Inflation rate use 'under discussion'

Cannan answers PAC questions

Government's use of different types of inflation rates is under discussion, according to the Treasury minister.

Alfred Cannan was answering questions before the Public Accounts Committee yesterday when he made the comments.

The matter has been raised recently, following the ongoing use of the much higher retail prices index to raise the water rate for the coming financial year.

It's around four times higher than the consumer prices index, which is used to set wage and pension rises.

Mr Cannan told the committee he was cautious about the prospect of any changes: