Statistics agency plans to update inflation basis<\/p>\n
JAKARTA (JP): The Central Bureau of Statistics plans next year
\nto modify the base for calculating the consumer price index (CPI)
\nin a bid to ensure a more representative inflation figure, says
\nthe agency's chairman Soegito.<\/p>\n
Soegito said the change in the system in calculating the CPI,
\nthe base used in measuring the inflation rate, would be made to
\ncomply with the change in people's consumption patterns.<\/p>\n
\"The increase in the per capita income and the rise in the
\npopulation have resulted in a significant expansion in the
\npeople's consumption patterns,\" he said.<\/p>\n
The CPI for Indonesia, which is actually the weighted average
\nof CPIs at provincial capitals, uses the total number of
\nhouseholds in each city as the weights.<\/p>\n
The existing system in calculating the CPI is based on prices
\nof 224 items of consumer goods and services in 27 provincial
\ncities including Dili, the capital of East Timor.<\/p>\n
Economists, however, said that the existing system no longer
\nensures a more objective inflation figure, given the rapid change
\nin the per capita income and consumption patterns taking place in
\nthe last five years.<\/p>\n
Rijanto, a noted monetary expert, charged recently that the
\ninflation figure provided by the government does not really imply
\nthe actual fluctuation rates as most of the components used in
\ncalculating the CPI no longer indicate the real price movements.<\/p>\n
Soegito said that in the planned system, components of goods
\nand services, which will be used in determining the CPI, would be
\nexpanded to between 300 and 400 in order to ensure a more
\nrepresentative inflation figure.<\/p>\n
Indonesia has been able to maintain its inflation rate below
\n10 percent in the last three years as the impact of its tight
\nmonetary system.<\/p>\n
But economists said that the inflation rates do not reflect
\nthe real price movements because the existing base in calculating
\nthe price index mostly covers less important items of consumer
\ngoods.<\/p>\n
They said if the base in calculating the CPI fully reflected
\nthe real price fluctuation, the inflation figure should have been
\nhigher than 10 percent. (hen)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/statistics-agency-plans-to-update-inflation-basis-1447893297",
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