‫ﻢﻳﺣﺭﻠﺍ ﻥﻣﺣﺭﻠﺍ ﷲﺍ ﻢﺴﺑ‬

USERS PRODUCERS
WORKSHOP
PRESENTATION ON PRICE
STATISTICS
BY
ABDUL AZEEM SAHITO
DIRECTOR
PRICE STATISTICS SECTION
FBS, KARACHI
 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)
 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”.
 SENSITIVE PRICE
INDICATOR (SPI)

• Sensitive Price Indicator (SPI) is

designed to assess price movement of
essential consumer items at short
intervals (on weekly basis ).
 WHOLE SALE PRICE INDEX (WPI)

Wholesale price index ( WPI) is designed to

measure the change of price in the primary
and wholesale markets.
 Why Three Types of Indices?
• CPI measures Inflation rate in the country
• SPI is computed to assess the price
movement of essential commodities at short
interval of time to review the price situation
in the country.
• WPI measures the General Price level in
the whole sale market.
 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 of price
fluctuation on the trend.
Selection of Markets/Outlets
and Cities
• Items are selected on the basis of Family Budget
Survey
• Markets are selected through retail and wholesale
trade survey.
• Outlets are selected on transaction value basis.
• Cities are selected on population basis
• Stratified sampling are used for selection of
cities.
 Weights for CPI
The results of Family Budget Survey provide the average
percentage expenditure(Consumption pattern) of Households on
each 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%
 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 26
10. Medicines/Medicare 2.07 29
TOTAL 100.00 374
 COVERAGE OF CITIES AND MARKETS IN BASE
YEAR FOR CPI 2000-2001
No of No of
Name of City Name of City
Markets Markets

Punjab
1. Islamabad (Federal 10. Jhang 01
04
Capital Area) *
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
 COVERAGE OF CITIES AND MARKETS IN BASE
YEAR FOR CPI 2000-2001
Name of City No of Name of City No of
Markets 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
INCOME GROUPS OF CPI
1. Up to Rs. 3000.00
2. Rs. 3001.00 - 5000.00
3. Rs. 5001.00 – 12000.00
4. Above Rs. 12000.00
 Time table for Collection of Prices
Part-I Monthly 11-14 of each
Food, Beverages Tobacco month
Part-II Monthly 01-03 of each
Apparel, Textile and Foot Wear month
Fuel and Lighting
Part-III Monthly 04-06 of each
House Hold, Furniture & Equipment month
Transport & Communication
Part-IV Monthly 07-10 of each
Recreation, Entertainment & Education, month
Cleaning, Laundry & Personal Appearance
& Medicines
Part- VII Monthly 13-15 of each
WHOLE SALE PRICE month
Part-VI Weekly Each Thursday
S.P.I
Daily Prices of 18 items Daily Daily
 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.
 EXAMPLE FOR COMPUTATION OF CPI
BASE PRICE IN WEIGHT Po / Pn x
ITEM UNIT Pn / Po
PRICE (Po) MAR, 06 (Pn) (Wi) 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 Wi
Index = -------------------------------- x 100
 Wi

1.3246
I = -------------------------- x 100 = 123.41
1.0733
 COVERAGE FOR VARIOUS CPI BASE YEARS
ITEMS 1948-49 = 100 1955-56 = 100 1969-70 = 100 1975-76 = 100 1980-81 = 100 1990-91 = 100 2000-01 = 100
OCCUPATIONAL All categories
Industrial Industrial Industrial Industrial Industrial Industrial
CATEGORY combined
Clerical Commercial Commercial Commercial Commercial
Government Government Government Government
Self Employer &
employed
NUMBER OF ITEMS 202 357 464 460 374
NUMBER OF
COMMODITY 4 4 4 4 9 9 10
GROUPS
NUMBER OF CITIES 4 4 12 12 25 25 35
% OF TOTAL
URBAN 57% 57% 63% 63.13% 65%
POPULATION
NUMBER OF
28 28 65 61 71
MARKETS
NUMBER OF
22624 39984 116928 112240 106500
QUOTATIONS
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
 Limitation of CPI
1) Coverage is limited
2) 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 total
consumer’s expenditure.
 WHOLE SALE PRICE INDEX (2000-01)
• Coverage:
Commodities: 106 Items 425 Price Quotations 1550
• CITIES:- 18 Major Cities
1. Lahore 2. Faisalabad 3. Rawalpindi 4. Multan 5. Gujranwala
6. Sialkot 7. Sarghoda 8. Bahawalpur 9. Sahiwal 10. Karachi
11. Hyderabad 12. Sukkur 13. Nawabshah 14. Larkana
15. Peshawar 16. Quetta. 17. Mirpurkhas 18.Mingora
• GROUPS & WEIGHTS:-
Commodity Group Weight No. of Items No. of Commodities No. of Price
Quotation
FOOD 42.12 106 43 693
RAW MATERIALS 7.99 25 09 104
FUEL, LIGHTING 19.29 17 11 36
& LUBRICANTS
MANUFACTURES 25.87 227 32 564
BUILDING
MATERIALS 4.73 50 11 153
TOTAL 100.00 425 106 1550
• PERIODICITY OF PRICE COLLECTION: - 11th to 14th of Each Month (Monthly)
 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%
 Whole Sale Price Index (WPI)Historical Changes

BASE No of No of Price No. Of Commodity groups

YEAR Commodities Quotations Cities

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
Manufactures
Building Materials
1980-81=100 91 690 22 Food
Raw Materials
Fuel,lighting & lubricants
Manufactures
Building Materials
1990-91=100 96 1210 16 Food
Raw Materials
Fuel,lighting & lubricants
Manufactures
Building Materials
Food
2000-01=100 106 1550 18 Raw Materials
Fuel, Lighting& Lubricants
Manufactures
Building Materials
 SENSITIVE PRICE INDICATOR
• Coverage:
(2000-01=100 )
• Items: 53
• Markets: 53
• Price quotations: 10812
• CITIES:- 17 MAJOR CITIES
1. Lahore 2. Faisalabad 3. Rawalpindi 4. Islamabad
5. Multan 6. Gujranwala 7.Sialkot 8. Sargodha
9. Bahawalpur 10. Karachi 11. Hyderabad 12. Sukkur
13. Larkana 14. Peshawar 15. Bannu 16.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)
 LIST OF ITEMS OF SPI
S.N ITEM S.N ITEM
1 W heat 28 Beef with Bone
2 W heat Flour 29 Mutton
3 Rice Bas mati (Broken) 30 Tae(Prepared)
4 Rice Irri-6 31 Cooked Beef(Plate)
5 Mas oor Puls e 32 Cooked Dal (Plate)
6 Eggs 33 Cigrettes K-2
7 Bread plain 34 Latha(coars e)
8 Sugar 35 Lawn
9 Gur 36 Voil
10 Milk Fres h 37 Shirting
11 Milk Powdered (Nido) 38 Sandal Gents (Bata)
12 Curd 39 Sandal Ladies (Bata)
13 Vegetable Ghee(Tin) 40 Chappal s pounge(bata)
14 Vegetable Ghee(Loos e) 41 Keros ine Oil
15 Mus tard Oil 42 Fire W ood
16 Cooking Oil(Dalda) 43 Electric Bulb(60 W atts )
17 Potatoes 44 Match Box
18 Onions 45 W as hing Soap
19 Tomatoes 46 Bath Soap(Life Buoy)
20 Bananas 47 Chicken Farm
21 Salt 48 Gas Charges
22 Red Chillies 49 Electric Charges
23 Garlic 50 Telephone Charges (Local)
24 Tea Packet 51 Patrol
25 Moong Puls e 52 Dies el
26 Mas h Puls e 53 L.P.G
27 Gram Puls e Total Items 53
 Sensitive Price Indicator (SPI) Historical Changes

BASE YEAR NO OF NO OF NO OF INCOME OCCUPATIONAL

CITIES ITEMS MARKETS GROUP 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.
SENSITIVE PRICE INDICATOR (SPI), CONSUMER PRICE INDEX (CPI)
AND WHOLESALE PRICE INDEX (WPI) AT VARIOUS POINTS OF TIME
2000-2001=100
PERCENTAGE CHANGE OVER
PERIOD I N D I C ES
PREVIOUS PERIOD/MONTHS
SPI CPI WPI SPI CPI WPI
2000-2001 100.00 100.00 100.00 -- -- ---
2001-2002 103.37 103.54 102.08 3.37 3.54 2.08
2002-2003 107.06 106.75 107.77 3.58 3.10 5.57
2003-2004 114.38 111.63 116.29 6.83 4.57 7.91
2004-2005 127.59 121.98 124.14 11.55 9.28 6.75
2004-2005 (JUL-MAR) 126.48 120.57 122.48 11.82 9.06 6.79
2005-2006 (JUL-MAR) 134.89 130.52 135.42 6.65 8.25 10.57
MARCH 2006 138.65 132.97 138.13 0.84 0.23 0.07
 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
 FUTURE PLANNING
1. Change of base of CPI, WPI & SPI from 2000-
2001 to 2006-2007.
2. Rural areas will be covered in CPI.
3. Rent will be computed on rent survey basis.
4. COICOP classification will be used in CPI and
CPC in WPI.
5. Enhance scope of indices in terms of
cities/items and income groups.
THANK YOU