Description of methods and sources for Albania - INSTAT

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IPA 2009 Multi-beneficiary StatisticalCooperation Programme Type of outlets and LocationsBased on the type of outlets, we collect price in specialized shops, mini markets,open markets and different kinds of services. Based on the location, we collect pricesin the centre of the central city and in suburban areas.Product coverageThe basket of items has 272 different goods and services. The selection of the goodsand services is based on the results of the Household Budget Survey. The lastHousehold Budget Survey is carried out during October 2006-September 2007. Wego throw the following steps.1. First, a frame is constructed including 375 detailed goods and services ofthe COICOP classifications in the 6-digit level.2. Next, we calculate the proportion of consumers’ expenditure of each itemto the total expenditure of the whole list of items. All items with a shareequaling or more than 0.05 % are selected.3. Items are aggregated to the 5-digit level of COICOP. In the aggregationprocess, weights for item not selected are attached to the relevant items.In some cases these weights have to be distributed on several items.4. We make sure to have in the basket of items at least one article or servicein the 5-digit level of COICOP classification.5. We also make sure to have in the basket of items products from old list,even if some of them do not fit the criteria of 0.05 %. Also, we excludefrom the list some goods and services for which it is difficult to collectthe price even if they fit the criteria11.2.5 Price collectionsPrices are collected only in the urban area. The regional statistical offices of 11 citiesused to collect the prices are Berat, Dibër, Durres, Elbasan, Fier, Gjirokastër, Korçë,Lezhë, Shkodër, Tiranë and Vlorë. The time of collection of the price is during 10-25 th day of each month. In each city, prices for each item are collected in 8 -10outlets. We collect about 18000 individual prices every month. The sample size ofoutlets is about 500. We used a standard form for collection of the price. The pricecollectors enter the prices in the Excel format form and calculate the relative pricefor each item. The data is transmitted to the Institute of Statistics (INSTAT) on the30 th of each month.140/236
IPA 2009 Multi-beneficiary StatisticalCooperation Programme11.2.6 Calculation of CPICalculation of the weightsWe have three types of weights. The weights are product weights for each region,geographic weights and national product weights. The regional product weights areused for calculation of the index at regional level. The geographic weights andnational product weights are used to calculate the index at national level. Weightsare the proportions of the item expenditure to the sum of the expenditure.CEiWi where W is the weight of the product and CE is consumers’CEiexpenditure.Calculation of indexThe CPI is calculated at national level and also at regional level. The first step is tocalculate the relative price for each item in each region. We use the geometric meansof price ratios between current with previous month for calculation of relative prices.PRtt1,ijnk1 PtijkPt1ijk 1/ nRelative Price is used in monthly chaining which gives the relative price from thebase period:t1tPR0,ij PR0,ijPRt1,ijThe regional CPI is calculated (but is not published).RCPI PR,ti, 0rij*it0 ijTo calculate the national CPI the relative prices are aggregated geographically toform product indices on items for the entire Albania:ttI0,i rij PR0,ijwhere rij 1 : i(for all cases)jjAggregation over items then gives the national CPI of Albania:ttCPI0 wi. I0,iwhere wi. 1Definitionsii141/236
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