Volume 1: Consumer Price Indices

Pakistan

Official title

Combined Consumer Price Index.

Scope

The index is compiled monthly and covers industrial, commercial and government employees in four monthly income groups: up to 1,000 rupees, 1,001 to 2,500 rupees, 2,501 to 4,500 rupees, and over 4,500 rupees. The index covers 25 important urban centres.

Official base

July 1980-June 1981 = 100.

Source of weights

The weights are based on the results of the household expenditure survey conducted in 1982 in 46 urban centres including 25 major urban centres, among a sample of 26,864 households. Index items were selected to be representative of the tastes, habits and customs of the people, easily recognisable and describable and unlikely to vary in quality.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food and tobacco 17649.90...
Clothing and footwear 736.68...
Rent 117.76...
Fuel and light 155.62...
Furniture and household equipment 382.34...
Transport and communication 446.20...
Education and recreation 443.50...
Cleaning products and personal care 455.56...
Miscellaneous 282.44...
Total 464100.00(a) ...

Note: (a) There are about four quotations for each item from different shops in each shopping area.

Household consumption expenditure

Consumption expenditure for the purpose of the index comprises all the important goods and services purchased for consumption by the index population. It excludes non-consumption expenditure, house purchase, interest charges, jewellery and all forms of assets and liabilities.

Method of data collection

Field staff of the Federal Bureau of Statistics collect prices from market areas, selected retail stores and service establishments in 46 urban centres including 25 major cities. Prices are collected using four schedules. Prices of basic consumption goods and perishable food items such as meat, fish, eggs, vegetables, etc. are collected on the third Tuesday of each month. Prices of other items are collected each month.

The prices used in the index are prices at which retailers and service establishments sell their goods and services direct to consumers.

Housing

Current rent data are not available on a country-wise basis; changes in the price of input construction items are used as an indicator of rent trends.

Specification of varieties

Most of the specifications of items priced were defined by the Statistics Division of the Federal Bureau of Statistics. If it was not possible to establish specifications for certain items, the local best quality is used.

Substitution, quality change, etc.

The Statistics Division examines all proposals by the field staff for substitution when an item is not available at all or when it is not available according to the specification or unit. If the use of a substitute is accepted, it is introduced in the index by a method of linking.

Seasonal items

Seasonal items show a wide range of variation between in-season and off-season prices. To remove this variation, arrangements have been made in the programming for computating these indices to keep the prices of such items at zero in 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 1982. Weights for various cities provided by the household income and expenditure survey were used to compute city indices for three categories of employees and four income groups.

The national index is computed by using a combined set of weights that ignores the distinction between cities, occupational categories and income groups.

Organisation and publication

Federal Bureau of Statistics, Statistics Division: Monthly Statistical Bulletin (Karachi).

Idem: Pakistan Key Economic Indicators.

Idem: Consumer Price Index Numbers of Pakistan 1980-81 = 100.