New CPI Series 2013 for June 2013

BY

Dr. Philomena NyarkoGovt. Statistician

Why rebasingThe CPI was rebased to make the indices reflect current households consumption patterns. Household consumption patterns changes over time in response to a change in products and/or incomes of households. It is necessary, therefore, to revise the weights regularly (re-base the CPI) so as to bring it in line with the current spending patterns of the population. As a rule, re-basing should take place within every five years or at any time when it has been observed that the spending pattern of the consumers’ had changed and these are mostly the appropriate time to revise the CPI basketThis is the fifth time the CPI has been rebased. The first one was in 1963.

What is new?The new CPI is different from the existing one:Increasing the markets coverage from 40 to 42.Increasing the items coverage from 242 to 267Reporting inflation rate for Upper East and Upper West separatelyComputing new weights for items based on the GLSS 5. The old weights were based on GLSS 4.Constructing outlet based market questionnaire for effective data collection.

Annual Inflation Rate (year-on-year)

• The annual (year-on-year) inflation rate for June 2013 was 11.4%.

• This means that the general price level went up by 11.4% over the one year period from June 2012 to June 2013.

– The annual inflation rate for May 2013 was 11.1%.

Monthly Change (month-on-month)

• The monthly change rate for June 2013 was 2.6%.

• This means the general price level went up by 2.6% for the one month period between May 2013 and June 2013.

– The monthly rate for May 2013 was 2.8%

Food and Non-food Inflation rate

• The rate of inflation has two main components;– Food inflation and – Non-food inflation

– The food inflation rate for June 2013 was 6.3% (compared with 5.8 per cent recorded in May 2013)

The non-food inflation rate for June 2013 was 15.7% the same was recorded for May 2013)

The rate of inflation for June 2013

‘  CONSUMER PRICE INDEX MONTHLY INFLATION YEAR-ON-YEAR INFLATION

             

  COMBINED FOOD NON-FOOD COMBINED FOOD NON-FOOD COMBINED FOOD NON-FOOD

                   

        % % % % % %

Weight 100.00 43.48 56.52            

         

Jan-13 104.6 101.7 106.8 0.6 1.6 -0.2 10.1 5.1 14.1

Feb-13 105.6 104.4 106.4 0.9 2.6 -0.3 10.5 4.7 15.2

Mar-13 106.6 104.7 108.0 1.0 0.3 1.4 10.6 3.5 16.5

Apr-13 106.9 105.3 108.2 0.3 0.5 0.2 10.9 3.8 16.8

May-13 109.9 110.2 109.7 2.8 4.7 1.3 11.1 5.8 15.7

Jun-13 112.7 112.4 113.0 2.6 2.0 3.0 11.4 6.3 15.7

Rate of inflation compared‘ New base Year Old base Year

Year/MonthMonthly (m/m) Yearly (y/y) Monthly (m/m) Yearly (y/y)

Jan-13 104.6 0.6 10.1 412.6 2.1 8.8 Feb-13 105.6 0.9 10.5 423.4 2.6 10.0 Mar-13 106.6 1.0 10.6 430.5 1.7 10.4 Apr-13 106.9 0.3 10.9 438.2 1.8 10.6

May-13 109.9 2.8 11.1 447.8 2.2 10.9

Jun-13 112.7 2.6 11.4 455.4 1.7 11.2

Consumer Price Index, January - June 2013Consumer Price Index, January - June 2013

Index 2012 =100Change rate (%)

Index 2012 =100Change rate (%)

COICOP Weights compared‘ Item Description; COICOP Group New Old

All goods and services 100.0 100.01. Food & Non Alcoholic beverage 43.6 44.92. Alcoholic Beverage & Tobacco 1.6 2.23. Clothing & Footwear 8.9 11.34. Housing, Water, Electricity & Gas 9.5 7.05. Furnishings, Household equipment, & Maintenance 4.6 7.86. Health 2.4 4.37. Transport 7.2 6.28. Communication 2.6 0.39. Recreation & Culture 2.7 3.010. Education 3.8 1.611. Restaurants & Hotels 6.0 8.312. Miscellaneous Goods & Services 7.0 3.0

CPI Weight

COICOP main group inflation rates

‘Weight Weight

Yearly Monthly Yearly MonthlyAll Goods and Services 100.0 11.4 2.6 100.0 11.2 1.7Food and Non Alcoholic Beverages 43.5 6.3 2.0 44.9 6.4 1.9

Alcoholic Beverage and Tobacco 1.7 15.8 2.9 2.2 11.6 0.6

Clothing and Footwear 8.9 17.0 1.0 11.3 16.0 0.4

Housing, water, Electricity, and gas 9.5 17.4 1.1 7.0 18.9 2.8

Furnishing, Household equipment, & and Maintenance 4.6 16.4 2.7 7.8 14.7 0.6

Health 2.4 12.4 2.1 4.3 11.0 0.4

Transport 7.2 13.1 0.4 6.2 13.0 0.5

Communication 2.6 0.9 0.3 0.3 0.4 0.0

Recreation and Culture 2.6 15.2 2.2 3.0 14.0 0.0

Education 3.8 16.9 1.3 1.6 18.1 0.0

Restaurants and Hotels 6.0 15.3 0.1 8.3 14.8 4.6

Miscelleneous Goods and Services 7.1 17.1 1.0 3.0 13.8 0.0

Inflation Rate Inflation Rate2012 =100 2002=100

COICOP GROUP CPI WEIGHT AND INDICES -JUNE 2013Item Description; COICOP Group

HIGHLIGHTS OF THE PRESENTATION

• In June 2013, the year-on year inflation rate was 11.4%, up from 11.1 per cent recorded in May 2013.

• The monthly change rate was 2.6% for June 2013 compared with 2.8% for May 2013.

• The year-on-year non-food inflation rate for June 2013 was 15.7%. The rate for May 2013 was 15.7%.

• The year-on-year food inflation rate for June 2013 was 6.3%, compared to 5.8% recorded for May 2013.

• The year-on-year non food inflation rate of 15.7% was more than twice the rate for the food inflation rate (6.3%)

END OF PRESENTATION