Bertie Ahern
Question:3 Mr. B. Ahern asked the Taoiseach the plans, if any, there are to produce monthly inflation statistics as in other countries. [4893/97]
Ceisteanna—Questions. Oral Answers. - Inflation Statistics.
The consumer price index is designed to measure the change in the average level of prices paid, inclusive of all indirect taxes, for consumer goods and services by all private households. It was compiled on a quarterly basis in respect of the middle Tuesday of the months of February, May, August and November each year up to the end of 1996. From January 1997 onwards, it is being compiled on a monthly basis. The collection of prices for compiling the January 1997 CPI was undertaken on 14 January 1997 and was released yesterday, 25 February at 12 p.m.
I welcome that, in line with other countries, the CPI is to be published on a monthly basis. To what extent were the inflation statistics published yesterday affected by the post Christmas sales?
The figures published yesterday showed a decrease of 0.5 per cent for the two month period since the middle of November 1996. This is to be welcomed by everybody. However, special factors apply in this instance, including the pitching of prices below normal during the Christmas sales. We are happy the publication of inflation figures on a monthly basis will help to continue to focus our attention on keeping it low, not only in terms of sustaining our good economic performance but also in ensuring that we meet the European Monetary Union criteria.
Will the Minister indicate what the CSO considers to be the impact of the post Christmas sales on the statistics for the month of January?
I do not have that figure. There is a reduction of 0.5 per cent. I hope the pattern will be maintained, but one must acknowledge that the figure could be a temporary blip and that special factors apply in view of the unusually low price of consumer goods during the month of January because of sales and sales promotions.
Would the Minister of State not agree that the reduction of 0.5 per cent is largely fictional given that property values are not taken into account? He will be aware that people have been queuing overnight in my constituency to buy property which is now escalating in value at the rate of almost 20 per cent per annum. To report 0.5 per cent inflation is a fiction when overall property values are rising at a rate of 15 to 16 per cent per annum.
This represents an injection of new matter to this question.
It is not a fiction. The HCIP excludes the price of owner occupier housing, health services and educational services. However, there is an 89 per cent conformity when the HCIP is compared with the consumer price index in this country. The variation is only 11 per cent. The reduction in the rate by 0.5 per cent is welcome. When incorporated into the 12 month figure it will help to keep it down. All indicators, guidelines and requirements necessary to qualify for inclusion in European Monetary Union are being met. We are confident there is no threat from the inflation rate.
Is the Minister of State suggesting the rate of inflation is really 11 per cent? Young people buying houses face increases of 14 to 16 per cent in the price of a basic commodity they need for living. The production by the Government of figures of this scale does not represent reality.
The Deputy is raising a specific matter worthy of a separate question.