Inflation rate computation updated

Inflation rate computation updated

JAKARTA (JP): The Central Bureau of Statistics (BPS) is
updating the formula for computing the inflation rate, the
agency's chairman Sugito Suwito said yesterday.

Sugito said that a survey on consumption patterns is now
underway, necessary to recalibrate the existing inflation
formula.

"We hope the new formula can be adopted next year," he told
newsmen after a hearing with Commission X of the House of
Representatives (DPR).

He admitted that the current inflation formula did not really
reflect real conditions, due to major changes in the people's
consumption patterns over the last 10 years.

Sugito denied last week that his agency had manipulated the
computation of the country's inflation rates.

Many analysts have questioned the objectivity of the agency's
inflation figures, which are still based on people's consumption
patterns in 1990.

The current system for calculating the Consumer Price Index
(CPI) is based on the prices of 224 consumer goods and services
in the capitals of the country's 27 provinces, including Dili in
East Timor.

The CPI for each city is the price index of a group of goods
and services consumed by most households in the respective city,
based on a survey on costs of living made in April 1990.

Sugito said yesterday that in the new system, components of
goods and services, which will be used to determine the CPI, will
be extended to between 300 and 400 items in order to ensure a
more representative inflation figure.

At yesterday's hearing with Commission X, which is in charge
of development planning, research and technology, Sugito reported
a shortage of skilled personnel in his agency.

He said that the number of skilled staff in the statistics
agency was continuing due to the retirement of it's senior
officials.

"The number of new officials doesn't match that of retirees,"
he said, adding that the government's zero growth policy for the
agency's staffing would affect not only the quality but also the
quantity of its surveys and other data collection activities.

Sugito said that around 285 senior officials, mostly in
important positions, will retire in the course of the 1995/1996
fiscal year. 245 other senior officials will take their
retirement the following fiscal year, 237 others in 1997/1998 and
around 400 people in 1998/1999. (hen)