18/05/2009 - Sales figures inaccuracy addressed
Retailers have not enjoyed quite the level of sales originally indicated by official figures, it has emerged.
Mounting concerns over the quality of the data used in compiling the retail sales index (RPI) have led to the Office for National Statistics (ONS) adopting a new method of crunching the numbers.
Retail sales volumes as measured by the ONS have been consistently higher than other indicators in the past year, in spite of the deepening recession.
The changes, which follow consultation with bodies such as the Treasury and the Bank of England, mean that annual growth in retail sales volumes is as much as one-and-a-half percentage points lower than first thought.
"This change will make sure that the RSI more accurately captures recent trends in retail sales, including where consumers switch purchases to goods that have fallen in price," the ONS said.
The starting point of the index had previously been rebased every five years, but the official body said that in a "rapidly changing economy" this time period was not frequent enough to maintain accuracy.
It will now update the starting point of the index every year under a process known as 'chain-linking'.
Copyright © Press Association 2009
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