Volume 1: Consumer Price Indices

Iran, Islamic Rep. of

Official title

Consumer Price Index.

Scope

The index is compiled monthly and covers 70% of the whole population of urban areas.

Official base

21 March 1990-20 March 1991 = 100. The CPI has been available in Iran since 1936.

Source of weights

The weights and selected items were derived from a household expenditure survey conducted between March 1990 and March 1991, covering 13,000 urban families. Three stage sampling procedure was used.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food, beverages and tobacco 9640.0655000
Other groups: ......45000
Clothing and footwear 428.07...
Housing, fuel and power 2526.20...
House furnishings and household operations 417.24...
Medical care 413.94...
Transport and communication 228.14...
Recreation, education and reading 161.60...
Miscellaneous goods and services 204.75...
Total 303100.00100000

Household consumption expenditure

The consumption expenditure used for deriving the weights consists of the money value of all goods and services purchased during the base year by households for their consumption or given to other households. It includes the total value at purchase time of durable goods credit purchases, the value of income in kind (not received from other households), contributions to social insurance funds, licence fees, health care, insurance, life insurance payments and expenditure on gifts. It excludes remittances, direct taxes, contributions to pension funds and the value of home-produced and consumed goods. :SAMP. Items were selected according to therelative importance and availability of them in the futute. Some randomm sampling methods (PPS) were also used. The selection of outlets were based on the data collectors' knowledge, rough estimates of outlets' sales volume, geographical distribution of the outlets and avilability of ready-made information. Total number of outlets is 34000 (for food 13000 and for non-food 21000)

Method of data collection

Prices for most items are collected by agents during the first 25 days of each month from retail outlets, supermarkets and service establishments in 82 cities. In each large city 20 quotations for every food item and 10 quotations for every non-food item are obtained. The number of quotaion for the other cities are half of the large cities. Discounts, sale prices and black-market prices are to be considered. For items with both official and free-market prices, a weighted average of prices is computed, using weights derived from the latest household expenditure survey. Second-hand purchases and hire-purchases are not included.

Housing

Rent quotations are obtained each quarter from a sample of approximately 8,500 dwellings. The rental equivalence of ownwer-occupied dwellings is imputed by assuming that it has the same rate of change as the rental housis (with some quality adjustment) index. For this hedonic method is used. Rent index is calculated quarterly.

Specification of varieties

For most items, detailed and tight specifications in terms of quality, make, brand, unit and size are provided centraly. For items which it is not possible to determine detailed and tight specification, data collec- tors may select the best selling variety of the item in the outlet.

Substitution, quality change, etc.

Attempts are made to obtain the prices of goods with the same quality each month. If this is not possible, the nearest quality is priced. If a quality change is significant, quality adjustment or a linking method is used.

Seasonal items

When a seasonal item is absent from the market, its price is imputed by assuming that it has the same rate of change as the weighted average of the prices of other goods of the group.

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.

The averages of matched prices are used for deriving price relatives in consecutive months. The necessary adjustments are made if prices are incorrect. Missing prices are substituted by prices from other similar outlets or cities. The index is computed on regional basis.

Other information

The main sub-groups are published. No other national series are computed.

Organisation and publication

Economic Statistics Department is responsible for collecting price data and computation of the index. Statistical Researc and Survey Department is responsible for the methodological aspect of the index. Economic Report and Balance Sheet (Teheran).