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CPI in Sudan

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Title: CPI in Sudan


1
CPI in Sudan
  • UST

2
What is the Consumer Price Index (CPI)?
  • the average change over time in the prices of
  • consumer items .
  • goods
  • services
  • that people buy for day to day living.
  • It combines economic theory with sampling and
    other statistical techniques and uses data
    collected monthly to produce a timely measure of
    average price change.

3
Cont.
  • CPI provides an estimate of the price change
    between any two periods.
  • The CPI follows the prices of a sample of items
    in 12 main categories of consumer spendingsuch
    as food, clothing, shelter, and medical service.

4
Why is the C P I Important?
5
CPI calculation
  • ? PnQo
  • ?PoQo

X100
Example
Items Weight Base current CPI
Dura 0.982 4.84 11.03 2.24
Dura Fetarita 1.173 3.20 8.07 2.96
Yellow maize (Dura Shami) 0.069 4.12 9.29 0.15
Millet (Dukhn) 3.314 5.59 12.08 7.16
wheat 0.864 5.77 12.34 1.85
local barley 0.012 1.07 1.53 0.02
Imported barley 0.015 1.29 1.75 0.02
Egyptian rice ( Imported ) 0.608 2.11 4.80 1.39
6
Inflation rates
Month CPI 2008 CPI 2009 Inflation
January 106.0 118.0 11.2
February 106.6 118.4 11.1
March 106.6 118.2 10.9
April 109.6 119.0 8.5
May 110.7 120.5 8.9
June 115.8 127.2 9.9
July 119.4 131.2 9.8
August 122.5 135.3 10.4
September 121.0 136.6 12.9
October 118.6 133.9 12.9
November 117.8 134.9 14.5
December 116.9 132.7 13.4
7
Why Update the C P I?
  • Updating the CPI basket items, and their weights
    represents the current consumption patterns made
    by Sudanese households.
  • The items weight is the share of total household
    expenditure on the item to total households
    expenditure on all items.

8
Cont.
  • Used as deflator for GDP in Services Sectors for
    example Education , Health ect.
  • change the base year according to the GDP year
    using the formula
  • GDP Current year
  • Changed CPI

9
CPI basket
  • The last update of the Sudanese CPI basket items
    was in 2007 based on the HBS that conducted in
    2007. The previous basket of the CPI was based on
    1978.

10
Weights
  • reflects contribution to total expenditures of
    households.
  • determines the impact that its price change will
    have on the overall index.

11
CPI Calculation
  • Laspeyres formula is used for the calculation.
  • CPI basket consists of 663 items and the consumer
    basket consists of 944 items. cut of 0.005
  • temporarily missing and seasonal items are
    treated by distributing their weights at the
    other items in the same expenditure group.
  • Prices for fruits, vegetables, fresh meat, and
    fish food are collected on a weekly basis .other
    items are collected once a month.
  • The base year is 2007 for all the 15 northern
    states.
  • CPI is compiled for each state and for Sudan at
    the levels state/ urban, state/ rural, and
    state.

12
CPI Structure
  • Step1 Data/ Prices entry process - geographic
    areas and geographic weights.
  • ? PnQo
  • ?PoQo

100
13
Cont.
  • Step2 Calculation of relative prices and new
    weights, by dividing the current price by base
    year price. In addition, the new weight is
    calculated by multiplying the relative price by
    the base year weight .
  • Step3 To compute the minor group level, new
    weights for sub-minor groups within the minor
    group are aggregated and divided by the base year
    weights . The same procedures are done to
    calculate the Index at the major group level and
    finally for the general Index.

14
CLASSIFICATION SYSTEM
Sudan
COICOP
15
Used as deflator for GDP in Services Sectors for
example Education , Health ect. change the
base year according to the GDP year using the
formula GDP Current year Changed CPI
X 100
16
COICOP Code - Expenditure group
Consumption Group Sudan/ Urb Sudan/ Rur Sudan
Total 100.0 100.0 100.0
01 - Food and non-alcoholic beverages 43.4 62.0 52.9
01.1 - Food 41.3 59.0 50.3
01.1.1 - Bread and cereals (ND) 8.6 13.3 11.0
01.1.2 - Meat (ND) 9.8 13.8 11.8
01.1.3 - Fish and seafood (ND) 0.8 0.4 0.6
01.1.4 - Milk, cheese and eggs (ND) 4.8 4.8 4.8
01.1.5 - Oils and fats (ND) 2.3 3.6 3.0
01.1.6 - Fruit (ND) 3.3 4.3 3.8
01.1.7 - Vegetables (ND) 6.8 11.9 9.4
01.1.8 - Sugar, jam, honey, chocolate and confectionery (ND) 3.6 4.8 4.2
01.1.9 - Food products n.e.c. (ND) 1.4 2.0 1.7
01.2 - Non-alcoholic beverages 2.1 3.0 2.5
01.2.2 - Mineral waters, soft drinks, fruit and vegetable juices (ND) 0.9 1.0 0.9
17
CPI weights for the main groups and minor groups
for food
Consumption Group Sudan/ Urb Sudan/ Rur Sudan
03 - Clothing and footwear 4.2 4.9 4.5
04 - Housing, water, electricity, gas and other fuels 18.3 10.2 14.2
05 - Furnishings, household equipment and routine household maintenance 8.3 5.5 6.9
06 - Health 1.1 0.9 1.0
07 - Transport 9.8 6.9 8.3
08 - Communication 2.3 1.1 1.7
09 - Recreation and culture 2.7 1.8 2.2
10 - Education 3.5 2.0 2.7
12 - Miscellaneous goods and services 3.1 2.2 2.6
18
CPI weights for the main groups Khartoum old
Weight
Code Description M
Code Description Weight
10000 Total Food,Drink Tobacco 0.6378
20000 Total Clothing,Shoes 0.0281
30000 Total Rent And Fuels 0.1057
40000 Total Household Opern 0.0368
50000 Total Health Care 0.0090
60000 Total Transport,Etc 0.0601
72000 Total Entertainment 0.0172
74000 Total Education 0.0146
80000 Total Miscellaneous 0.0907
000 Total Weight 1.0000
19
Consumer Price Indices 2008 -2009
20
Monthly Inflation Rates for Northern States
2008-2009
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