Bernard Durkan (Kildare North, Fine Gael)
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Question 81: To ask the Tánaiste and Minister for Finance the extent to which he can identify, isolate and address the inflation creating factors not reflected in the consumer price index with particular reference to the need to address the issue of the competitiveness of goods and services and the need to compete at home and abroad; and if he will make a statement on the matter. [29636/07]

Brian Cowen (Laois-Offaly, Fianna Fail)
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The Director General of the Central Statistics Office (CSO) has sole responsibility for, and is independent in, deciding the statistical methodology and professional standards to be used in compiling the Consumer Price Index (CPI).

The CPI is designed to measure the change in the average level of the prices paid by consumers for goods and services. It measures in index form the monthly changes in the cost of purchasing a representative basket of consumer goods and services.

The CSO publishes a detailed breakdown of the component parts of the CPI at the same time each month that it releases the overall CPI figures. This separate publication is called the "Consumer Price Index Detailed Sub-Indices Release" and it serves to demonstrate the comprehensive nature of the CPI.

Maintaining a moderate rate of inflation remains a key priority of economic policy because of its importance in relation to competitiveness. The Government is focusing on areas it can control and is taking positive actions to contain inflation by implementing responsible fiscal policies. For example, we have not increased excise duties for the last three years, apart from tobacco excise, which was done for sound health policy reasons. We are promoting greater price competition through various measures. We are also investing in public infrastructure, as evidenced by the National Development Plan 2007-2013, which will enhance our ability to produce goods and services more efficiently and thereby keep inflation down.