CPI CONCEPTES
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Transcript of CPI CONCEPTES
مسب هللا نمحرلا ميحرلا-NOSSCIRE-
USERS PRODUCERS WORKSHOP
PRESENTATION ON PRICE STATISTICS
BY WAQAS AHMED
PRICE STATISTICS SECTIONFBS, KARACHI
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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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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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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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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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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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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-
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-
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-
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-
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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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-
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-
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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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-
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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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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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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THANK YOUTHANK YOU
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