Written answers

Thursday, 28 January 2010

Department of Finance

Consumer Price Index

5:00 pm

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Labour)
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Question 46: To ask the Minister for Finance further to Parliamentary Question No 80 of 19 November 2009, if he will publish the full analysis of his Department and provide a copy to this Deputy. [4288/10]

Photo of Brian Lenihan JnrBrian Lenihan Jnr (Dublin West, Fianna Fail)
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As is the norm in the course of the Budgetary preparations my Department carried out various technical analyses, including an assessment of the impact of falling consumer prices on households by social type and income decile. The Department's technical analysis suggested that prices were falling – on average – for all households both by income decile and head of household type. While there are statistical caveats associated with this type of technical analysis the methodology is in line with work already carried out by the Economic and Social Research Institute (ESRI).

In relation to the impact of falling consumer prices the methodology involved consumption weights for different types of household from the most recent Household Budget Survey which was carried out in 2004-05. Rates of change for various categories of consumer prices were then applied to these weights to get consumer price changes for the different household types.

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