UK pension funds lose case to block RPI inflation change

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FILE PHOTO: General view of the High Court in London

LONDON (Reuters) - A British court on Thursday rejected an application from major pension funds to overturn authorities' plans to reform the Retail Prices Index (RPI) measure of inflation.

"The application for judicial review is dismissed," London's High Court of Justice said in its judgment.

The pension funds, including those of BT, Marks and Spencer and Ford, had brought the case for judicial review against the UK Statistics Authority regulator and Britain's finance minister.

RPI, which dates back to the 1940s and is regarded by official statisticians as inaccurate and obsolete, remains the benchmark for inflation-linked British government bonds that are commonly held by pension funds.

(Reporting by Andy Bruce; editing by David Milliken)