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What is CPI? |
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The CPI measures price changes in a fixed basket of consumption goods and services commonly purchased by the households over time. |
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The CPI reflects price movements and not actual price level. Suppose, in a particular period |
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2009-based CPI for Car = 110 points |
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2009-based CPI for bread = 150 points |
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This does not imply that bread was more expensive than car in absolute dollar term in that period. It simply implies that prices of car and bread have risen by 10 per cent and 50 per cent respectively since base period, i.e. 2009. |
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What is CPI used for? |
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as a measure of consumer price inflation |
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as inputs in the compilation of economic statistics at constant prices |
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as inputs in the formulation of government policies
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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 the expenditure values obtained from 2007/08 HES, and further updated to 2009’s price level
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Latest base period : 2009 = 100
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What does CPI basket cover? |
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Consumption expenditure incurred by 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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The following are the CPI series compiled by our Department : |
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General Series |
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Refers to the CPI for all resident households covered in the 2007/08 HES
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Three Income Series |
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Refer to CPIs for resident households in the lowest 20%, middle 60% and highest 20% income groups covered in the 2007/08 HES
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CPI Weights |
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The CPI weights show the relative importance of each individual item in the basket of goods and services. The weighting pattern was derived from the expenditure values of some 7,550 resident households covered in the HES 2007/08. These expenditure values were updated to 2009, taking into account price changes between 2007/08 and 2009. |
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2009-based Weighted pattern (General Series) |
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What's in the 2009-based CPI basket? |
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Essential and representative goods and services commonly purchased by the majority of the households
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6,500 brands selected in the 2009-based CPI
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Who's being surveyed? |
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A wide range of retailers and service providers commonly patronised by households
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4,200 outlets selected in the 2009-based CPI
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Price Collection |
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by personal visit |
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by postal surveys |
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by fax / email |
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The frequency of price collection depends on price behaviour of the item:
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Items with volatile prices are surveyed weekly e.g. perishable food items |
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Those with more stable prices such as utility tariffs, bus/train fares, school fees, medical services and household durables are collected monthly, quarterly, half-yearly or as and when the prices change |
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All prices are checked for consistency and accuracy
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For food items, weekly discussions are held to confirm the validity of price data
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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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