Volume 1: Consumer Price Indices

Malawi (Blantyre 2)

Official title

Retail Price Index for High-Income Group Families.

Scope

The index is compiled quarterly and covers households in Blantyre with monthly expenditure of 400 kwachas or more during 1979-80.

Official base

1980 = 100.

Source of weights

The weights and selected items were derived from a household expenditure survey conducted in 1979-80, covering 400 households in Blantyre with monthly expenditure of 400 kwachas or more during the survey period.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food 49203147
Beverages and tobacco 147642
Clothing and footwear 277181
Housing 2613078
Household operation 1210836
Transportation 1925319
Miscellaneous 2615978
Total 1731000481

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 most of the items, prices are obtained on the Tuesday or Friday nearest the 15th of each month. Prices of important food items are ascertained three times a month through direct buying in two market areas. Data for servants' wages are obtained from an annual inquiry. Data for other services are obtained from appropriate service establishments.

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.

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

Seasonal items

Prices for 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 low- and medium-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).