Bank of England MPC member Stephen Nickell has just accomplished the rather unenviable task of explaining what the switch from an inflation target based on the RPIX index to the HICP index, as used in Europe, actually means. Inflation indexes: who cares? What's the problem? The problem with the switch to HICP, as Nickell put it, is to explain "what the hell's going on."
The Bank has not been too happy with this change being foisted on them and even less so with its timing. Having laboured