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