INE REVISES METHOD USED TO CALCULATE INFLATION
The National Statistics Institute (INE) will present a new list of products and services the prices of which will be used to determine the Consumer Price Index. The measure responds to long-standing demands from various sectors of society, particularly labor unions, who hope that in this way Cape Verde will have an inflation calculation method more in line with consumers’ day-to-day reality.
The current method used to calculate the Consumer Price Index, which is contested by union representatives and political analysts, dates back to 1989, and no longer reflects Cape Verdeans’ modern consumption habits, which have moved closer to those seen in more developed countries.
The new criteria for the calculation of the Consumer Price Index will, according to the INE, be much more reliable and more representative of Cape Verdean reality. “With this new tool for the evaluation of the price of goods and services, there will also be improved geographic coverage, as the islands of Santiago, São Vicente and Santo Antão will be used for calculations, when previously data was gathered only on the country’s two most populous islands,” says an INE source, quoted by news agency Inforpress.
The new Consumer Price Index will maintain the three consumer reference points (Praia, Mindelo and rural zones), although the calculation will be made based on a greater number of observations. INE sources also said that the new system incorporates methodological innovations introduced by the International Labor Organization, and uses United Nations Consumer Price Index nomenclatures.
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