Bernard Allen
Question:150 Mr. Allen asked the Taoiseach the reason efforts made to remove tobacco from the consumer price index have been overruled. [2412/01]
Written Answers. - Consumer Price Index.
The CPI is designed to measure inflation. To do this accurately it must reflect the change in the average prices paid to purchase consumer goods and services in market transactions. Tobacco represents 4.8% of the expenditure measured by the CPI and clearly needs to be included if an accurate measure of inflation is to be achieved. This is consistent with standard international practice.
The Irish CPI is compiled by the Central Statistics Office, CSO. Under the Statistics Act, 1993, the director general of the CSO has sole responsibility for and is independent in deciding the statistical methodology and professional standards to be used. To facilitate users, the CSO publishes a sub-index excluding tobacco. This allows users to choose or reach a consensus on the most appropriate index to use for specific purposes.