Tectonic shift: could RPI transition be the new Libor?

With CPIH set to replace RPI in 2030, some say the move could cost pension funds around £90bn

As rates markets focus on the seismic upheaval that is the end of Libor, a less obvious dislocation has been gathering steam beneath the inflation sector. The 2030 transition of the standard measure of inflation from the retail price index (RPI) to CPIH – the consumer price index including owner occupiers’ housing costs – looks set to cause dramatic disruptions for holders of inflation-linked bonds.

“The market overall isn’t paying much attention to a transition happening eight-and-a-half years

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