Ecuador
Official title
Indice de precios al consumidor - área urbana nacional (Consumer
Price Index - National Urban Area).
Scope
The index is computed monthly and covers low- and middle-income
group families in urban areas.
Official base
May 1978-April 1979 = 100.
Source of weights
The weights and selected items were derived from a household
expenditure survey conducted between July 1975 and June 1976 in
12 towns with more than 10,000 inhabitants. The survey was
conducted during 52 weeks among low- and middle-income group
families. The weighting pattern was adjusted for price changes
between 1976 and 1978-79.
Weights and composition
| Major groups
| Number of items
| Weights
| Approximate number of price quotations
|
| Food
| 18 | 396.0 | 2413
|
| Housing:
|
| Rent
| 1 | 161.0 | 1400
|
| Fuel and light
| 1 | 29.6 | 47
|
| Furniture, furnishings and household equipment
| 6 | 56.0 | 332
|
| Clothing and footwear
| 5 | 107.7 | 1060
|
| Miscellaneous
| 8 | 249.7 | 1354
|
| Total
| (a) 39 | 1000.0 | 6606
|
Note: (a) These are sub-groups representing between 150 and 170 items according to town.
Household consumption expenditure
Consumption expenditure comprises all disbursements made by the
households for buying consumer goods and services. Income in kind and
owner-occupied housing are taken into account in income and expenditure.
Durable goods bought during the reference period are taken into account.
For credit purchases, only the amount paid during the reference period
is included in expenditure. Second-hand purchases are excluded. Social
security taxes deducted from gross income are considered as consumption
expenditure. Payments made during the reference period for insurance of
consumer goods and for life insurance are included.
Method of data collection
The prices for certain food items of major consumption are
ascertained weekly or fortnightly by direct buying in various
markets. The prices of other items and services are obtained by
investigators. All prices are those actually paid by
the consumer, and include indirect taxes but exclude discount and
sale prices, second-hand purchases and import prices. Prices
fixed by the authorities are taken into account only when they
are actually paid by consumers.
Housing
Rent quotations are obtained from a sample of houses, apartments and
rooms. Each month, a sixth of the sample is surveyed. A weighted
arithmetic average is used for computing the index. No account is taken
of owner-occupied dwellings.
Specification of varieties
The specifications of varieties relate to those items and services of
major consumption and describe brand, dimension, weight, unit,
etc.
Substitution, quality change, etc.
If an item disappears from the market, it is replaced by another
with similar characteristics. If there is a quality change,
the item is considered to be a new one and adjustments are made
using the linking method.
Seasonal items
The choice of items included in the index has been made so as
to ensure continuity of price collection throughout the year;
however, if an item is not available on the market in
certain months, the price quotation of the previous month is
maintained.
Computation
The index is computed according to the Laspeyres formula as a
weighted arithmetic average with fixed base, using weights
corresponding to the base period.
Indices are calculated separately for each of the 12 towns according
to the Laspeyres formula; the regional and national indices are
computed using estimated population weights for 1979.
Organisation and publication
Instituto Nacional de Estadística y Censos: Indice de Precios
al Consumidor Area Urbana Nacional
(Quito).