Volume 1: Consumer Price Indices

Madagascar (Antananarivo)

Official title

Indice des prix de détail à la consommation familiale malgache (Retail Price Index - Malagasy).

Scope

The index is compiled monthly and relates to Malagasy households in Antananarivo.

Official base

August 1971-July 1972 = 100.

Source of weights

The weights and selected items were derived from a household expenditure survey conducted from March 1968 to February 1969 among Malagasy households of all sizes and categories in Antananarivo.

The items used in computing the index are all items with a market value to which a specific unit and quality can be assigned and whose price over time is easy to observe. These items have a relative share in total expenditure that is equal to or higher than 0.05 per cent for the Malagasy index.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food 60603.53636
Fuel and light 891.4140
Clothing and footwear 1585.5144
Household goods 34.156
Cleaning materials 520.3292
Personal and medical care 2038.6988
Domestic services 118.21
Miscellaneous 19138.4390
Total 1311000.05647

Household consumption expenditure

Own-consumption is taken into account in computing the weights. No account is taken of rent expenditure or owner-occupied housing. Expenditure on the following items is also excluded: durable goods, education, insurance other than for vehicles, contributions, gifts, income tax and other taxes, fines, transfers, personal goods and miscellaneous expenditure. Wages paid for domestic services (not taking account of benefits in kind) and the running expenses and insurance of private vehicles are included.

Method of data collection

Price observation is limited to a certain number of shops selected so as to correspond to the population covered by the index and to reflect the size of the reference population which makes its purchases there. The shops are selected empirically, taking account of the site, type or category of shop and of the distribution of the reference population. The number and the distribution of the shops vary according to the group of items.

The prices of food items and cleaning materials are collected in 20 shops in the town centre and in areas where there is quite a large Malagasy population.

The prices of certain food items such as poultry and fresh fruit and vegetables are obtained during the first, second and fourth weeks of each month by direct purchase by agents in two important weekly public markets. The prices of the other items are collected by means of questionnaires sent each month to some 40 retail shops and service establishments.

Data on domestic services are obtained once a year by means of a special survey of a sample of households. The list of these households is brought up to date every year by reference to the list of employers provided by the Caisse Nationale de Prévoyance Sociale (national social insurance fund).

Housing

Rent is not included as an index item, nor was it taken into account in determining the weights.

Specification of varieties

Items are specified and defined by the terms most familiar to tradespeople and buyers and which influence the price (type, quality, size, weight, country of origin, etc.). The method of acquiring the items is also one of the factors included in the specifications, and is provided on the basis of the behaviour of the reference households. For items that are not homogeneous, especially manufactured goods, the definitions are not strict but each shop is obliged to give the price for the same variety of item.

Substitution, quality change, etc.

If a shop closes down or changes its activity, a comparable substitute is sought, if possible in the same area.

If an item disappears from the market and an equivalent cannot be found, but a similar one has already been introduced in the index, the weight of the item that has disappeared is attributed to the similar item. If a similar item has not been introduced and a substitute cannot be found, its weight is distributed among the various items of the same group.

In most cases, the disappearance of an item leads to the appearance of a new one. Generally, therefore, there is a certain period when the prices of the two items can be collected and when the difference in quality and price can be evaluated so that the link does not conceal the real difference in price. The new item is not incorporated in the index until its sales volume has become fairly significant.

Seasonal items

Seasonal fluctuations in the prices of fresh fruit and vegetables are taken into account by shifting the monthly item weights within the constant group weights.

Computation

The index is computed according to the Laspeyres formula as a weighted arithmetic average with fixed base, using weights corresponding to March 1968-February 1969.

Organisation and publication

Ministère des Finances, Direction générale de la Banque de données de l'Etat: Bulletin mensuel de statistique (Antananarivo).

Idem: Situation économique.

Direction générale du gouvernement, Direction de l'Institut national de la statistique et de la recherche économique: L'établissement des nouveaux indices des prix de détail à la consommation familiale à Tananarive, base août 1971 à juillet 1972 = 100 (Antananarivo).