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What is CPI? |
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It is an index designed to measure the change in the price of a fixed basket of goods and services commonly bought by the majority of households |
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CPI does not measure price level. It reflects the price movement over time. E.g. in 2006 |
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CPI for Car is 110 points |
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CPI for Coffee is 150 points |
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but this does not mean that Coffee is more expensive than Cars |
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What is CPI used for? |
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as an indicator of inflation |
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as a price deflator in the compilation of real economic statistics and indicators |
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for maintaining purchasing power of real wages and salaries
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for international comparison |
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History |
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1st CPI series compiled in 1960 using 1956/57 Household Expenditure Survey (HES) results |
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2nd series published in 1974 based on 1972/73 HES results |
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Since then, CPI revisions have been carried out once in every 5 years |
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Last revision was based on 2002/03 HES results, and further updated to 2004’s price level
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Latest base period : 2004 = 100
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What does it cover? |
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Private Resident Households |
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Representative items commonly purchased by the majority of households. |
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CPI Series |
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Our Department compiles 4 series |
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a) |
General Series |
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Refers to the middle 90% of households by expenditure distribution in the 2002/03 HES
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b) |
Three Income Series |
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Refers to CPI for households in the lowest 20%, middle 60% and highest 20% income groups
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To assess the impact of price changes on these households
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CPI Weights |
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The CPI weights
show the relative importance of each item in the basket of goods and services. It is derived from the expenditure records of some 5,500 households covered in the HES 2002/03. |
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What's in the 2004-based CPI basket? |
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5,170 brands & varieties |
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Who's being surveyed? |
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3,000 outlets for regular pricing. |
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These include markets, supermarkets, department stores, specialty shops, government departments & statutory boards and other retail outlets. |
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Composition of 2004-based CPI basket (General Series) |
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Price Collection |
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by personal visit |
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by postal enquiry |
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The frequency of price collection depends on price behaviour:
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volatile prices are collected more frequently e.g. perishable food items - 3 times a week
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stable prices are collected monthly (e.g. haircut), quarterly (e.g. rent), yearly (e.g. road tax) or as and when they change |
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Data Processing |
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All prices are checked and verified
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For food items, weekly discussions are held
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Verified prices are then keyed into the computer for further editing and processing
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Monthly indices are then generated
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Where can CPI data be obtained? |
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Information relating to CPI revision |
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