UK car tax error overstated inflation by 10 basis points, ONS says
LONDON, June 5 (Reuters) - An error in car tax data provided by the British government caused the consumer price inflation rate to be overstated by 0.1 percentage points for the year to April, the Office for National Statistics (ONS) said on Thursday.
According to data published last month, consumer price inflation rose by 3.5% in the 12 months to April, up from 2.6% in the 12 months to March.
The ONS said the incorrect data overstated the number of vehicles subject to Vehicle Excise Duty rates in the first year of registration.
The agency was already facing criticism over its unreliable labour market figures, and the government in April launched an investigation into the effectiveness of the official economic data it publishes.
The ONS said the CPI statistics would not be amended, but it was reviewing its quality assurance processes for external data in light of the issue.
It said it would be using the correctly weighted data from May figures onwards, meaning no further statistics would be affected.
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