Volume 1: Consumer Price Indices

Tanzania (Tanganyika)

Official title

National Consumer Price Index.

Scope

The index is compiled quarterly and covers all types of households and population groups in 20 urban centres in mainland Tanzania.

Official base

1977 = 100.

Source of weights

The weights and selected items were derived from a household expenditure survey conducted during one year from September 1976 to November 1977 among a sample of 6,042 households. Items with significant weights are priced. The weights of items not priced are excluded.

:hp4.Weights and composition:ehp4.
Major groups Number of items Weights Approximate number of price quotations
Food 4464.2...
Drinks and tobacco 52.5...
Rent 14.9...
Fuel, light and water 67.6...
Clothing and footwear 219.9...
Furniture and utensils 181.4...
Household operations 93.4...
Personal and medical care 91.3...
Recreation 50.7...
Transport 124.1...
Total 130100.0...

Household consumption expenditure

Consumption expenditure for the purpose of the index includes almost all important goods and services purchased by the index population. It excludes taxes, fines, gambling, money transfers, gifts, savings and investment, life insurance premiums and bride prices.

Method of data collection

Prices are collected in March, June, September and December from markets, retail outlets and service establishments in 20 urban centres. No point-of-purchase survey was carried out, but either all outlets are covered if there are only a few, or at least 50 per cent of them if there are many. Prices for items from markets, including fruit, vegetables, cereals and pulses, are obtained through direct purchase. Some prices are obtained from shops by mail questionnaires. Prices for electricity, water and communications are the official tariffs. The prices used to calculate the index are the regular free-market prices paid by consumers. Sale and discount prices are not taken into account. Black market prices are used if the items are available to all consumers.

Housing

Rent quotations are obtained each quarter by mail inquiry, for at least 30 dwellings occupied by low-income group families, 30 by middle-income group families and 30 by high-income group families, in each town. Owner-occupied housing not covered in the index.

Specification of varieties

Item specifications are given in terms of variety, quality, make, brand, unit etc.

Substitution, quality change, etc.

If an item disappears from the market or the quality of an item changes, a similar item is substituted for pricing.

Seasonal items

Seasonal items are priced when they are available and in season.

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 relatives for the current and base periods are used to compute item indices. The national index is a weighted average of the indices relating to 20 towns, using weights proportional to the population of each town.

Organisation and publication

Ministry of Finance, Planning and Economic Affairs, Bureau of Statistics: Quarterly Statistical Bulletin (Dar-es-Salaam).

For further methodological detail, see: Ministry of Economic Affairs and Development Planning, Bureau of Statistics: National Consumer Price Index (October 1974).