2. USERS PRODUCERS WORKSHOP PRESENTATION ON PRICE STATISTICS
BYWAQAS AHMED PRICE STATISTICS SECTION FBS, KARACHI -NOSSCIRE- 3.
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)
-NOSSCIRE- 4. 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.
-NOSSCIRE- 5. SENSITIVE PRICE INDICATOR (SPI)
- Sensitive Price Indicator (SPI) is designed to assess price
movement of essential consumer items at short intervals (on weekly
basis ).
-NOSSCIRE- 6. WHOLE SALE PRICE INDEX (WPI) Wholesale price index
( WPI) is designed to measure the change of price in the primary
and wholesale markets. -NOSSCIRE- 7. Why Three Types of
Indices?
- CPImeasures Inflation rate in the country
- SP Iis computed to assess the price movement of essential
commodities at short interval of time to review the price situation
in the country.
- WPImeasures the General Price level in the whole sale
market.
-NOSSCIRE- 8. 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 ofprice
fluctuation on the trend.
-NOSSCIRE- 9. Selection of Markets/Outlets and Cities
- Itemsare selected on the basis of Family Budget Survey
- Marketsare selected through retail and wholesale trade
survey.
- Outletsare selected on transaction value basis.
- Citiesare selected on population basis
- Stratified samplingare used for selection of cities.
-NOSSCIRE- 10. Weights for CPI
- The results of Family Budget Survey provide the average
percentage expenditure(Consumption pattern) of Households on each
item/each commodity group andfor 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.
- 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- 11. Commodity Groups WiseItems and WeightsC.P.I
(2000-01)
- Commodity Group Weights Items
- 01. Food, Beverages & Tobacco40.34124
- 02. Apparel, Textile & Footwear 6.1042
- 04. Fuel & Lightening 7.2915
- 05. House Hold, Furniture & Equipment etc.3.2944
- 06. Transport & Communication 7.3242
- 07. Recreation & Entertainment 0.8316
- 09. Cleaning, Laundry & Personal Appearance5.8826
- 10.Medicines/Medicare 2.0729
-NOSSCIRE- 12. COVERAGE OF CITIES AND MARKETS IN BASE YEAR FOR
CPI2000-2001 -NOSSCIRE- 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 13. COVERAGE OF
CITIES AND MARKETS IN BASE YEAR FOR CPI2000-2001 -NOSSCIRE- 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 14. INCOME GROUPS OF CPI
-NOSSCIRE- 15. Time table for Collection of Prices -NOSSCIRE-
Part-I Food, Beverages TobaccoMonthly 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
& CommunicationMonthly 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 DailyDaily 16. FORMULA USED
FOR COMPUTATION OF CPI
- Laspeyre's formula as given below is being used for the
computation of CPI.
- In = ---------------------x 100
- 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.
-NOSSCIRE- 17. EXAMPLE FOR COMPUTATION OF CPI (P n /P o ) x W i
Index = -------------------------------- x 100 W i 1.3246 I =
-------------------------- x 100 = 123.41 1.0733 -NOSSCIRE- ITEM
UNIT BASE PRICE (P o ) PRICE IN MAR, 06 (P n ) WEIGHT (W i ) P n/ P
o P o/ P nx W i 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 18. -NOSSCIRE- 19. Limitation of
CPI
- Only covers Urban Centres
- Prices may have different trend in rural & urban
centres.
- Rent is computed through construction input items index instead
of rent survey.
- It measures partially inflation not total consumers
expenditure.
-NOSSCIRE- 20. WHOLE SALE PRICE INDEX (2000-01 )
- Commodities:106 Items 425 Price Quotations 1550
- 1.Lahore2.Faisalabad3.Rawalpindi4.Multan5. Gujranwala
- 6.Sialkot7.Sarghoda8.Bahawalpur9. Sahiwal10. Karachi
- 11. Hyderabad12.Sukkur13.Nawabshah14. Larkana
- 15. Peshawar16. Quetta.17. Mirpurkhas18.Mingora
- Commodity GroupWeightNo. of ItemsNo. of CommoditiesNo. of
Price
- RAW MATERIALS7.992509 104
- FUEL, LIGHTING 19.29 17 11 36
- MANUFACTURES25.87227 32 564
- PERIODICITY OF PRICE COLLECTION:-11 th to 14 th ofEach Month
(Monthly)
-NOSSCIRE- 21. 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%
-NOSSCIRE- 22. Whole Sale Price Index (WPI)Historical Changes
-NOSSCIRE- BASE YEAR No of Commodities 106 No ofPrice Quotations
No. OfCities Commodity groups 1959-60=100 64 201 22 Food Raw
Materials Fuel,lighting & lubricants manufactures 1969-70=100
72 433 22 Food Raw Materials Fuel,lighting & lubricants
manufactures 1975-76=100 87 625 22 Food Raw Materials Fuel,lighting
& lubricants ManufacturesBuilding Materials 1980-81=100 91 690
22 Food Raw Materials Fuel,lighting & lubricants
ManufacturesBuilding Materials 1990-91=100 96 1210 16 Food Raw
Materials Fuel,lighting & lubricants ManufacturesBuilding
Materials 2000-01=100 1550 18 Food Raw Materials Fuel,
Lighting& Lubricants ManufacturesBuilding Materials 23.
SENSITIVE PRICE INDICATOR (2000-01=100 )
- 1. Lahore2. Faisalabad3. Rawalpindi4. Islamabad
- 5. Multan6. Gujranwala 7.Sialkot8. Sargodha
- 9. Bahawalpur10. Karachi11.Hyderabad 12. Sukkur
- 13. Larkana14. Peshawar15. Bannu16.Quetta
- 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)
-NOSSCIRE- 24. LIST OF ITEMS OF SPI -NOSSCIRE- 25. Sensitive
Price Indicator (SPI) Historical Changes -NOSSCIRE- BASE YEAR NO
OFCITIES NO OFITEMS NO OFMARKETS INCOMEGROUP 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. 26. -NOSSCIRE- 27.
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
-NOSSCIRE- 28. FUTURE PLANNING
- Change of base of CPI, WPI & SPI from 2000-2001 to
2006-2007.
- Rural areas will be covered in CPI.
- Rent will be computed on rent survey basis.
- COICOP classification will be used in CPI and CPC in WPI.
- Enhance scope of indices in terms of cities/items and income
groups.
-NOSSCIRE- 29. THANK YOU -NOSSCIRE-