asked the Taoiseach the method of selecting shops for the provision of data for compilation of the cost of living index; whether there has been any change in the selection or range of shops in the last ten years; the number of shops from which data are collected; the frequency of shop selection and data collection; whether supermarkets and cutprice stores are included; and if he will make a statement on the matter.
Ceisteanna — Questions. Oral Answers. - Compilation of Cost of Living Index.
17.
The consumer price index is compiled quarterly for mid-February, mid-May, mid-August and mid-November. Price quotations are furnished to the Central Statistics Office at these dates by local officers of the Department of Labour in respect of the 118 towns in which employment exchanges and branch employment exchanges are located — several returns are received for the larger centres of population, so that the total number of returns is 163. The price quotations, numbering over 28,000, relate to a list of 189 commodities selected on the occasion of the introduction of the present consumer price index series in August, 1953. In November, 1967, approximately 2,400 different shops furnished the basic data.
The selection of the shops from which the price quotations are obtained is made by the price reporters referred to, subject to general instructions to select shops most frequented by the wage-earning classes. The essential principle followed in the collection of price quotations is to ensure that the prices quoted for a particular commodity in any particular period should be for the same quality and description as at the preceding inquiry and, as far as possible, should be obtained from the same source. This means that the set of shops from which quotations are obtained remains relatively stable — any substantial change at a point of time could result in a discontinuity in the series. Over the years, however, there is a gradual change because of closures, changes in types of commodities handled, difficulties in retaining the co-operation of the proprietor, etc. Because of this, and because of changes in the form of retailing followed by shops already furnishing quotations, the newer types of retail outlet which have emerged in recent years are represented in the list of shops involved, but not to any predetermined degree.
It is important to keep in mind that the basic objective of the consumer price index is to assess the change in the level of prices over a period of time. It does not essay to determine the actual absolute level of prices at a particular point of time — for which a very elaborate sample of retail outlets and individual transactions would be required.
The number and type of retail shop from which quotations are obtained is only one facet of the consumer price index compilation — the list of commodities covered and the relative weights given to these commodities are of great importance. These will shortly be revised by the Central Statistics Office when the results of the 1965-66 Household Budget Inquiry becomes available. At that stage all technical aspects of the preparation of the index, including the sources of the basic price quotations, will be reviewed.
Arising from the Parliamentary Secretary's protracted reply, does not all that mean that as the value of money goes down and the cost of goods goes up, the poor grow poorer while the rich grow richer?
Question No. 18.