alongside government officials, is drawing up an analysis of whether Britons will be forced to respond to the labour force survey, according to Bloomberg News.
A spokesperson told the news agency that compulsory participation would require legislation but it was looking at how it could take place legally and practically.
The ONS’ leadership team is also changing after its head, Professor Sir Ian Diamond, resigned due to health reasons.
Staff at the ONS have also grown frustrated over working from home policies, The Sunday Times reported last month, while leading UK economists have claimed the decision to relocate its headquarters to Newport in 2006 has damaged efficiency.
The statistics body has also suffered from spending cuts, with millions of pounds cut from its budget over multiple years, including £34m last year.