Volume 1: Consumer Price Indices

Albania

Official title

Consumer Price Index.

Scope

The index is computed monthly and relates to average urban households in the whole country.

Official base

December 1990 = 100.

Sources of weights

The weights and selected items were derived from various sources. The primary data source for expenditures on food, clothing and household goods were the retail sales data of the Ministry of Internal Trade and Tourism; these data were divided by the number of households to obtain the average spending per household. Expenditure data on housing, transport and communication were taken from the results of an experimental household expenditure survey conducted in 1990 and covering a small sample of urban households. Data for the remaining expenditure groups including education, recreation and personal care, were estimated.

Weights and composition

Major groups	Number of items	Weights	Approx. No. of price quotation
Food, beverages and tobacco	89	63.0	3,916
Clothing and footwear	49	12.0	2,156
Rent and water	5	2.5	220
Fuel and light	5	2.8	220
Furniture and furnishings	13	2.6	572
Household appliances	14	3.1	616
Personal and medical care	9	1.6	396
Transport and communication	7	4.5	308
Education and recreation	13	7.4	572
Total	204	100.0	8,976

Household consumption expenditure

Not available.

Sample selection

A representative sample of goods and services normally consumed by the population was included in the list of items. The selection was based on the relative importance of the items, their representativeness in price movements for similar or related items, and their availability for periodic pricing. For example, the item chicken was chosen for its own importance and also to represent minor poultry products such as turkey and duck meat. Items that were insignificant or difficult to specify were excluded from the basket, but their share of total spending was distributed among related items.

Method of data collection

Prices are collected once per month by agents in all districts of the country but only eleven major districts are included in the computation of the national index. Prices for electricity, water, transport and communication have been fixed by the government. They change only according to the decisions of the Council of Ministers. For items that are sold both from the state and in the free market, both prices are collected. Black market prices are also included. Prices quoted through discounts, prices of used goods and hire purchase or credit terms are excluded.

Housing

Rent data of state-owned apartments with one or two rooms with kitchen and the rent of private rooms are obtained monthly. Owner-occupied housing cost is excluded from the index.

Specification of varieties

There are no detailed specifications for each item. The price collector in each district chooses those qualities and varieties available on the market.

Substitution, quality changes

Quality changes are treated as price changes. In general there is only one quality in the market in a given period of time. If this quality changes in the next period, the consumers are obliged to buy the new quality, with a different price.

Seasonal items

There is no special treatment for the seasonal items in the index.

Computation

The index is computed according to the Laspeyres formula as a weighted arithmetic average with fixed base, the weights corresponding to the base period. Each month, four prices are collected for each item. The price relative for each item is calculated by dividing the sum of these four prices for the current period by the sum of the preceding period.

Other information

None.

Organisation and publication

The Directorate of Statistics, Department of Prices is responsible for computation of the index.