New mode of price indexes

Press, 27 May 1981, Page 31

New mode of price indexes

PA Wellington The Department of Stalls tics has launched a new series of price indexes called the Capital Expenditure Price Index (C.E.P.1.). The Minister of Statistics (Mr Templeton) said that it covered more than 70 types of capital assets, including plant, machinery, and buildings. and allowed historic value to be adjusted to current value. That was necessary for the latest accounting techniques, current cost accounting, he said. • "Current cost accounting lists assets at today's price, and I can sec more'companies turning to it as a more accurate assessment’ of value. The capital expenditure price indexes are a great help with this.” Mr Templeton said that C.E.P.I. would also help with economic policy formation and monitoring. The C.E.P.I. also filled a gap in economic statistics. The classifications were compatible with those used in industrial censuses and in national accounting. “The C.E.P.I. thus provides a means of deflating capital expenditure, aggregates where these are expressed in money terms. In times of high inflation, they provide a worth-while addition to the information needs of economists in the academic and policy areas," Mr Templeton said.