Volume 1: Consumer Price Indices

Zimbabwe

Official title

National Consumer Price Index of Zimbabwe.

Scope

The index is compiled monthly and relates to all types of households in the whole country.

Official base

1990 = 100.

Source of weights

The weights and selected items were derived from the results of a household expenditure survey conducted between July 1990 and June 1991 among a sample of about 14 000 households in Harare and 233 in Bulawayo. The weights were not adjusted to take into account price changes between the survey period and the base period.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food 2754.91466
Beverages and tobacco 55.4156
Clothing and footwear 256.6496
Rent, fuel and light 418.487
Household goods 234.6741
Transport 194.734
Miscellaneous 215.4295
Total 124100.03275

Household consumption expenditure

The consumption of goods and services received as income in kind is not taken into account. Household consumption expenditure excludes direct taxes and savings such as life insurance premiums and payments to pension funds, and expenditure on gambling and donations.

Method of data collection

Prices are collected each month from selected retail stores and service establishments in the high density suburbs of Harare, Bulawayo, Mutare and Gweru. Outlets in the city centres are also covered.

Price collection is mostly carried out through mail questionnaires. In Bulawayo, Mutare and Gweru, the questionnaires are distributed and collected by officers of the Department of Community Services. In these areas, price data for fruit and vegetables are collected each quarter by means of interviews in the markets. In Harare, some of the price data for those items such as fruit and vegetables sold in markets are collected by staff of the prices section of the Central Statistical Office.

The prices used in the index are those that any member of the public would have to pay on the pricing day. Price data refer to the 8th of each month. Sale, black-market and discount prices are not taken into account.

Housing

Rent quotations are collected through a six-monthly survey of dwellings. The rent index is based on rent, including water and sewerage charges paid for various types of municipal housing. Housing repair costs are excluded from the major group Rent but are included in the Miscellaneous group.

Specification of varieties

For some items, mainly groceries, the brand and size are specified on the price collection forms. For the remaining items broad descriptions are given in the questionnaires by the Central Statistical Office. Different brands can be used in different outlets to represent an item so long as prices are collected for the same brand each month. The best-selling medium-priced article from a line or range is to be chosen.

Substitution, quality change, etc.

If an item is temporarily out of stock, the last price recorded is maintained until it is again available, or a substitute item is introduced, using the method of linking.

Seasonal items

Only fruit and vegetables are treated as seasonal items. A variable monthly weighting structure is used to allow for seasonal variations. The total weight for fruit and vegetables is kept constant.

Computation

The index is computed according to the Laspeyres formula as a weighted arithmetic average with base December 1981. The group indices are then converted to the base 1980 = 100 using certain conversion factors.

In computing item indices, price relatives for the current and previous periods are used. For most of the items, relatives of average prices are calculated; averages of price relatives are computed for a few items such as car spare parts.

Separate indices are first calculated for each of the four towns and these are then weighted according to the population of each town to arrive at the national index. The weights applied to the individual towns are Harare 56, Bulawayo 32, Gweru 6, and Mutare 6.

Other information

The Central Statistical Office also publishes a consumer price index for higher-income urban families (base 1980 = 100). In addition, an all-items index exclusive of sales tax and excise duty is also produced for both lower- and higher-income urban families.

Organisation and publication

Central Statistical Office: Quarterly Digest of Statistics (Harare).

Idem: Monthly Supplement to the Digest of Statistics.