Inflation rate is accurate, chief statistician insists<\/p>\n
JAKARTA (JP): The government's chief statistician said
\nyesterday that the national inflation rate, which is released
\neach month by the Central Statistics Bureau (BPS), is as accurate
\nas possible.<\/p>\n
Chief of the BPS Sugito Suwito said the consumer price index
\nis based on the price movements of a wide range of goods and
\nservices, with basic necessities such as food and housing
\ncarrying greater weight.<\/p>\n
\"Most laymen have an incorrect perception about BPS's work
\nbecause of their ignorance about how the data is collected,\" he
\nsaid in his first press conference since he was appointed to the
\npost on Aug. 5.<\/p>\n
Many people have suggested that there is the inclusion of
\nluxury goods in order to produce the final inflation rate.<\/p>\n
\"That's wrong,\" he said, adding that the rate should be based
\nmore on basic necessities consumed by a large number of people
\nsuch as rice, water and electricity.<\/p>\n
He insisted that the bureau is operating independently of
\nother government institutions, including when it compiles the
\nconsumer price index, which he admitted is the bureau's most
\nwidely criticized body of statistics.<\/p>\n
The accuracy of the monthly and annual inflation figures have
\noften been questioned, with some suggesting that they might have
\nbeen fixed to meet government objectives.<\/p>\n
The government, for example, has vowed to maintain the annual
\ninflation rate into a single digit. True enough, the rate has
\nbeen kept to just under 10 percent in recent years.<\/p>\n
Many people, particularly housewives and workers vying for
\ncost of living wage increases, said the consumer price index does
\nnot reflect the reality they find in the marketplace.<\/p>\n
Now, with the Sixth Five-Year Development underway since
\nApril, the government has vowed to keep the inflation rate to an
\naverage of five percent for the next five years.<\/p>\n
The consumer price index has already increased by 5.96 percent
\nsince January.<\/p>\n
Sugito warned that unless the nation was careful, the
\ninflation rate this year could shoot into a double digits. He
\nsaid the recent hikes in the price of rice could be a telling
\nfactor.<\/p>\n
He said the prices of rice, electricity, gasoline and public
\ntransport fares are among the commodities and services that carry
\nthe largest weight in calculating the inflation rate.<\/p>\n
Sugito said that companies which organized important
\ncommodities such as the electricity company PLN, water company
\nPAM and logistic agency Bulog should think twice before deciding
\nto increase the prices.<\/p>\n
He said the promise made by the state oil firm Pertamina not
\nto increase gasoline prices deserved praise because it would help
\nto suppress inflation.<\/p>\n
Sugito also presented the latest edition of the bureau's
\nIndonesia's Population Census 1990, yesterday. The 145-page book
\nconsists of graphics illustrating the 1990 census, with
\ncomparisons to the ones that proceeded it.<\/p>\n
The 1990 population census was the fourth carried out in
\nIndonesia. The previous census were held in 1961, 1971 and 1980.
\n(par)<\/p>",
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