Trevor Sargent (Dublin North, Green Party)
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Question 173: To ask the Minister for Finance his views on the findings of the recent OECD report which estimated that Irish inflation would have been almost 1% higher if all house price costs were included in official data, thereby suggesting that inflation figures underestimate the real cost of living by ignoring a large part of soaring house prices; and if he will make a statement on the matter. [32947/05]

Brian Cowen (Laois-Offaly, Fianna Fail)
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Methodological issues are the responsibility of the director general of the Central Statistics Office, CSO, who is independent in deciding the statistical methodology and professional standards to be used in compiling price indices.

The OECD analysis focuses primarily on the harmonised index of consumer prices. It should be noted, however, that the coverage of housing costs in the consumer price index, CPI, is wider than in the HICP. In particular, mortgage interest payments are included in the CPI. Therefore, there are no grounds to suggest that the CPI figures underestimate the real cost of living over time. Discussions regarding the inclusion of housing costs in the HICP are currently ongoing between EUROSTAT and the national statistical institutes of the EU.