Volume 1: Consumer Price Indices

Algeria (Algiers)

Official title

Indice des prix à la consommation (Consumer Price Index).

Scope

The index is compiled monthly and relates to all households of all sizes and all socio-professional categories in Algiers.

Official base

1982 = 100.

Source of weights

The weights were derived from the results of a national household expenditure survey conducted between March 1979 and March 1980, covering a sample of 8,208 households throughout Algeria divided into six housing areas, five economic zones and 20 socio-professional categories. The index relates to all households (except single person households) of all sizes and all socio-professional categories in the town of Algiers. The articles selected were taken from a census of varieties and services consumed by households conducted in 1982. The index covers 716 varieties selected on the basis of criteria such as annual expenditure, frequency of expenditure, use. The weights of the varieties are calculated on the basis of annual expenditure in 1979. The coverage rate of the index (in terms of consumption expenditure) is 93 per cent.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food 56552.49919
Clothing and footwear 5970.6709
Housing fuel and light 972.595
Furniture and furnishings 4355.0152
Medical care 2626.56
Transport and communication 2096.147
Education and recreation 2042.328
Other goods and services 2384.6128
Total 2561000.011084

Household consumption expenditure

The consumption expenditure taken into account to establish the weights includes the goods and services recorded during the survey on household expenditure. The following are excluded: investments, property owned, national insurance and pension fund contributions, trading licences, income tax and other direct taxes, insurance premiums, remission of funds, donations and similar payments.

Method of data collection

Price quotations are obtained periodically by agents in ten geographic sectors of the town of Algiers from a sample of outlets (public and private) in accordance with a survey programme established for each group of goods and services. Declared or posted prices are recorded. The agent does not take account of official prices where they existe nor of sales or discount prices. On average almost 450 varieties are investigated each month and approximately 11,000 prices are processed each month. Fresh fruit and vegetables and fresh fish are surveyed three times a week at ten public and private retail outlets (markets); meat, poultry and eggs are surveyed twice a month at 36 public and private retail outlets. Prices for clothing are recorded every four months. Information regarding water, electricity, gas, education, transport and communications is obtained once a year and information concerning medical care is obtained twice a year.

Housing

The agents record the price of the rent plus additional expenses once a year for dwellings with three rooms, kitchen and bathroom; for the public sector they consult organisations responsible for managing buildings and for the private sector they consult households. The index for the rent group is obtained by combining the public sector index with the private sector index.

Owner-occupied dwellings are not taken into account in the computation of the index.

Specification of varieties

A census of varieties of goods and services consumed by households was conducted in 1982. On this basis of the results, almost 2,000 varieties were processed (specification, definition of the item, calculation of average price) for the index. Each variety has detailed specifications and a description of the quality, the manufacture, the make, the unit, etc.

Substitution, quality change, etc.

Changes in the quality of an article and the appearance of new articles on the market are not taken into account in the computation of the index. If an item disapears from the market it is replaced by a similar item or its weight is redistributed over the remaining items in the same sub-group.

Seasonal items

Due to the seasonal nature of their marketing, fresh fruit and vegetables receive special treatment: using a monthly high-season basket, an index is calculated which compares the costs of the current month's basket with the cost for the same month in the reference year (1982). The base prices of the varieties in the basket are monthly as are the weights. The comparison of the indices of different months does not indicate a (relative) pure variation in prices, but the ratio between the variations of prices for each month.

Computation

The index is computed according to the Laspeyres formula as a weighted arithmetic average with fixed base, the weights corresponding to 1979.

The price relative for each item is calculated by dividing the average price of the current period by the average price of the base period. Average prices are simple arithmetic means of all price quotations obtained.

Other information

At present a national index is computed by observing prices in a sample of 18 towns and villages. This has been calculated on a monthly basis since January 1989.

Organisation and publication

Office national des statistiques: Statistiques (quarterly) (Algiers).

Idem: Données statistiques (monthly).

Idem: Collections statistiques (annual).