Price-Index-Consumer-Prices .ppt

7/27/2019 Price-Index-Consumer-Prices .ppt

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USERS PRODUCERS

WORKSHOPPRESENTATION ON PRICE

STATISTICSBY

ABDUL AZEEM SAHITO

DIRECTOR

PRICE STATISTICS SECTION

FBS, KARACHI


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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 arepresentative fixed basket of goods and

services and is generally accepted as a

measure of inflation in the country.


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WHAT CPI MEASURES? It measures Price changes of fixed market

basket of goods and services of constantquality and quantity.

It tells how much cost of living has risen or

fallen due to price changes irrespective ofchanges in consumer behaviour or qualityof goods.

It does not reflect the cost of living or inhouse hold consumption expenditure assuch but only the influence of pricefluctuation 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 wholesaletrade 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 oneach 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%


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Commodity Groups Wise Items and Weights

C.P.I (2000-01)

Commodity Group Weights Items

01. Food, Beverages & Tobacco 40.34 124

02. Apparel, Textile & Footwear 6.10 42

03. House Rent 23.43 01

04. Fuel & Lightening 7.29 15

05. House Hold, Furniture & Equipment etc. 3.29 44

06. Transport & Communication 7.32 42

07. Recreation & Entertainment 0.83 16

08. Education 3.45 24

09. 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

Markets

Name of CityNo of

Markets

Punjab

1. Islamabad (Federal

Capital Area) *04

10. Jhang 01

2. Rawalpindi * 06 11. Okara 013. Lahore * 07 12. D. G. Khan 01

4. Gujranwala * 01 13. Bahawalpur * 01

5. Faisalabad * 02 14. Bahawalnagar 01

6. Multan * 03 15. Mianwali 017. Jhelum 01 16. Vehari 01

8. Sialkot * 01 17. Attock 01

9. Sargodha * 01 18. Samundari 01

* Cities also included in SPI cities



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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 Balochistan

25. 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


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INCOME GROUPS OF CPI

1. Up to Rs. 3000.00

2. Rs. 3001.00 - 5000.003. Rs. 5001.0012000.00

4. Above Rs. 12000.00


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Time table for Collection of Prices

Part-I

Food, Beverages Tobacco

Monthly 11-14 of each

month

Part-IIApparel, Textile and Foot Wear

Fuel and Lighting

Monthly 01-03 of eachmonth

Part-III

House Hold, Furniture & Equipment

Transport & Communication


month

Part-IV

Recreation, Entertainment & Education,

Cleaning, Laundry & Personal Appearance

& Medicines


month

Part- VII

WHOLE SALE PRICE


month

Part-VI

S.P.I

Weekly Each Thursday

Daily Prices of 18 items Daily Daily


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FORMULA USED FOR COMPUTATION OF CPI

Laspeyre's formula as given below is being used forthe 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 WiIndex = -------------------------------- x 100

Wi

1.3246

I = -------------------------- 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 = 100

OCCUPATIONAL

CATEGORYIndustrial Industrial Industrial Industrial Industrial Industrial

All categories

combined

Clerical Commercial Commercial Commercial CommercialGovernment Government Government Government

Self Employer &

employed

NUMBER OF ITEMS 202 357 464 460 374

NUMBER 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

QUOTATIONS22624 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. 3000

2. 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 - 12000

4. 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 CPI

1) Coverage is limited2) 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 totalconsumers expenditure.

Price-Index-Consumer-Prices .ppt

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