Office for National Statistics says it is unable to collect data due to lockdown LONDON: The UK will likely offer some volatile inflation readings in the months ahead because the coronavirus-driven shutdown has prevented statisticians from getting any prices on a wide range of items, including haircuts and holidays The Office for National Statistics (ONS) said it had no data on prices in April that would have accounted for 20 percent of the weighting of its Consumer Price Index. The now unmeasurable items provided a snapshot of what Britons can no longer do under the government’s lockdown — including get manicures, flights, tickets to the theater or concerts, hotel stays or take driving tests. Those prices would be adjusted in line with overall changes in prices that are available, the ONS said. A further range of prices for goods and services that were available but only in very limited supply would be adjusted in line with similar items, sectoral indexes or the overall index. DECODER The Retail Price Index The Retail Price Index underpins payments on the UK’s inflation-linked government bonds. Jonathan Athow, deputy national statistician for economic statistics, said it was too soon to say whether the changes would push inflation up or down. “There might be some unusual movements, either positive or negative,” he said. “We are going to be in a situation which is likely to be more volatile than normal.” The ONS added coronavirus-related changes to the way it calculates the Retail Price Index (RPI), which underpins payments on the country’s inflation-linked government bonds, would not require government approval. The ONS said it had shared its plans with the Bank of England which had determined that the temporary changes did not fundamentally alter the basic RPI calculation and materially hurt index-linked gilt investors. “As a result, the chancellor’s consent is not required to implement these temporary changes,” the ONS said.