Statistics Center – Abu Dhabi (SCAD) released yesterday its Monthly Report of the Consumer Price Index for the month of August 2010, using the price data of 2007 as the base year. The bulletin reports CPI data according to the types and levels households’ of welfare.
According to the report, the average rise in consumer prices for the first eight months of 2010 was 2.67%, compared to the same period of 2009. This is evident from the advance in the CPI for the period January-August 2010 to 118.29 points, up from 115.22 points over the same period of 2009.
As the report reveals, the percentage monthly year-over-year rise in the CPI for August 2010 was 3.59%, as the index advanced from 115.75 points in August 2009 to 119.91 points in August 2010.
Meanwhile the percentage month-to-month rise in the CPI for August 2010 compared to July 2010 was 0.81%, as the index increased from 118. 95 points in July 2010 to 119.91 points in August 2010.
Analyzed by it impact at the household welfare levels, the 2.67% surge in consumer prices during the first eight months of 2010 compared with the same period in 2009 has led to an increase of 2.02% in consumer prices for households of the bottom welfare quintile. Over the same period, consumer prices grew by 2.51% for households of top quintile and by 2.92% for the upper middle welfare quintile, the largest increase among the five welfare levels.
The report also illustrates that that overall 2.67% rise in the year-over-year in consumer prices for the first eight months of 2010 has pushed up consumer prices for national households by 2.13%, compared to 3.51% for non-national households and 1.81% for collective households.
As SCAD’s report elaborates, average consumer prices for the first eight months of 2010 increased by 2.67% compared to the same period of the year 2009, as seen from the rise in the CPI for the first eight months of 2010 to 118.29 points, up from 115.22 points for the same period of 2009. This rise in the prices reflects the net change in the consumer basket prices (i.e. the outcome of upward and downward movement) during the two periods compared.
As SCAD clarifies, an increase in the CPI does not necessarily imply higher prices for all the goods and services that make up the consumer basket, nor does it mean that all goods and services have increased by the same percentage (2.67%); for there are goods and services whose prices have risen at rates above the overall rate (2.67%) and others whose rate of increase was below the general average. There are also goods and services whose prices have fallen. However, the net change or the combined outcome of these changes (upward and downward movements) in the prices of the consumer basket during the first eight months of 2010 compared to the same period in 2009 produced an overall increase in prices by (2.67%).
The report displays the relative changes in the prices of the major expenditure groups and the percentage contribution of each group to the overall change during the first seven months of 2010 compared with the same period in 2009.
SCAD’s report reveals that the "housing, water, electricity, gas and other fuels" group remained the largest contributor to the overall increase in prices during the first eight months of 2010, having accounted for 70.4% of that increase. This contribution resulted from a surge of 4.9% in the prices of this group and due the group’s sizable weight, which constitutes 37.9% of the total weight of all expenditure groups. The main cause underlying the increase in the average price of this group was a rise of 5.5% in house rents, which make up 87.7% of the total weight of the group.
The second largest contributor to the rise in consumer prices during the first seven months of 2010 compared with the same period in 2009 was the "Food and non-alcoholic beverages group", which accounted for 30.2% of the rise in the index, due to increases in the prices of most of the subgroups falling under this group, namely “sugar, jam, honey, chocolate and confectionery", which surged 35.4%, while “meat” prices grew by 11.2%, “vegetables” by 9.1%, “fish and seafood” by 4.7%, “foods not elsewhere classified” by 3.8%, , "coffee, tea and cocoa" by 2.7% and “fruits” by 1.8%.
The next highest contributor to the overall year-over-year increase in the CPI over the first eight months of 2010 was the "food and non-alcoholic beverages group", which accounted for 31.2% of the rise in the index, due to increases in the prices of most of the subgroups falling under this group, namely “sugar, jam, honey, chocolate and confectionery", which surged 33.73%, while “meat” prices grew by 11.6%, “vegetables” by 9.5%, “fish and seafood” by 4.8%, “foods not elsewhere classified” by 4.4% and "coffee, tea and cocoa" and “fruits” by 2.7% each. On the hand the prices of the “bread and cereals” subgroup declined by 8.1%, “oils and fats” by 5.9%, “milk, cheese and eggs” by 1.3% and “mineral waters, soft drinks, fruit and vegetable juices” by 0.5%.
The “Education” group accounted for 21.0% of overall increase occurring during the first eight months of 2010 compared to the same period of 2009, while the “transport” group contributed 13.1% to the year-over year rise in consumer prices for the periods compared, as a result of an increase of 3.8% in its component subgroups, namely, the “transport services” subgroup which advanced 4.0% and the “operation of personal transport equipment” subgroup, whose prices grew by 1.5% due to a rise in the “spare parts and accessories of personal transport equipment” by 8.0%, in addition to an increase of 4.2% in the prices of the group “other services related to personal transport equipment”.
Among the main groups that slowed down consumer prices during the first eight months of 2010 compared to the same period of 2009 was the "clothing and footwear," group, which detracted 28.2% from the overall rise in consumer prices. The prices of this group retreated by 7.2% as a result of a drop in the prices of the “clothing” and “footwear” subgroups by 5.7% and 22.7%, respectively during the period specified. The “communications” group detracted 14.1% from the overall increase in consumer prices during the period under review, owing to a drop of 5.6% in the prices of this group, due a decline of in the price of the “telephone and telefax equipment” and the “telephone and telefax services” subgroups by 13.53% and 5.7%, respectively.
Drawing a year-over-year comparison of August price levels, SCAD’s monthly report finds that average consumer prices advanced 3.59% in August 2010 compared to August 2009, as the CPI accelerated to 119.91 points in August 2010, up from 115.75 points in August 2009, reflecting the net price movements during the two months under comparison.
-------------------------------------------------
According to the report, The largest rise in prices during August 2010 compared to August 2009 was in the “education” group which advanced 20.1%, followed by the “transport” group, which surged 8.4%, the “food and non-alcoholic beverages” group, which rose 8.1%. On the other hand, the “clothing and footwear” group retreated by 8.4% and the communication group by 0.2% due to a decline of 9.6% in the prices of “mail services” and a fall of 19.9% in the prices of “telephone and telefax equipment”.
SCAD’s reports reveals a rise of 0.81% in the CPI for August 2010 compared to July 2010, as the CPI advanced from 118.95 points in July 2010 to 119.91 points in August 2010.
The key expenditure groups that showed observable increases during the month of August 2010 compared to July 2010 include the “communication” group, which surged by 12.6%, and the "food and non-alcoholic beverages" group, whose prices grew 1.3%, due to rises in some of its subgroups, namely “vegetables” by 8.7% and “meat” by 3.0%.
Despite the overall 0.81% rise the consumer price index for August 2010 compared to July 2010, the prices of the “clothing and footwear” group” and those of the “miscellaneous goods and services” group retreated by 1.6% and 0.4%, respectively, while other groups generally remained unchanged when their price levels for August 2010 are compared with those of July 2010.
Elaborating on the impact of the CPI movement on different welfare levels, the report shows that the rise in consumer prices during the first eight months of 2010 by 2.67% above their levels over the same period in 2009 resulted in a surge of 2.02% in consumer prices for households of the bottom welfare quintile for the same period of comparison. The corresponding rise for other welfare levels was 2.51% for households of the top quintile and 2.92% for the upper middle quintile, which experienced the largest increase among the five welfare levels.
The corresponding rises produced by the overall 3.59% increase in consumer prices during the month of August 2010 compared to August 2009 were 3.59% for the bottom welfare level, 3.11% for the top welfare level and 3.88% for the upper middle welfare quintile.
The report also details the impact on different welfare levels produced by the 0.81% increase in consumer prices during the month of August 2010 compared to July 2010, which implied a rise of 1.72% in consumer prices for the bottom quintile, but affected the lower middle, the middle and upper middle welfare quintiles as a rises of 1.18%, 0.92% and 0.80% in consumer prices for the said welfare levels. The corresponding rise for the top quintiles, however, was 0.53%, i.e. the uppermost level felt the rise the least, while the lowest welfare quintile was the hit the hardest.
Analyzed by impact according to household type, the overall 3.59% rise in consumer prices during August 2010 as compared to August 2009 resulted a surge of 3.48% in August 2010 consumer prices for national households, compared to corresponding rises of 3.83% and 3.09% for non-national and collective households, respectively.
Finally, a break down by household type of the 0.81% rise in consumer prices for August 2010 compared with July 2010 reveals an increase of 0.73% in consumer prices for the national households segment, while the corresponding rises for non-national and collective households were 0.64% and 1.99%, respectively.
The consumer price Index (CPI) is one of the critically important inputs for the purposes of planning and research in various disciplines. Statistics centers and agencies in different countries consistently compile these indices, which depend on the prices of a basket of goods and services consumed by the household sector. The figures thus calculated constitute a time series that provides a measure of changes in the cost of living over time.
In preparing its CPI reports, Statistics Centre - Abu Dhabi follows the methodologies adopted internationally in this field.
SCAD’s Price Indices Section has recently developed the computing of the CPI so that it is compiled according to households’ types and levels of welfare. As for the welfare level approach, the population is divided into five segments (quintiles) representing five levels of welfare, based on average per capita annual expenditure. Each quintile reflects the consumption pattern represented by that quintile. In regard to the household type approach, the population is divided into three types of households as set out in the results of the Household Income and Expenditure Survey (2007-2008), namely, national, non-national and collective households.
To represent all regions of the Emirate, the selected sample of items included in the Consumer Price Index basket uses actual data from the 2007/2008 household income and expenditure survey. The sample of outlets were selected in such a way as to represent points of purchase for a large base of consumers all over the Emirate of Abu Dhabi, taking into account the geographical distribution of sources within the emirate.
No comments:
Post a Comment