Joan Burton (Dublin West, Labour)
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Question 206: To ask the Minister for Finance his views on the best measure of price inflation facing social welfare recipients, whether it be the consumer price index, the harmonised index of consumer price or other, in view of the relatively lower propensity to have a large mortgage of social welfare recipients; and if he will make a statement on the matter. [34641/09]

Brian Lenihan Jnr (Dublin West, Fianna Fail)
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The Central Statistics Office (CSO) publishes monthly both the Consumer Price Index (CPI) and the Harmonised Index of Consumer Prices (HICP). The latter is compiled on a common basis across the European Union. The main difference between the CPI and the HICP is that the latter excludes mortgage interest costs. The CPI fell by 5.9 per cent in the twelve months to August while the HICP fell by 2.4 per cent over the same period. Most of the difference can be explained by changes in mortgage interest rates.

The CPI basket is based on average consumption patterns so price changes for particular individuals and households will invariably differ from the national average. The CSO does not publish indices by income decile or social group. Nevertheless, I would like to point out to the Deputy that prices of a wide range of goods and services have fallen on a year-on-year basis, not just mortgage interest. This is supporting disposable incomes right across society and not just for mortgage holders.