Volume 1: Consumer Price Indices

Fiji

Official title

Consumer Price Index.

Scope

The index is computed monthly and covers urban households in six major urban centres.

Official base

1985 = 100.

Source of weights

The weights and selected items were derived from a household expenditure survey conducted from February 1983 to January 1984 among a sample of 4,402 households throughout Fiji. The index relates to 1,756 households in urban areas. The weights were not adjusted to take into account price changes between the survey period and the base period.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food 103339.3...
Alcoholic drinks and tobacco 763.8...
Housing (rent, rates, maintenance) 9186.1...
Fuel and light 348.7...
Durable household goods 3675.6...
Clothing and footwear 3263.1...
Transport 15112.9...
Services 2767.5...
Miscellaneous 3543.0...
Total 2671000.0...

Household consumption expenditure

Excluded are income tax, payments to savings and pension funds, life insurance premiums, house purchases and mortgage interest, subscriptions to unions and betting payments.

Method of data collection

Prices are collected during the middle of two weeks each month from centres in the Suva-Nausori area and the middle week from centres in Ba, Lautoka, Nadi and Labasa. As an index based on the consumption pattern of all urban dwellers in Fiji, the Suva-Nausori area was considered as representative of the central division, Labasa the northern division and centres in Ba, Lautoka and Nadi were considered as representative of in the western division. Together, the price changes in these areas are considered to be representative of price movements in all urban areas of Fiji.

The prices collected for the construction of the index are those charged in cash transactions. Price collectors visit each centre and personally note down the prices and weights of items displayed in shops. If the prices are not marked or are illegible, the investigators are instructed to obtain the information directly from supermarket managers or supervisors. Prices for items on sale or specials are recorded when they apply to items in the index, except when the price has been reduced due to damage, shop-soiled or any form of deterioration of the goods. The latter conditions reflect changes in the quality of the merchandise and price variations caused by quality differences are excluded from the index.

Officers of the Bureau of Statistics visit each pricing establishment personally to record prices. Information relating to services levied by the Government and statutory bodies is obtained directly from them. Consistency in terms of visiting the establishment at the same time and day of the week is maintained each month, especially at regional municipal markets where there can be considerable variation in prices between the morning and afternoon.

Food items for pricing purposes are divided into municipal market items and supermarket items. Items in supermarkets are well defined in terms of size and brand, and prices are read from the tags. With the market items, however, officers carry their own scales to weigh and price items. Generally, three samples of an item are taken from various vendors in the market and the average price per unit weight is later computed in the office. Markets are visited on Fridays and Saturdays at specified times in the morning. This is to capture normal prices for perishable goods which often deteriorate towards the end of the day when they are generally sold at reduced prices.

Cooking gas, white benzine and kerosene are priced from the usual pricing establishments while electricity tariffs obtained directly from the Fiji Electricity Authority are regularly checked for possible changes.

Housing

The major component of this section is rent. The sample was chosen from among the rented households identified during the expenditure survey, and represents a random selection of all rented households of Fiji citizens during 1983. Data on rental charges are collected each month along with prices for other items. On each visit, households are asked for any improvements to the houses and any increase in rent due to such improvements is adjusted for a change in quality. Other items, such as those used for maintenance, are priced in the usual way during visits to hardware shops each month.

Specification of varieties

An important consideration after the items were selected for the index was to decide which particular brand and what size of packet or how many brands of a particular item were to be priced. If a particular item was overwhelmingly popular, it was easy to choose this from the expenditure and brand details recorded by households in their weekly diaries issued during the survey. However, in many cases, additional details had to be obtained from distributors and supermarket supervisors before final selections could be made. The criteria for an item to be included in the index were that it should be representative, a good-seller and generally available in major centres throughout Fiji.

Substitution, quality change, etc.

If an item is not available, the price is generally repeated for three months and then a substitute is selected. Care is taken to ensure that the substitute item is as similar to the original as possible in terms of quality, size and end-use.

Seasonal items

For seasonal items such as fresh fruit and vegetables, the closing prices for the previous season are maintained during the off season.

Computation

The national urban index (for the main island of Fiji) is computed as the weighted average of three separate indices relating to the central, western and northern regions. Each regional index is computed according to the Laspeyres formula as a weighted arithmetic average with fixed base, using weights corresponding to February 1983-January 1984. The three regional indices are then combined into a national urban index according to the proportionate expenditure for each region, the proportions being 0.571 for the central region, 0.361 for the western region and 0.068 for the northern region.

To compute the item indices, the weighted average of price relatives between the current and base periods is used.

Other information

Major sub-group indices are published.

Organisation and publication

Bureau of Statistics, Suva: Statistical News.

Idem: Methodological Report on the Consumer Price Index (Base average 12 months 1985 = 100), Parliamentary Paper No. 22 of 1988.