Volume 1: Consumer Price Indices

Malawi (Blantyre 1)

Official title

Retail Price Index for Low-Income Group Families.

Scope

The index is compiled monthly and covers households in Blantyre with monthly expenditure below 100 kwachas during 1979-80.

Official base

1980 = 100.

Source of weights

The weights and selected items were derived from an urban household expenditure survey conducted in 1979-80 covering 4,000 households in Blantyre, Lilongwe, Zomba and Mzuzu. The index relates to low-income group families with monthly expenditure below 100 kwachas during the period of the survey.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food 34500102
Beverages and tobacco 73921
Clothing and footwear 2415472
Housing 1410842
Household operation 78621
Transportation 8488
Miscellaneous 146542
Total 1081000308

Household consumption expenditure

Consumption expenditure for the purpose of the index refers to all money expenditure by households on goods and services intended for consumption, including repayment of loans.

Income in kind and imputed rent of owner-occupied dwellings are excluded.

Method of data collection

Prices are collected by agents from markets, selected retail outlets and service establishments in Blantyre. For items sold in markets, prices are collected three times a month and for all other items, prices are ascertained on the Tuesday or Friday nearest the 15th of each month. Price quotations are used for all items, except for vegetables, fruit and fish, where prices are obtained by direct buying.

The prices used to calculate the index are the regular prices paid by any member of the public. Sale, discount and reduced prices are not used.

Housing

Rent and owner-occupied housing costs are not included in the index, nor were they taken into account in determining the weights.

Specification of varieties

Detailed specifications are given for each item, describing the variety, quality, make, brand and unit.

Substitution, quality change, etc.

When a product is no longer available, a similar product to the original is substituted and a method of linking is used.

Seasonal items

Prices of seasonal items are estimated during their off season.

Computation

The index is computed according to the Laspeyres formula as a weighted arithmetic average with fixed base, using weights corresponding to 1979-80.

At least three price quotations are obtained for each item to calculate average prices.

Other information

The National Statistical Office also compiles and publishes series relating to medium- and high-income group households in Blantyre and Lilongwe and to low- and medium-income group households in Zomba and Mzuzu. In addition, Blantyre and Lilongwe are combined to arrive at a composite index for the two cities.

Organisation and publication

National Statistical Office: Monthly Statistical Bulletin (Zomba).