Consumer Price Index (CPI)
The CPI describes the movements of the general price level of goods and services bought by households in Afghanistan. The Consumer Price Index (CPI) is the mostly used indicator of changes in general price level. The main purpose of the consumer price is change in consumer price level and measure of consumer price inflation for the data users. The CPI and its monthly movements are used as key targets for monetary and fiscal policy, as well as adjusting for inflation in business contracts, employees’ salaries and retirees’ pensions and other social issues.
In Afghanistan households can use the CPI to assess the general inflation and the purchasing power of their salaries.
The National Statistics and Information Authority For the first time without the technical assistance of international institutions and organizations improved the CPI compilation methodology to better monitor this key area of macroeconomic statistics.
At the beginning of 1394 prices are collected from 20 provinces in Afghanistan. Ideally the price collection would take place in all provinces and the NSIA intends to increase the price collection further during subsequent index revisions in future.
The calculation of the index follows Laspeyres type price index formula.
The Classification of Individual Consumption according to Purpose (COICOP) has used in CPI.
The weights are derived from the 2011/12 Afghanistan living conditions survey, covering both urban and rural households in each province. Implicitly, the final CPI weights refer to the expenditure of consuming the same 2011/12 quantities in using prices of 2011/12.
The items comprising the CPI consumer basket are including of 290 items.
The National CPI is calculated, base on price collection with a total of about 20010 monthly price quotation which obtained from three deferent outlets of 20 main cities in the provinces.
Prices collectors (including Kabul) carry out the monthly price collection between the 10th and 20th of the each month.
National Consumer Price Index Year book