1. -NOSSCIRE-

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.

P ox q o

W i= ------------- x 100

P ox q o

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

03. House Rent 23.4301

04. Fuel & Lightening 7.2915

05. House Hold, Furniture & Equipment etc.3.2944

06. Transport & Communication 7.3242

07. Recreation & Entertainment 0.8316

08. Education 3.4524

09. Cleaning, Laundry & Personal Appearance5.8826

10.Medicines/Medicare 2.0729

TOTAL 100.00374

-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

Up to Rs. 3000.00

Rs. 3001.00 - 5000.00

Rs. 5001.00 12000.00

Above Rs. 12000.00

-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.

(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.

-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

Coverage is limited

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 )

Coverage:

Commodities:106 Items 425 Price Quotations 1550

CITIES:- 18Major Cities

1.Lahore2.Faisalabad3.Rawalpindi4.Multan5. Gujranwala

6.Sialkot7.Sarghoda8.Bahawalpur9. Sahiwal10. Karachi

11. Hyderabad12.Sukkur13.Nawabshah14. Larkana

15. Peshawar16. Quetta.17. Mirpurkhas18.Mingora

GROUPS & WEIGHTS:-

Commodity GroupWeightNo. of ItemsNo. of CommoditiesNo. of Price

Quotation

FOOD42.1210643693

RAW MATERIALS7.992509 104

FUEL, LIGHTING 19.29 17 11 36

& LUBRICANTS

MANUFACTURES25.87227 32 564

BUILDING

MATERIALS4.735011 153

TOTAL100.00425 106 1550

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 )

Coverage:

Items:53

Markets:53

Price quotations:10812

CITIES:-17MAJOR CITIES

1. Lahore2. Faisalabad3. Rawalpindi4. Islamabad

5. Multan6. Gujranwala 7.Sialkot8. Sargodha

9. Bahawalpur10. Karachi11.Hyderabad 12. Sukkur

13. Larkana14. Peshawar15. Bannu16.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)

-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-