asked the Minister for Finance if he will state the rate of economic inflation for the period 1st January, 1972, to 31st March, 1972; and what actions, if any, the Government took to curb this inflation and the effect they have had.
Ceisteanna—Questions. Oral Answers. - Economic Inflation Rate.
36.
In referring to the rate of economic inflation the Deputy presumably has in mind movements in the consumer price index which are generally taken as reflecting inflationary trends. The consumer price index is not published for the dates mentioned by the Deputy but between mid-November, 1971, and mid-February, 1972, the index increased by 2.3 per cent. A rise in food prices, helped by an increase in the value of agricultural exports, accounted for more than half of this price rise.
The Government's policy on prices and incomes was outlined in my recent budget speech and the activities of the National Prices Commission over the period January-March, 1972, are set out in the published monthly reports of the commission.
An assessment of the effectiveness of the Government's policy on prices and incomes is contained in the "Review of 1971 and Outlook for 1972". This concluded that there is evidence of an easing of inflationary pressures.
Would the Minister agree that the consumer price index is the most sensitive indicator?
Probably.
Has it ever been put to the test? Is there any other more sensitive indicator?
No, but there are other areas in which inflation can take place and it would not necessarily be reflected in the consumer price index. However, the consumer price index is generally taken as reflecting inflationary trends.