Volume 1: Consumer Price Indices

Georgia

Official title

Consumer Price Index.

Scope

The index is computed and published monthly and covers all types of households in the country.

Official base

For calculation: December of the previous year = 100. The index base is changed each calendar year.

For publication: previous month, December of the previous year, corresponding month of the previous year.

Sources of weights

The weights of the index are derived from the Household Budget Survey carried out quarterly in Tbilisi and 8 other regions. 3,351 household addresses stratified in 48 strata are selected with two-stage probability sampling. The sample is divided into 12 rotation groups. That means that each month 8.3% of the addresses are replaced with the new ones. Each household is surveyed 4 times during the year. The survey is representative for all households in Georgia and provides weights for Tbilisi and other cities.

The survey provides, among other, information on the volume of consumption from own production and on renting and selling price of dwellings. Due to the fact that expenditure on alcoholic beverages and cigarettes are underestimated, the data for these items are corrected.

Weights and composition

Major groups	Number of items	Weights	Approx. No. of price quotation per item
Tbilisi
Food, tobacco, alcoholic beverages	...	0.6103	50-70
Clothing and footwear	...	0.0824	20-40
Rent, water, heating, electricity	...	0.0528	20-40
Household equipment	...	0.0189	20-40
Health services	...	0.0319	20-40
Transport and communications	...	0.1435	20-40
Recreation, culture and education	...	0.0373	20-40
Hygiene and social services	...	0.0229	20-40
Total	296	1.0000	...
Other cities
Food, tobacco, alcoholic beverages	...	0.6671	50-70
Clothing and footwear	...	0.0702	20-40
Rent, water, heating, electricity	...	0.0791	20-40
Household equipment	...	0.0339	20-40
Health services	...	0.0358	20-40
Transport and communications	...	0.0594	20-40
Recreation, culture and education	...	0.0349	20-40
Hygiene and social services	...	0.0196	20-40
Total	296	1.0000	...

Household consumption expenditure

Household consumption expenditure refers to the value of consumption in a given period. It includes second hand purchases and consumption from own production. Credit purchases are not included as this type of purchase is not developed in the country. Income and other direct taxes are excluded.

Sample selection

Price data are collected in five largest cities selected according to their geographical position and number of inhabitants. Different types of outlets are chosen without specially designed procedure. The most popular and widely available items whose prices represent price movements for a given item group are selected for price collection.

Method of data collection

Prices are collected monthly, from the 10th to 20th day of the month, in approximately 2,000 outlets in 5 cities. In Tbilisi, food items are priced in 5-7 outlets, other goods in 4-6 and services in 2-4 outlets. In other cities, food items are priced in 3-5 outlets, other goods in 2-4 and services in 1-2 outlets. Prices are collected from different types of outlets like supermarkets, department stores, informal street market, etc. In case of such items like rail fares, electricity, water supply, etc., prices are obtained from the authorities concerned. Discounts are not taken into account.

Housing

Rent quotations are collected 2-4 times per month. The index refers only to rents for public but privatised apartments.

Specification of varieties

Detailed specifications are provided for each item included in the index. Specifications provide a description of the item, its brand, size, etc.

Substitution, quality changes

When one item disappears from the market for more than 3 months it is replaced with a variety of the same item.

Seasonal items

For seasonal fruit and vegetable which disappear from the market during one ore more month during the year, last available price is carried forward during the off-season.

Computation

The index is computed according to the modified Laspeyres formula. The average annual index is calculated as arithmetical average of 12 monthly indexes.

Other information

None.

Organisation and publication

State Department for Statistics

Bulletin: Social-Economic State of Georgia

Quarterly publication Consumer Price Index