Consumer price index shows time fluctuations of prices for goods and services purchased by the consumers for non-production consumption within a specified period of time. It measures a ratio of the value of a fixed basket of main goods and services at the prices of the current period as related to its value at the prices of the base period.
Price indices are calculated monthly on the basis of statistical data collected while observing price changes in retail trade and service establishments and also in commodity, mixed and food markets both in stationary trade enterprises, and in mobile trade (stalls, kiosks, booths, etc.) and also in the field of services and as well as on data of actual structure of consumer expenditures of households for the previous year.
Consumer price index is one of the key indicators characterizing inflationary processes in the economy.
Scope of the data:
- Population coverage: The consumer price index is compiled for the population with various income levels residing in urban population centers.
- Geographical coverage: Prices are recorded in 266 cities. Consumer price surveys are performed in all of the constituent territories of the Russian Federation. Price information is collected in all of the capitals of the republics (comprising the Russian Federation), in the kray, oblast, and autonomous district centers, in federally designated cities, and on a sample basis, in rayon centers (cities and urban-type settlements, referred to hereinafter as “cities”) selected in light of their representative nature in reflecting the socioeconomic and geographical status of regions and the degree to which the consumer market is saturated with goods and services. Cities are selected for price surveys using the targeted sample method.
- Item coverage: Consumer price indices are compiled for three major groups: food, nonfood goods, and services purchased by the public, which in turn are broken down into product groups and individual representative goods and services. In 2005 a total of 445 goods and services were included in the set of goods and services used to compile the consumer price index.
Source data collection programs
- Sources of weights: Data on consumer spending by the population, derived from household budget surveys, are used as weights in the compilation of the CPI. Additional information is also used to determine the specific weight of individual items in the consumer basket: data on the structure of the retail trade turnover, the output of certain types of products, other sources, and judgments.
- Time period of current weights: Current weights for computation of the CPI are used for an adjusted calendar year (fourth quarter of the year preceding the base year, and the first through third quarters of the base year). The base reference period consists of the fourth quarter of 2002 and the first three quarters of 2004.
- Frequency of weight updates: Weights are updated annually. Weight revisions are introduced in January of each year. The weights reflect expenditures in the 12 months ended the previous September. For example, the weights used in 2004 reflect expenditures in the 12 months ended September 2003.