CPI CONCEPTES

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Transcript of CPI CONCEPTES

Page 1: CPI CONCEPTES

مسب هللا نمحرلا ميحرلا-NOSSCIRE-

Page 2: CPI CONCEPTES

USERS PRODUCERS WORKSHOP

PRESENTATION ON PRICE STATISTICS

BY WAQAS AHMED

PRICE STATISTICS SECTIONFBS, KARACHI

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Page 3: CPI CONCEPTES

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)

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Page 4: CPI CONCEPTES

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”.

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SENSITIVE PRICE INDICATOR (SPI)

• Sensitive Price Indicator (SPI) is designed to assess price movement of essential consumer items at short intervals (on weekly basis ).

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WHOLE SALE PRICE INDEX (WPI) 

Wholesale price index ( WPI) is designed to measure the change of price in the primary and wholesale markets.  

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Page 7: CPI CONCEPTES

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.

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Page 8: CPI CONCEPTES

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.

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Page 9: CPI CONCEPTES

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.

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Page 10: CPI CONCEPTES

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%-NOSSCIRE-

Page 11: CPI CONCEPTES

Commodity Groups Wise Items and Weights C.P.I (2000-01)

• Commodity Group Weights Items

01. Food, Beverages & Tobacco 40.34 12402. Apparel, Textile & Footwear 6.10 4203. House Rent 23.43 0104. Fuel & Lightening 7.29 1505. House Hold, Furniture & Equipment etc. 3.29 4406. Transport & Communication 7.32 4207. Recreation & Entertainment 0.83 1608. Education 3.45 2409. Cleaning, Laundry & Personal Appearance 5.88 2610. Medicines/Medicare 2.07 29 TOTAL 100.00 374

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COVERAGE OF CITIES AND MARKETS IN BASE YEAR FOR CPI 2000-2001

Name of CityNo of

MarketsName of City

No of Markets

Punjab1. Islamabad (Federal Capital Area) *

0410. 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-NOSSCIRE-

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COVERAGE OF CITIES AND MARKETS IN BASE YEAR FOR CPI 2000-2001

Name of City No of Markets

Name of City No of Markets

Sindh 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 Balochistan25. Shahdadpur 01 32. Quetta * 02

26. Kunri 01 33. Khuzdar * 01

34. Turbat 01

35. Loralai 01

Total Cities = 35 Total Markets = 71

* Cities also included in SPI cities-NOSSCIRE-

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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

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Time table for Collection of PricesPart-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-NOSSCIRE-

Page 16: CPI CONCEPTES

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.  

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EXAMPLE FOR COMPUTATION OF CPI

ITEM UNITBASE

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

        1.0733   1.3246

( Pn/Po) x Wi

Index = -------------------------------- x 100 Wi

  

1.3246I = -------------------------- x 100 = 123.41 1.0733

 

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ITEMS 1948-49 = 100 1955-56 = 100 1969-70 = 100 1975-76 = 100 1980-81 = 100 1990-91 = 100 2000-01 = 100OCCUPATIONAL CATEGORY

Industrial Industrial Industrial Industrial Industrial IndustrialAll categories

combinedClerical Commercial Commercial Commercial Commercial

Government Government Government GovernmentSelf Employer &

employedNUMBER OF ITEMS 202 357 464 460 374NUMBER OF COMMODITY GROUPS

4 4 4 4 9 9 10

NUMBER OF CITIES 4 4 12 12 25 25 35% OF TOTAL URBAN POPULATION

57% 57% 63% 63.13% 65%

NUMBER OF MARKETS

28 28 65 61 71

NUMBER OF QUOTATIONS

22624 39984 116928 112240 106500

INCOME GROUPS 1. Up to Rs 68-130 1. Up to Rs. 105-130 1. Up to Rs. 300 1. Up to Rs. 600 1. Up to Rs. 1000 1. Upto Rs. 1500 1. Upto Rs. 30002. Rs. 218-332 2. Rs. 301-500 2. Rs. 601-1500 2. Rs. 1001-2500 2. Rs. 1501 - 4000 2. Rs. 3001 - 5000

3. Rs. 501 - 1000 3. Rs. 1501 - 2500 3. Rs. 2501-4500 3. Rs. 4001 - 7000 3. Rs. 5001 - 120004. Above Rs. 1000 4. Above Rs. 2500 4. Above Rs. 4500 4. Rs. 7001 - 10000 4. Above Rs. 12000

5. Above Rs. 10000

COVERAGE FOR VARIOUS CPI BASE YEARS

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Page 19: CPI CONCEPTES

Limitation of CPI1) 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.

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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 693RAW MATERIALS 7.99 25 09 104FUEL, LIGHTING 19.29 17 11 36& LUBRICANTS MANUFACTURES 25.87 227 32 564BUILDING MATERIALS 4.73 50 11 153TOTAL 100.00 425 106 1550

• PERIODICITY OF PRICE COLLECTION: - 11th to 14th of Each Month (Monthly)-NOSSCIRE-

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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%

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Whole Sale Price Index (WPI)Historical Changes

BASE YEAR

No ofCommodities

106

No of PriceQuotations

No. Of Cities

Commodity groups

1959-60=100 

64 201 22 FoodRaw MaterialsFuel,lighting & lubricantsmanufactures

1969-70=100 

72 433 22 FoodRaw MaterialsFuel,lighting & lubricantsmanufactures

1975-76=100 87 625 22 

FoodRaw MaterialsFuel,lighting & lubricantsManufactures Building Materials

1980-81=100 91 690 22 FoodRaw MaterialsFuel,lighting & lubricantsManufactures Building Materials

1990-91=100 96 1210 16 FoodRaw MaterialsFuel,lighting & lubricantsManufactures Building Materials

2000-01=100

   

1550 18FoodRaw MaterialsFuel, Lighting& LubricantsManufactures Building Materials-NOSSCIRE-

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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)

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Page 24: CPI CONCEPTES

LIST OF ITEMS OF SPIS.N ITEM S.N ITEM

1 Wheat 28 Beef with Bone2 Wheat Flour 29 Mutton3 Rice Basmati (Broken) 30 Tae(Prepared)4 Rice Irri-6 31 Cooked Beef(Plate)5 Masoor Pulse 32 Cooked Dal (Plate)6 Eggs 33 Cigrettes K-27 Bread plain 34 Latha(coarse)8 Sugar 35 Lawn9 Gur 36 Voil

10 Milk Fresh 37 Shirting11 Milk Powdered (Nido) 38 Sandal Gents(Bata)12 Curd 39 Sandal Ladies(Bata)13 Vegetable Ghee(Tin) 40 Chappal spounge(bata)14 Vegetable Ghee(Loose) 41 Kerosine Oil15 Mustard Oil 42 Fire Wood16 Cooking Oil(Dalda) 43 Electric Bulb(60 Watts)17 Potatoes 44 Match Box18 Onions 45 Washing Soap19 Tomatoes 46 Bath Soap(Life Buoy)20 Bananas 47 Chicken Farm21 Salt 48 Gas Charges22 Red Chillies 49 Electric Charges23 Garlic 50 Telephone Charges(Local)24 Tea Packet 51 Patrol25 Moong Pulse 52 Diesel26 Mash Pulse 53 L.P.G27 Gram Pulse Total Items 53-NOSSCIRE-

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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 employeesCommercial employeesGovernment employees

1975-76=100 

12 38 22 Upto Rs.600 Industrial employeesCommercial employeesGovernment employees

1980-81=100 12 46 50 

Upto Rs.1000 Industrial employeesCommercial employeesGovernment employees

1990-91=100 12 47 48 Upto Rs.1500 Industrial employeesCommercial employeesGovernment employees 

2000-01=100 17 53 53 Upto Rs.3000 All categories combined including self employer and employeed.

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2000-2001=100

SPI CPI WPI SPI CPI WPI

100.00 100.00 100.00 -- -- ---

103.37 103.54 102.08 3.37 3.54 2.08

107.06 106.75 107.77 3.58 3.10 5.57

114.38 111.63 116.29 6.83 4.57 7.91

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

MARCH 2006 138.65 132.97 138.13 0.84 0.23 0.07

2000-2001

2002-2003

2004-2005

2003-2004

2001-2002

SENSITIVE PRICE INDICATOR (SPI), CONSUMER PRICE INDEX (CPI)AND WHOLESALE PRICE INDEX (WPI) AT VARIOUS POINTS OF TIME

PERIOD I N D I C E SPERCENTAGE CHANGE OVER PREVIOUS PERIOD/MONTHS

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Page 27: CPI CONCEPTES

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

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Page 28: CPI CONCEPTES

FUTURE PLANNING

1. Change of base of CPI, WPI & SPI from 2000-2001 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.

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Page 29: CPI CONCEPTES

THANK YOUTHANK YOU

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