Volume 1: Consumer Price Indices

Ethiopia (Addis Ababa)

Official title

Retail Price Index for Addis Ababa.

Scope

The index is compiled monthly and covers urban households with monthly incomes below 400 Birrs during 1963.

Official base

1963 = 100.

Source of weights

The original weights and selected items were derived from a household expenditure survey conducted in Addis Ababa in 1963 among a sample of about 600 households.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food and tobacco 3348.98318
Rent .........
Fuel and light 410.2342
Household items 34.3733
Transport 34.5230
Clothing and footwear 66.7130
Personal and medical care 112.6487
Reading and recreation 52.5725
Other goods and services 95.4336
Total 7485.45601

Household consumption expenditure

Consumption expenditure for the purpose of the index comprises all goods and services purchased for consumption by the index population. It also includes insurance associated with specific consumer goods and licence fees. Income tax, life insurance payments and savings are excluded.

Method of data collection

Prices are collected by the permanent staff of the Central Statistical Office from about 545 retail stores, open markets and service establishments.

Prices are collected each month for most of the items. Prices for durable consumer goods, clothing, transportation and miscellaneous items are collected once every three months.

The prices used to calculate the index are the retail prices actually paid. Sale and discount prices are not taken into account.

Housing

The index excludes rent.

Specification of varieties

All items covered by the consumer price survey are specified in considerable detail so that complications in the collection of data are avoided. The specifications describe the make, brand, unit, colour, physical state, etc., of each item included in the sample.

Substitution, quality change, etc.

If an item disappears from the market, it is either substituted by a similar item or the last price is kept until it reappears on the market.

Seasonal items

Retail prices of fish, meat, all kinds of fruits and vegetables, exercise books, pencils, umbrellas and rubber boots show seasonal variations, but no seasonal index is constructed nor are these items treated in a special way.

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.

Organisation and publication

Central Statistical Office: Statistical Abstract (Addis Ababa).