Volume 1: Consumer Price Indices

Mauritius

Official title

Consumer Price Index.

Scope

The index is computed monthly and covers all types of households, all population groups and all geographic areas.

Official base

July 1986-June 1987 = 100.

Source of weights

The weights and selected items were derived from a household expenditure survey conducted from July 1986 to June 1987 on a sample basis such that all types of households, all population groups and all geographic areas of Mauritius were represented in the selected sample of 4,320 households.

Items are selected on the basis of the survey. They must be commonly bought by Mauritian households, normally available for pricing in shops or markets and available for some years to come in order to ensure continuity. The weights of items which are not priced are simply redistributed over identical items of that commodity sub-group.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food and beverages 764191964
Alcoholic beverages and tobacco 672138
Clothing and footwear 3784275
Housing and household operation 53135525
(of which gross rent) (3)(24)(180)
Medical care and health expenses 1030136
Transport and communication 119394
Recreation, entertainment, education & cultural services 2060158
Miscellaneous goods and services 2550251
Total 24110003566

Household consumption expenditure

Goods and services obtained free or produced for own consumption are valued at the market prices prevailing at the time they were reported in the household expenditure survey. Items which were excluded when determining the weights are: goods and services provided free by the government, such as medical services, medicinal products, education and books; imputed rents of owner-occupied dwellings; contributions to social insurance and pension funds; income tax and other direct taxes; debt repayments; outlays on betting and gambling; life insurance premiums, cash gifts and remittances. Licence fees associated with private household activities and insurance associated with specific consumer goods are included.

Method of data collection

A point-of-purchase survey was carried out during the 1986-87 household expenditure survey.

The localities for price data collection were chosen not only to represent both urban and rural regions, but also in relation to their importance as shopping centres. For urban regions, all five municipal council areas (Port-Louis, Rose Hill, Quatre Bornes, Vacoas and Curepipe) were selected, while for the rural regions at least one major village was selected in the North, South, East, West and centre of the island.

The collection of price data is carried out by the staff of the Central Statistical Office.

Once the localities and outlets are selected, the statistician identifies the different items and varieties available in the outlets of each locality, such that most goods and services in the basket are priced in every locality.

Perishable goods such as fresh vegetables, fresh fruits, fresh meat and fish are priced each week in markets on a specific day.

Prices for all other goods and services are collected every month in all localities during the period from the 12th to the 18th.

Official tariffs are referred to for electricity, water, bus fares and telephone charges.

The free-market prices which are actually paid by consumers are used. Discounts and sale prices are taken into account but irregular sales such as liquidation sales are ignored.

No account is taken of black-market prices, hire-purchase or credit terms, second-hand purchases or trade-in of used goods and in part payment for new ones, or import prices.

Housing

The item rent covers the rent actually paid by tenants excluding electricity, water and sewerage charges.

The rent index is computed each quarter in March, June, September and December from a survey of 180 households in rented accommodation. Of the 4,320 households covered by the 1986-87 household expenditure survey, 785 were living in rented accommodation. The sample of 180 was selected from these 785 households, systematically according to region and amount of rent paid. The survey of rented dwellings is undertaken using a special questionnaire.

Owner-occupied housing is not taken into account in the index. Data on rates and expenditure on maintenance and repairs were collected in the survey and these have been included in the index.

Specification of varieties

A representative sample of varieties or indicators are selected for each item, and are priced as available on the market. Detailed specifications regarding quality, make, brand, unit, etc. are then drawn up for every item or variety in each outlet and locality.

Substitution, quality change, etc.

Quality changes are difficult to quantify. Minor changes in quality are not taken into account. When the change is substantial, the older product is assumed to have disappeared and is substituted by the changed-quality product which is linked.

When new products appear on the market, their prices are collected for future use either when revising the basket of goods and services or when a substitute is needed due to the permanent disappearance of a product from the market.

When a product is no longer available, it is replaced by the nearest similar product on the market. The base price (fictitious) of this substitute is calculated in such a way that the current price relative of the substitute is the same as that of the product being replaced.

Seasonal items

Account is taken of the seasonal fluctuations of fresh vegetables by varying the items in that sub-group each month while keeping the overall weights constant. The vegetable index compares the cost of the basket for the current month with that for the same month of the base year.

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.

Price averages are calculated only for fresh vegetables, fruit, fish and meat collected from different outlets. Average prices are simple arithmetic means of all price quotations obtained.

Prices relatives are calculated by dividing current prices by base prices. If different varieties are used for an item, the price relative is calculated for each variety and weighted averages of price relatives are computed to obtain item indices.

The prices collected are carefully scrutinised at various levels to eliminate faulty reporting. If price data are missing, the previous month's price is used.

Organisation and publication

Central Statistical Office: Annual Digest of Statistics (Rose Hill).

Ministry of Finance: Government Gazette of Mauritius (Rose Hill).