The government says that May’s inflation report was delayed due to an error in the calculation of CPI (Consumer Price Index) and RPI (Retail Price Index) inflation.

A formula error happened in July 2020, which impacted inflation figures over the span of eleven months.

The government noted that this error occurred only once to an item in the Recreation and Culture sub category within CPI and Leisure Goods within RPI.

The May 2021 report now includes the corrected rates of inflation and index values from July 2020 through to May 2021.

The impact upon the rates of inflation between what was originally published in each of the months, and the correct rate, is pictured in the table.

RPI is not used to calculate pensions or benefits, and so the errors in RPI would not have had any impact on these.

CPI is used to calculate increases for certain benefit payments in the island, while others are linked to the UK’s CPI rate.

However, the government clarified that ’No one received any excess or bonus increase to their benefits than they should have had the correction not been made’.

The reference date for increasing benefits is usually September’s inflation data, and last September both the erroneously published figure and the recently corrected one were negative.

As per the 2021-22 budget, most benefits payments increased by 0.5%.