Jordan
Official title
Cost of Living Index.
Scope
The index is computed monthly and covers all urban and rural
households in the Kingdom (East Bank).
Official base
1992 = 100.
Source of weights
The weights and selected items were derived from the Household
Expenditure and Income Survey conducted during 1992 among 8,000
randomly selected households from all population groups in all
urban and rural areas.
Weights and composition
| Major groups
| Number of items
| Weights
| Approximate number of price quotations
|
| Food
| 141 | 41.170 | 1870
|
| Clothing and footwear
| 65 | 7.454 | 1394
|
| Housing
| 55 | 28.092 | 1445
|
| Other goods and services
| 47 | 23.284 | 2244
|
| Total
| 208 | 100.000 | 6953
|
Household consumption expenditure
This includes all expenditure by households during a complete year
and income in kind consumed by households. It also includes
the estimated rental value of owner-occupied housing.
Durable goods credit purchasea were treated as expenditure.
Second-hand purchases and trade-in of used goods and in part
payment for new ones were not taken in consideration.
Contributions to social insurance and pension funds, licence
fees, insurance associated with specific consumer goods, health
care, income and other direct taxes, life insurance payments,
remittances, gifts and similar disbursements deal with in accordance
with the definitions in the national accounts.
:SAMP.
The index takes into account those items that have economic
and consumption value and whose weight exceedes 0.3%.
Localities were selected taking into account population density
providing that all governorate centres are to be included.
Outlets were selected according to the quantities of sales and
location. They should not be located near very high-income households.
4595 outlets,clasified by type, were selected. Ten outlets are selected
for each item.
Method of data collection
Prices are collected each month by agents in all capitals of governorates
and districts in Jordan. Prices for fresh fruit and vegetables are
obtained on Tuesdays, four times a month. Prices for other food
items are ascertained once a month, during the first week, clothing
the second week and other goods and services the third and
fourth weeks.
The prices are the regular prices on the market, whether they
are official prices or not. Discounts, sale prices, black-market
prices, hire-purchase and second-hand purchases are not
included.
Housing
Rent quotations are obtained every six months for all types of
dwellings. 1343 dwellengs from different localities are selected
in the sample. Owner-occupied housing is excluded from the index.
Specification of varieties
The specifications of items to be priced are obtained from
traders and are given in terms of the variety, quality, make, brand,
unit, country of origin, etc.
Substitution, quality change, etc.
If a product is not available on the market, a similar product
to the original is substituted.
Seasonal items
When an item is out of season, the missing price is imputed.
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 average price of each item in the current month is first
divided by the price in the base period to give the price
relative.
The weighted price average for a locality is multiplied by the weight
for the locality which is proportionate to its population size.
Organisation and publication
The index is compiled by the Department of Statistics (Amman).
Central Bank of Jordan: Monthly Statistical Bulletin
(Amman).