asked the Taoiseach the method by which the rate of inflation is calculated; and if he has satisfied himself that the resultant figures are accurate.
Ceisteanna-Questions. Oral Answers. - Inflation Rate Calculation.
3.
The rate of inflation is measured by the Consumer Price Index which is compiled in respect of mid-February, mid-May, mid-August and mid-November each year by the Central Statistics Office.
The index measures the quarterly change in the cost to the average Irish household of purchasing a fixed representative basket of consumer goods and services. A total of 722 different items are distinguished covering all categories of household expenditure—food, drink, tobacco, clothing, footwear, fuel and light, housing, durable and other goods, transport, services and related expenditure. The index is updated on a regular seven year cycle to ensure that it continues to be representative of household expenditure.
The question basically asks if the Minister is satisfied that the system is satisfactory, that it gives an accurate indication of the rate of inflation.
Yes. I might add that internationally it is recommended that consumer price index weights should be updated at least once every ten years, but in Ireland a steadily updated cycle is followed and we are quite satisfied that the results accruing from that are quite accurate.
When was the last seven yearly revision of the weighting completed?
In 1982, and I have indicated that the next one will be published later this year.
That will be brought into effect in the index as of what date?
The one that will be published later this year will have taken place in August 1988.
When will the new weighting resulting from the survey done in 1988 be incorporated in the new index?
It is planned to introduce that updated index to base mid-November 1989 as 100.
Is it the CSO who draw up this index?
Yes.
Is the Minister quite happy with the operations of that section of the CSO?
There are over 722 different items included in the survey and they cover, as I mentioned, food, drink, tobacco, clothing, footwear, fuel and light etc.
Might it not be a better idea if some independent agency such as the Central Bank were to draw up the criteria for such a study rather than the CSO?
That seems to be a separate question.
All surveys conducted by the CSO are independent. They are undertaken in a very independent way. Therefore, I cannot see that there would be any great difference if another body were doing it
We move now to Questions nominated for priority.