Transcript Consumer Price Index- What does it measures

‫ﻢﻳﺣﺭﻠﺍ ﻥﻣﺣﺭﻠﺍ ﷲﺍ ﻢﺴﺑ‬
USERS PRODUCERS
WORKSHOP
PRESENTATION ON PRICE
STATISTICS
BY
ABDUL AZEEM SAHITO
DIRECTOR
PRICE STATISTICS SECTION
FBS, KARACHI
PRICE STATISTICS
• PRICE STATISTICS INCLUDES
COLLECTION OF RETAIL AND WHOLE
SALE PRICES AND COMPUTATION OF
FOLLOWING INDICES:• 1. CONSUMER PRICE INDEX (C.P.I)
• 2. WHOLESALE PRICE INDEX (W.P.I)
• 3. SENSITIVE PRICE INDICATOR (S.P.I)
Consumer Price Index
• “ Consumer Price Index is the main
measure of price changes at the retail level.
It measures changes in the cost of buying a
representative fixed basket of goods and
services and is generally accepted as a
measure of inflation in the country”.
SENSITIVE PRICE
INDICATOR (SPI)
• Sensitive Price Indicator (SPI) is
designed to assess price movement of
essential consumer items at short
intervals (on weekly basis ).
WHOLE SALE PRICE INDEX (WPI)
Wholesale price index ( WPI) is designed to
measure the change of price in the primary
and wholesale markets.
Why Three Types of Indices?
• CPI measures Inflation rate in the country
• SPI is computed to assess the price
movement of essential commodities at short
interval of time to review the price situation
in the country.
• WPI measures the General Price level in
the whole sale market.
WHAT CPI MEASURES?
• It measures Price changes of fixed market
basket of goods and services of constant
quality and quantity.
• It tells how much cost of living has risen or
fallen due to price changes irrespective of
changes in consumer behaviour or quality
of goods.
• It does not reflect the cost of living or in
house hold consumption expenditure as
such but only the influence of price
fluctuation on the trend.
Selection of Markets/Outlets
and Cities
• Items are selected on the basis of Family Budget
Survey
• Markets are selected through retail and wholesale
trade survey.
• Outlets are selected on transaction value basis.
• Cities are selected on population basis
• Stratified sampling are used for selection of
cities.
Weights for CPI
The results of Family Budget Survey provide the average
percentage expenditure(Consumption pattern) of Households on
each item/each commodity group and for each income group for
the cities covered in CPI. These average percentage expenditures
on item and commodity groups are called weights and are being
used in computation of the CPI.
Po x qo
Wi = ------------- x 100
 Po x qo
Example: 1. Total Expenditure: Rs. 3000,
2. Expenditure on Wheat Flour:- Rs. 100
3. % of Expenditure on Wheat flour = (100/3000)*100 = 3.33
Weight of Wheat flour = 3.33%
Commodity Groups Wise Items and Weights
C.P.I (2000-01)
• Commodity Group
Weights Items
01. Food, Beverages & Tobacco
02. Apparel, Textile & Footwear
03. House Rent
04. Fuel & Lightening
05. House Hold, Furniture & Equipment etc.
06. Transport & Communication
07. Recreation & Entertainment
08. Education
09. Cleaning, Laundry & Personal Appearance
10. Medicines/Medicare
TOTAL
40.34
6.10
23.43
7.29
3.29
7.32
0.83
3.45
5.88
2.07
100.00
124
42
01
15
44
42
16
24
26
29
374
COVERAGE OF CITIES AND MARKETS IN BASE
YEAR FOR CPI 2000-2001
Name of City
No of
Markets
Name of City
No of
Markets
Punjab
1. Islamabad (Federal
Capital Area) *
04
10. Jhang
01
2. Rawalpindi *
06
11. Okara
01
3. Lahore *
07
12. D. G. Khan
01
4. Gujranwala *
01
13. Bahawalpur *
01
5. Faisalabad *
02
14. Bahawalnagar
01
6. Multan *
03
15. Mianwali
01
7. Jhelum
01
16. Vehari
01
8. Sialkot *
01
17. Attock
01
9. Sargodha *
01
18. Samundari
01
* Cities also included in SPI cities
COVERAGE OF CITIES AND MARKETS IN BASE
YEAR FOR CPI 2000-2001
Name of City
No of
Markets
Sindh
Name of City
No of
Markets
N.W.F.P.
19. Karachi *
13
27. Peshawar *
03
20. Hyderabad *
04
28. Mardan
01
21. Sukkur *
02
29. Abbottabad
01
22. Nawabshah
01
30. D. I. Khan
01
23. Larkana *
01
31. Bannu *
01
24. Mirpurkhas
01
Balochistan
25. Shahdadpur
01
32. Quetta *
02
26. Kunri
01
33. Khuzdar *
01
34. Turbat
01
35. Loralai
01
Total Cities = 35
* Cities also included in SPI cities
Total Markets = 71
INCOME GROUPS OF CPI
1. Up to Rs. 3000.00
2. Rs. 3001.00 - 5000.00
3. Rs. 5001.00 – 12000.00
4. Above Rs. 12000.00
Time table for Collection of Prices
Part-I
Food, Beverages Tobacco
Monthly
11-14 of each
month
Part-II
Apparel, Textile and Foot Wear
Fuel and Lighting
Monthly
01-03 of each
month
Part-III
House Hold, Furniture & Equipment
Transport & Communication
Monthly
04-06 of each
month
Part-IV
Recreation, Entertainment & Education,
Cleaning, Laundry & Personal Appearance
& Medicines
Monthly
07-10 of each
month
Part- VII
WHOLE SALE PRICE
Monthly
13-15 of each
month
Part-VI
S.P.I
Weekly
Each Thursday
Daily Prices of 18 items
Daily
Daily
FORMULA USED FOR COMPUTATION OF CPI
Laspeyre's formula as given below is being used for
the computation of CPI.
 (Pn/Po) x wi
In = --------------------x 100
 wi
Where In = CPI for the nth period
Pn = price of an item in the in the nth period
Po = price of an item in the base period
wi = weight of the ith item in the base period =
Po x qo /  Po x Qo
 wi = Total weight of all items.
EXAMPLE FOR COMPUTATION OF CPI
UNIT
BASE
PRICE (Po)
PRICE IN
MAR, 06 (Pn)
WEIGHT
(Wi)
Pn / Po
Po / Pn x
Wi
Moong Pulse
Kg
29.91
47.61
0.2230
1.5918
0.3550
Mash Pulse
Kg
45.01
52.72
0.2017
1.1713
0.2363
Masoor Pulse
Kg
36.23
44.03
0.2214
1.2153
0.2691
Gram Pulse
Kg
28.99
31.50
0.4272
1.0866
0.4642
ITEM
1.0733
( Pn/Po) x Wi
Index = -------------------------------- x 100
 Wi
1.3246
I = -------------------------- x 100 = 123.41
1.0733
1.3246
COVERAGE FOR VARIOUS CPI BASE YEARS
ITEMS
OCCUPATIONAL
CATEGORY
1948-49 = 100 1955-56 = 100 1969-70 = 100 1975-76 = 100 1980-81 = 100 1990-91 = 100 2000-01 = 100
Industrial
All categories
combined
Industrial
Industrial
Industrial
Industrial
Industrial
Clerical
Commercial
Government
Commercial
Government
Commercial
Government
357
464
Commercial
Government
Self Employer &
employed
460
374
4
9
9
10
12
25
25
35
57%
63%
63.13%
65%
28
65
61
71
39984
116928
112240
106500
1. Up to Rs. 600
2. Rs. 601-1500
3. Rs. 1501 - 2500
4. Above Rs. 2500
1. Up to Rs. 1000
2. Rs. 1001-2500
3. Rs. 2501-4500
4. Above Rs. 4500
1. Upto Rs. 1500
2. Rs. 1501 - 4000
3. Rs. 4001 - 7000
4. Rs. 7001 - 10000
5. Above Rs. 10000
1. Upto Rs. 3000
2. Rs. 3001 - 5000
3. Rs. 5001 - 12000
4. Above Rs. 12000
NUMBER OF ITEMS
202
NUMBER OF
COMMODITY
4
4
4
GROUPS
NUMBER OF CITIES
4
4
12
% OF TOTAL
URBAN
57%
POPULATION
NUMBER OF
28
MARKETS
NUMBER OF
22624
QUOTATIONS
INCOME GROUPS 1. Up to Rs 68-130 1. Up to Rs. 105-130 1. Up to Rs. 300
2. Rs. 218-332
2. Rs. 301-500
3. Rs. 501 - 1000
4. Above Rs. 1000
Limitation of CPI
1) Coverage is limited
2) Only covers Urban Centres
3) Prices may have different trend in rural &
urban centres.
4) Rent is computed through construction
input items index instead of rent survey.
5) It measures partially inflation not total
consumer’s expenditure.
WHOLE SALE PRICE INDEX (2000-01)
•
•
•
•
Coverage:
Commodities: 106
Items 425
Price Quotations 1550
CITIES:18 Major Cities
1. Lahore
2. Faisalabad 3. Rawalpindi 4. Multan 5. Gujranwala
6. Sialkot
7. Sarghoda 8. Bahawalpur 9. Sahiwal 10. Karachi
11. Hyderabad 12. Sukkur
13. Nawabshah 14. Larkana
15. Peshawar 16. Quetta.
17. Mirpurkhas 18.Mingora
GROUPS & WEIGHTS:Commodity Group
Weight No. of Items No. of Commodities
No. of Price
Quotation
FOOD
42.12
106
43
693
RAW MATERIALS
7.99
25
09
104
FUEL, LIGHTING
19.29
17
11
36
& LUBRICANTS
MANUFACTURES
25.87
227
32
564
BUILDING
MATERIALS
4.73
50
11
153
TOTAL
100.00
425
106
1550
PERIODICITY OF PRICE COLLECTION: - 11th to 14th of Each Month (Monthly)
WEIGHTS FOR WPI
• The value of marketable surplus is being used for
deriving weights of commodities/items included in
WPI. The value of marketable surplus is the value
of commodity available for sale in wholesale
market. It is equal to the total value of production
less consumption by the producers less exports (if
any) plus imports.
•
Example:- Production – Self Consumption +Imports- Exports
Wheat = (100 )-(20) + (10) – (10) =80
Value of Marketing Surplus= 80 x 1000 = 80000
Total Value of all the Items included in WPI =100,0000
% of Wheat in Total Value = (80000/1000000) x 100 = 8%
Whole Sale Price Index (WPI)Historical Changes
No of
Commodities
No of Price
Quotations
No. Of
Cities
1959-60=100
64
201
22
1969-70=100
72
433
22
1975-76=100
87
625
22
1980-81=100
91
690
22
1990-91=100
96
1210
16
2000-01=100
106
BASE
YEAR
1550
18
Commodity groups
Food
Raw Materials
Fuel,lighting & lubricants
manufactures
Food
Raw Materials
Fuel,lighting & lubricants
manufactures
Food
Raw Materials
Fuel,lighting & lubricants
Manufactures
Building Materials
Food
Raw Materials
Fuel,lighting & lubricants
Manufactures
Building Materials
Food
Raw Materials
Fuel,lighting & lubricants
Manufactures
Building Materials
Food
Raw Materials
Fuel, Lighting& Lubricants
Manufactures
Building Materials
•
SENSITIVE PRICE INDICATOR
(2000-01=100
)
Coverage:
•
•
•
•
Items:
53
Markets:
53
Price quotations:
10812
CITIES:17 MAJOR CITIES
1. Lahore 2. Faisalabad 3. Rawalpindi 4. Islamabad
5. Multan 6. Gujranwala 7.Sialkot 8. Sargodha
9. Bahawalpur 10. Karachi 11. Hyderabad 12. Sukkur
13. Larkana 14. Peshawar 15. Bannu 16.Quetta
17. Khuzdar.
•
INCOME GROUP:- UPTO Rs. 3000.00 (Also for other groups)
CATEGORY OF EMPLOYEES:- ALL CATEGORIES COMBINED
•
• PERIODICITY OF PRICE COLLECTION: On Every Thursday (Weekly Basis)
LIST OF ITEMS OF SPI
S.N
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
22
23
24
25
26
27
ITEM
W heat
W heat Flour
Rice Bas mati (Broken)
Rice Irri-6
Mas oor Puls e
Eggs
Bread plain
Sugar
Gur
Milk Fres h
Milk Powdered (Nido)
Curd
Vegetable Ghee(Tin)
Vegetable Ghee(Loos e)
Mus tard Oil
Cooking Oil(Dalda)
Potatoes
Onions
Tomatoes
Bananas
Salt
Red Chillies
Garlic
Tea Packet
Moong Puls e
Mas h Puls e
Gram Puls e
S.N
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
50
51
52
53
ITEM
Beef with Bone
Mutton
Tae(Prepared)
Cooked Beef(Plate)
Cooked Dal (Plate)
Cigrettes K-2
Latha(coars e)
Lawn
Voil
Shirting
Sandal Gents (Bata)
Sandal Ladies (Bata)
Chappal s pounge(bata)
Keros ine Oil
Fire W ood
Electric Bulb(60 W atts )
Match Box
W as hing Soap
Bath Soap(Life Buoy)
Chicken Farm
Gas Charges
Electric Charges
Telephone Charges (Local)
Patrol
Dies el
L.P.G
Total Items 53
Sensitive Price Indicator (SPI) Historical Changes
BASE YEAR
NO OF
CITIES
NO OF
ITEMS
NO OF
MARKETS
INCOME
GROUP
OCCUPATIONAL
CATEGORIES
1969-70=100
12
28
22
upto Rs.300
Industrial employees
Commercial employees
Government employees
1975-76=100
12
38
22
Upto Rs.600
Industrial employees
Commercial employees
Government employees
1980-81=100
12
46
50
Upto Rs.1000
Industrial employees
Commercial employees
Government employees
1990-91=100
12
47
48
Upto Rs.1500
Industrial employees
Commercial employees
Government employees
2000-01=100
17
53
53
Upto Rs.3000
All categories combined
including self employer and
employeed.
SENSITIVE PRICE INDICATOR (SPI), CONSUMER PRICE INDEX (CPI)
AND WHOLESALE PRICE INDEX (WPI) AT VARIOUS POINTS OF TIME
2000-2001=100
PERIOD
PERCENTAGE CHANGE OVER
PREVIOUS PERIOD/MONTHS
I N D I C ES
2000-2001
SPI
100.00
CPI
100.00
WPI
100.00
SPI
--
CPI
--
WPI
---
2001-2002
103.37
103.54
102.08
3.37
3.54
2.08
2002-2003
107.06
106.75
107.77
3.58
3.10
5.57
2003-2004
114.38
111.63
116.29
6.83
4.57
7.91
2004-2005
127.59
121.98
124.14
11.55
9.28
6.75
2004-2005 (JUL-MAR)
126.48
120.57
122.48
11.82
9.06
6.79
2005-2006 (JUL-MAR)
134.89
130.52
135.42
6.65
8.25
10.57
2006 138.65
132.97
138.13
0.84
0.23
0.07
MARCH
Dissemination of Price Data
•
•
•
•
•
WPI Intercity Prices of 18 cities.(Monthly/Yearly)
CPI Intercity Prices of 35 cities(Monthly/Yearly)
WPI indices for 5 commodity groups.
CPI indices for 10 commodity groups.
CPI indices, 4 income groups,10 commodity groups
and 17 CPI cities.
• Combined CPI indices for 10 commodity groups for 35
CPI cities.
• Intercity prices of construction items.
• SPI indices by income groups on monthly basis
FUTURE PLANNING
1. Change of base of CPI, WPI & SPI from 20002001 to 2006-2007.
2. Rural areas will be covered in CPI.
3. Rent will be computed on rent survey basis.
4. COICOP classification will be used in CPI and
CPC in WPI.
5. Enhance scope of indices in terms of
cities/items and income groups.
THANK YOU