How different measures of inflation affect doctors’ pay claimpublished at 15:35 British Summer Time
15:35 BST
Robert Cuffe
BBC Verify head of statistics
Image source, Getty Images
We’ve been looking into a row over how much resident doctors’ (who used to be called junior doctors) pay has fallen in real terms – and it centres on what measure of inflation is used.
Inflation is the increase in the price of something over time. The Retail Prices Index and Consumer Prices Index are two commonly used measures.
Each index typically produces very different results (RPI is usually higher) because they include different things.
The doctors’ union the BMA argues that resident doctors’ pay has fallen 20% since 2008, once adjusted for RPI inflation.
However this falls to 5% if CPI inflation is used (the government’s preferred measure), according to analysis from the Nuffield Trust, external – a health think tank.
Speaking to BBC Radio 4’s Today programme, the BMA’s Emma Runswick defended using RPI to support its pay claim.She said RPI was “the measure of inflation the government uses for our debt… for train fares… for car taxes”.
She’s correct to say the government still uses RPI for things like annual train fare increases – although it is due to be phased out by 2030.
Other things, however, like increases to state pensions and benefits are usually based on CPI and the body which makes recommendations to the government on doctors’ pay says it uses CPI as its “benchmark”, external when looking at how pay has changed over time.