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Some people have defended the government's doctoring by arguing that it helps the country save on inflation-linked bond payments.
Independent experts agree the widely discredited government statistics agency has been fudging consumer-price data for years for political gain and, to a lesser extent, to lower inflation-linked debt payments.
Zedillo Outlines Shape of a Recovery Plan : Mexico: President pledges maximum import tariffs, inflation-linked loan payments.
The government is saving money on inflation-linked debt interest payments and on benefits, which are often linked to prices.
Lower inflation also saves the government money on inflation-linked debt interest payments and reduces the rate at which benefits go up.
Britain's stubbornly high rate of inflation — one of the steepest in Europe — also poses problems for the deficit, as inflation-linked benefits and bond payments will require increased government outlays.
All payments are inflation-linked to the Retail Price Index over the course of the deal, but in today's money, West Ham are paying a total of about £247.5m between 2016 and the year 2115.
(Some of this will be down to higher interest payments, particularly on inflation-linked gilts).
But their spending wouild be less affected and the initial shock to the economy would be much smaller.The idea of a shared mortgage is that the homeowner's debt will be linked to house prices in their immediate area; if prices fall, then both the interest payment and the principal amount would decline (this structure has similarities with that of inflation-linked bonds).
Since many pension benefits are linked to inflation, this has sparked a particular enthusiasm for inflation-linked debt.
Loans are interest-free, though inflation-linked.
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Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com