Volume 1: Consumer Price Indices

Rwanda (Kigali)

Official title

Indice des prix à la consommation (Consumer Price Index).

Scope

The index is computed monthly and covers households of wage earners in the public, semi-public and private sectors of the urban area of Kigali.

Official base

March-June 1982 = 100.

Source of weights

The weights and selected items were derived from a household expenditure survey conducted during March-June 1982 among households of wage earners in the public, semi-public and private sectors of the urban area of Kigali with a monthly income of 5,000 to 100,000 francs at the time of the survey.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
All items:
Food 10534.90...
Beverages and tobacco 229.30...
Clothing and footwear 7111.35...
Household equipment 368.40...
Medical care 371.70...
Personal and other care 553.55...
Housing 5913.20...
Transport 2010.30...
Recreation and leisure 121.20...
Miscellaneous 246.10...
Total 441100.00...

Household consumption expenditure

Consumption expenditure comprises: monetary consumer expenditure; presents given in kind; items bartered; and own-consumption (i.e. a household's production for its own consumption). The latter was taken into account indirectly because it could not be set apart in the the survey. The aim of the survey was not to determine final household expenditure but the weights for the various items of the index.

Income in kind was taken into account when computing the overall income of households surveyed and concerns free housing, free electricity and water, and free transport.

Owner-occupied dwellings, the trading-in of used goods and in payment for new goods were not taken into account at the time of the survey. Income tax and other direct taxes, and contributions to social insurance and pension funds were not taken into account. Although these items account for household expenditure, they are not consumer goods and it is difficult, if not impossible, to establish their prices. Life insurance payments were excluded from the index to avoid overlapping in the accounts, since insurance services are difficult to ascertain. For medical care, hospital expenditure is not included in the monthly consumer price index because of the lack of rapid information on the corresponding prices; only the costs of medical consultations in both the state and private health sectors (as well as the most commonly consumed medicine) were taken into account at the time of the survey. Remittances, gifts and similar disbursements were not included because no price is given to these. The purchase of durable goods, credit purchases and second-hand purchases were taken into account in the household expenditure survey.

Method of data collection

Prices are collected twice a month from all markets and the most representative retail outlets in the urban area of Kigali. The prices used to compute the index are the prices actually paid by the consumers.

Information on electricity, gas and water rates, medical consultation fees, school fees, transport and communication costs which are established by the Government are collected when the prices change.

Housing

Data on rents are obtained every month for four rented dwellings, of which two have two bedrooms and no electricity and two have two bedrooms and electricity. Owner-occupied dwellings are not taken into account.

Specification of varieties

These are specifications for imported and local items, as well as items imported but manufactured locally (raw materials imported).

Substitution, quality change, etc.

If there is a change in the quality of an item, and if it may be considered as new one and causes the old item to be discontinued, it is included. A fictitious base price is calculated by applying the percentage of increase of the former item.

Seasonal items

When a seasonal item is not available on the market, its price is maintained for a maximum of three months.

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.

Organisation and publication

Banque Nationale du Rwanda: Bulletin de la Banque Nationale du Rwanda (Kigali).

Idem: Rapport annuel sur l'évolution économique et monétaire du Rwanda.