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Summary Methodology Price index: Consumer prices
| The Data: Coverage, Periodicity, and Timeliness |
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| Coverage characteristics | Price indexes are calculated based on Laspeyres index (2005=100), by 54 cities and regions. During the calculation of regional indices, consumer expenditure of population by each region is used as a specific weight.
Price data of 565 goods and services are used currently (food - 148, non-food - 304 and services - 113). Approximately 130000 price quotations are collected each month in 54 CPI regions. Price observations are conducted at about 9000 outlets, including 3000 in the capital. The recorded prices include VAT, excise-duty and other direct taxes.
The system of weights used in the index is derived from household survey data and is updated annually in April. Therefore, the indexes for January are recalculated using the new weights.
Two third of prices are recorded for each item in city centers and three fourth prices are recorded in the outskirts of the cities. The largest number of quotations (8-10) is collected for food items, and the smallest number is collected for the sub-group rent, water, heating, and electricity. In the case of other groups, on average 6-7 price quotations are obtained.
| | Periodicity | Monthly report |
| Timeliness | 3rd day of the next month |
| Access by the Public |
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| Advance dissemination of release calendar
| Data release calendar can be accessed from the web page of the State Statistical Committee (SSC) http://www.azstat.org/publications/C_R.shtml |
| Possibility of simultaneous use of data by all users
| Data are released through press releases, through the web page of the State Statistical Committee (http://www.azstat.org/indexen.php ), press releases and regular publications:
1) Monthly bulletin of "Prices and price indexes"
2) Statistical yearbook of "Prices in Azerbaijan" (http://www.azstat.org/statinfo/price_tarif/en/index.shtml)
3) Monthly report of the SSC "Social-economic development" |
| Integrity |
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| Dissemination of data on terms and conditions for production of official statistics, including confidentiality of respondents' private data
| The State Statistical Committee (SSC) calculates and disseminates consumer price indexes in accordance with the Law of the Republic of Azerbaijan on Official Statistics (Resolution No. 790 of the Azerbaijan parliament Milli Majlis of February 18, 1994).
Article 1 of the Law determines the legal basis for independent selection of sources and methods required to produce and disseminate CPIs.
Article 2 of the Law determines the SSC as the main organization responsible for producing official statistics.
Article 5 holds the SSC responsible for:
(i) disseminating statistics of broad interest to the public;
(ii) guaranteeing the reliability and objectivity of statistics; and
(iii) assuring the accuracy, quality, and timeliness of the data produced.
Article 6 of the Law on Statistics guarantees the possibility of obtaining SSC's administrative records and other data produced by legal entities, including the data produced by government ministries and the CBA (Central Bank); it also empowers the SSC to obtain data from registered economic units and households, including commercially confidential data.
Article 11 guarantees the confidentiality of the data presented to the SSC. Survey forms clearly state that calculated data are kept confidential according to the Law.
The Law of the Republic of Azerbaijan on Official Statistics is available in English on the following SSC webpage: http://www.azstat.org/laws/indexen.php. |
| Rules for obtaining data by government bodies before publication
| Government bodies don't have a chance to obtain data before publication. In general, access to data prior to their release to the public is provided only to specific officials outside the SSC only for official work. In particular, government officials may access the data at various stages of compilation for purposes of official work. |
| Opinion of other ministries relative to publication of statistics
| Statistics are published without consideration of other ministries' opinion |
| Study of ministries' opinion relative to publication of statistics
| News releases are generally accompanied by brief commentary provided by the SSC. Dissemination of the data between regular SSC publications is generally accompanied by commentary provided by the SSC.
Politicians, ministers, and the mass media make comments and they rely on State Statistical Committee's data in their speeches and announcements. |
| Provision of information about revision and advance notice of major changes in methodology
| Data are usually final during dissemination of indicators. When preliminary data are published, they are identified as such.
The CPI series are not revised. A notice is provided in the event that data are revised.
The public is informed of major changes in methodology at the time the changes are introduced. |
| Quality |
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| Dissemination of documentation on methodology and sources used in preparing statistics
| Summary information on the methodology is published in Socio-Economic Development yearbook, as well as in the Statistical Bulletin on a monthly basis. Methodological notes are also published in the Annual Statistical Yearbook.
Information on methodology and sources used to compile the CPI are available on request from the contact person.
| | Dissemination of data on components, results of checking of indicators, validation of substantiation of indicators and on statistical frameworks that support statistical cross-check
| The detailed data on each item and by groups are published in the statistical publications of the SSC.
With the exception of owner-occupied dwellings, the CPI is consistent with the national accounts.
Monthly, quarterly, annual time series are available and consistent with each other.
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Footnotes
Last posted: Date IMF staff last posted an update to these metadata on the DSBB.
Last certified: Date subscriber last officially certified the accuracy of these metadata.
Last updated: Date subscriber last submitted an update of these metadata to the IMF.
I. Analytical Framework, Concepts, Definitions, and Classifications
- Definition: Relative measure of overall change in the cost of a fixed set of goods and services, or a consumer "basket" based on average consumption.
- Classification: Consumption of products is classified according to the Classification of Individual Consumption by Purposes (COICOP).
o Institutional units and transactions are classified according to a seven digit national classification system based on the COICOP. This system is consistent with the internationally recommended four digit system used for the System of National Accounts 1993 (1993 SNA).
- Relationship with international guidelines: The concepts and definitions used are generally in line with internationally accepted standards as defined by the International Labor Organization, IMF, United Nations and others.
II. Scope of the data
- Population coverage: The Household Budget Survey (HBS) covers all residents of private households in Azerbaijan, with the exception of those headed by non-Azerbaijani citizens. Households engaged in business are included, with separate data for business activities and private consumption. Excluded are non-private households such as jails, military barracks and boarding schools. The HBS is estimated to cover in excess of 95 per cent of all households.
- Geographical coverage: Price observation is conducted in all towns and regions of the country, so the index represents price changes for the whole of Azerbaijan. The survey covers both urban and rural areas.
- Official goods coverage: Price observation is conducted in a whole country based on single "basket". More consumed goods and services are prefered by population during selection of official goods and services.
The SSC has developed a new list of market basket items for the new index based on the new seven-digit extended COICOP classification system. This new list of goods and services for the new CPI market basket includes approximately 565 goods and services. It should be noted that the list of market basket items for the CPI had not been updated since the index was introduced in January 2010.
III. Accounting Conventions
- Timing of price observation: Prices are collected decadely for all food items and monthly for nonfood items and services.
- Types of prices: The HBS, which is the basis for the CPI weights, and the CPI price collections themselves measure consumption at market purchasers' prices. Valuation is conducted at purchasers' prices, including production for own consumption.
- Grossing/netting procedures: The weights for the purchase of cars, furniture, appliances-all those where sales might occur-are measured by net sales.
IV. Nature of the Basic Data Sources
- Source of weights: carried out based on the survey on household consumption expenditure.
- Timing of current weights: The weights for the indexes are updated each April.
- Frequency of weight updates:Annually. The weights were updated in 2010.
- Item selection: An item is selected on the basis of widespread demand and its regular sale at a reference enterprise
- Outlet selection: 9000 outlets are covered by the sales volumes observed in the SSC Trade Division Surveys. Reference enterprises in the trade and service sphere are selected using data from tax inspectorates, property management committees, and other government agencies. Enterprises selected for the survey generally are engaged in regular trade in consumer goods.
- Sample size: Prices are collected for 565 different products. The sample is based on export estimates depending on the region of the country.
- Price collection methods: Price data are collected by registrars using paper collection forms. It is estimated that a total of approximately 130 000 price quotations are collected each month in 54 CPI regions. Price information is collected from locations in which the relevant good is regularly sold, including large shops, kiosks, department stores and informal markets (street traders). The recorded prices include VAT, excise duty and other direct taxes. Two third of prices are recorded for each item in city centers and three fourth of prices are recorded on the city outskirts.
Price observations are made at about 9000 outlets, including 3000 in the capital. The largest number of quotations (8-10) is collected for food items, and the smallest number is collected for the sub-groups' rent, water, heating, electricity.
V. Compilation Practices
- Computation of lowest level indices: Elementary level indexes are calculated using a ratio of weighted arithmetic means of observed commodity prices.
- Aggregation: A modified Laspeyres formula is used to calculate the indexes.
- Alignment of expenditure and reference period: Weights are updated annually and no adjustments are made.
- Linking reweighted indexes to historical indexes: The annual replacement of weights should not affect the calculation of indices and their continuity. To this end, indices are linked with one another (December and January).
- Reference period: 2005=100.
VI. Other Aspects
- Recording of missing prices: Temporarily missing prices are imputed using the group mean approach-estimating the missing price using the average price change of the other similar items in the subgroup-and when a product reappears, the calculation process returns to using its observed price. All necessary replacement items are included annually. A broad range of commodity classifications ensure proper measurement of price changes.
- Selection of replacement items: If a current variety is permanently unavailable, a new replacement variety is selected. The new transaction price cannot be compared directly to the old transaction price, and therefore the price for the new item during the period in which the old item was observed must be obtained.
The price for a new item is recorded two months prior to the introduction of the item.
- Adjustments for quality differences: Quality differences are taken into account during the calculation of price indexes.
- Introducing new products: New products are introduced when the consumer basket is revised.
Products that become permanently unavailable are replaced; new basket has been introduced in 2005.
- Seasonal items: Seasonality is not typical for Azerbaijan in general, since almost all items are available year-round, but for those items that are not available for a certain period of time, an estimated price is used depending on the change in prices for the group that includes the given item.
- Owner-occupied housing: The rental values of owner-occupied dwellings are included since January 2005.
- Verification of prices: Prices for the previous month are entered in the monthly price collection form, which makes it possible to monitor price changes. The recording of prices is also checked on site on a quarterly basis.
- Verification of data processing: Verification is performed monthly. Responses cases which reduced the potential of the sample for the 2001 HBS from 8,800 to 7,800 are not used during the checking up of the information received from regions and towns.
- Seasonally adjusted indices: seasonal factor is taken into account during calculation.
Footnotes
Last posted: Date IMF staff last posted an update to these metadata on the DSBB.
Last certified: Date subscriber last officially certified the accuracy of these metadata.
Last updated: Date subscriber last submitted an update of these metadata to the IMF.
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