Price Indices
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IRAN STATISTICAL YEARBOOK 1393 22.PRICE INDICES Introduction elow you will find a short history of price index for goods. The year 1353 witnessed B examination of prices and calculation of some changes in national economic conditions, the related indices for urban and rural areas which caused it to be selected as the new base by both the Central Bank of the Islamic Republic year, and the indices calculation underwent the of Iran and the SCI. third revision. A. Consumer price index of urban households Considering the changes happened in the The National Bank of Iran first calculated the household consumption pattern resulted from cost of living index1 in urban areas and socio-economic developments after the 1357 wholesale price index for goods in the year 1315. Islamic Revolution, the year 1361 was adopted In the year 1338, the calculation of the cost of as the base and the indices calculation was living index and wholesale price index for goods revised again. was revised due to change of the base year. By In the year 1369 after the end of the Iran-Iraq establishment of the Central Bank of Iran in the War, which caused changes in economic year 1339, the responsibility for calculating such conditions, revision in the base year was indices was shifted to this Bank. With respect to considered necessary and the Central Bank of remarkable changes in households’ consumption Iran adopted the year 1369 as the new base for patterns and expenditure composition, the the calculation. Central Bank of Iran took the year 1348 as the In the year 1378, the Central Bank of Iran base and made the second revision in the changed the base year from the year 1369 to the calculation of cost of living index and wholesale year 1376 for calculation of price index of 837 22..PRICE INDICES IRAN STATISTICAL YEARBOOK 1393 consumption goods and services in urban areas. 1390 has been adopted as the base for Moreover, since the year 1385, this index was calculation. calculated and disseminated on the basis of the C. Producer price index base year 1383. It should be mentioned that the Central Bank of the Islamic Republic of Iran Statistical Centre of Iran started to calculate this started calculation of the producer price index in index from the year 1381 and it was decided that the year 1369. The most important uses of the from the year 1390, the information on this index index are early presentation of inflation trend be calculated according to the base year. It is and its application in national accounts for noteworthy that the Statistical Centre of Iran adjusting current prices into constant prices. calculated the information on this index based on The related publications appear monthly and the base year 1390 and published them in the annually. Statistical Yearbook of Iran. D. Price index for goods exported B. Consumer price index for rural households Calculation of “the price index for exported The SCI conducted the retail price survey of commoditie” started in the year 1376 in order to certain consumer goods and services in rural show changes in prices of exported goods. areas for the first time in the year1353.The Figures relating to price index for exported and results of the survey used to be published in the imported goods in the previous years were based form of average prices of consumer goods and on information obtained from the wholesalers services in rural areas as quarterly and annual involved in exports and imports. But, from the reports until mid-1357. The results of the survey year 1382 on, statistics on exported goods, for the second half of the year 1358 and the first included in this chapter, are the very information half of the year 1359 were released as average obtained from the Customs, which covers all prices and consumer price indices for rural exported items. households. Consumer price indices for goods It should be mentioned that since the year 1387 and services for rural households were calculated the information of wholesale price index for and released from the year 1361 to the year 1375 goods is not produced in Iran; therefore, the with the year 1361 as the base. Moreover, the related tables (20-9 and 20-10 in 1yearbooks) year 1374 was adopted as the base year in the have been deleted from the yearbook after three year 1376, and the statistics for the years 1375 to years. 1383 were prepared and disseminated by Ostans and total country. From the year 1383 to the year Definitions and concepts 1391, the base year was the year 1381. At Consumer price index (CPI): is a measure of present, according to the latest revisions, the year changes over the base year in prices of a certain 838 IRAN STATISTICAL YEARBOOK 1393 22.PRICE INDICES fixed number of goods and services consumed selling value of a single good or service to the by households. production or selling value of the set of goods Classification of groups for goods and services: and services. goods and services subject to indices are Urban areas: see Chapter 3, Definitions and classified according to their intrinsic nature and concepts. international classifications as well as national Rural areas: see Chapter 3, Definitions and requirements. However, the overall bases of concepts. classifications are those recommended by the Producer price index (PPI): shows the trend of United Nations (i.e, the COICOP2 for goods and changes in prices paid to producers in different services, the SITC3 for wholesale trade, and economic sectors such as agriculture, fishing, ISIC4 Rev. 3 for producer) and modified with manufacturing, mining and services. Producer respect to the economy considerations of Iran. price refers to the price which the purchaser pays In these classifications, goods and services are to the producer for purchasing each commodity; divided into a number of large groups, each of it also represents the selling price of goods or which consists of several sub-groups. Moreover, services produced and supplied to wholesalers, groups of goods and services are also classified domestic retail sellers and other industries and or according to special groups in terms of exported to foreign countries. requirements. Price index for exported commodities: measures Base year: is a certain fixed year against which changes in goods prices exported. Exported percentage of changes of indices are compared. commodities include all commodities which are The index for the base year is equal to 100. completely produced inside the country or Weight: contribution of any single good or exported as semi-finished goods or raw material. service to the set of goods and services subject to Selected information indices is called "weight". In consumer price Consumer price indices for goods and services indexes for goods and services, contribution of for urban households with an increase of 14.8 any single good or service equals to a proportion percent in the year 1393, compared with the of expenditure spent by a household to the total previous year, reached 195.0 (base year= 1390). household expenditure. In wholesale price index, Compared with the changes in the index of the contribution of any single good is equal to last year, this index experienced an decrease of selling value of wholesale of goods to the total 17.3%. Consumer price indices for two special value of wholesale of goods. In producer price groups, "goods" and "services" increased by 13% index, contribution of any single good or service and 17.2% , respectively, compared with the year is equal to proportion of the production value or 1392. In the group for "food and beverages", " 839 22..PRICE INDICES IRAN STATISTICAL YEARBOOK 1393 the price indices for " spices and seasonings " and the lowest increase belongs to the group with an increase of 15.7% had the highest "communications" with a 8.2 percent increase. change while the price indices for meat with a National producer price index for the year 1393, 5.5% increase had the lowest change. In the compared with the year 1392 increased by 14.8 group of non-foods and services, this index for percent and reached 204.5 (base year= 1390). "water, electricity, gas, and other fuels" group Compared with the changes of the last year, this with a 24.5 % increase had the highest change index had a fall of 19.7 in the year 1393. and in the "communications" group with a 5% Producer price index in "health and social work" increase had the lowest change. with an increase of 35.4% compared to the In the year 1393, the highest and lowest general previous year, had the highest increase and also index was for the Ostans of Hormozgan and in "manufacturing" with an increase of 9.9% Qazvin namely 215.3 and 180.1, respectively. compared with the previous year, had the lowest Consumer price indices for goods and services change. for rural households in the year 1393 increased Price index for exported goods in the year by 13.7 percent, compared to previous year, and 1393,compared to the year 1392 decreased 0.5 reached 205.3 (base year=1390). Consumer price percent and reached 271.7 (base year= 1390). indices of rural households for goods and In this sector, the highest increase compared to services for two special groups "goods" and the previous year, relates to the groups " "services" compared to the year 1392 increased footwear" with a 30.1% rise and the "products of by 12.2 and 18.2 percent, respectively. In the the chemical and allied industries" group with a 10.3 group "food and beverages”, the highest and the percent decrease had the lowest changes.