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Contents
DEDICATION .................................................................................................................................................. 2 ACKNOWLEDGEMENT ................................................................................................................................... 3 BACKGROUND ............................................................................................................................................... 4 Price statistic section computes 3 indices .................................................................................................... 4 CONSUMER PRICE INDEX .............................................................................................................................. 4 ACCORDING TO FEDERAL BUREAU OF STATISTICS .................................................................................... 4 HISTORY ........................................................................................................................................................ 5 COVERAGE OF CITIES AND SELECTION OF MARKETS.................................................................................... 5 INCOME GROUPS AND OCCUPATIONAL CATEGORIES.................................................................................. 6 CONSTRUCTION OF CPI ................................................................................................................................. 6 BASKET OF GOODS AND SERVICES................................................................................................................ 7 CONSUMER PRICE COLLECTION .................................................................................................................... 8 METHOD AND FREQUENCY OF DATA COLLECTION ...................................................................................... 8 Time for the collection of CPI prices ......................................................................................................... 9 Supervision of price data collection .............................................................................................................. 9 Steps for Calculating CPI ............................................................................................................................. 10 1) 2) 3) 4) 5) Fix the basket .................................................................................................................................. 10 Find the prices ................................................................................................................................. 10 Compute the basket cost ................................................................................................................ 10 Choosing a base year and computing the index ............................................................................. 10 Computing inflation rate ................................................................................................................. 10
USES ............................................................................................................................................................ 11
DEDICATION
We dedicate our project to our Parents, Family, and Teachers and to each group member. Because; whatever we are its because of our parents and Family and Our teacher makes us able to face different challenges and win those challenges. Last but not least group members, who support us a lot and contribute their full effort to make this project possible.
ACKNOWLEDGEMENT
Thanks to ALLAH. The almighty, which enabled us to present this project within this stipulated time period. All respects are for the holy prophet HAZRAT MUHAMMAD (S.A.W) who enables us to recognize our creature. After that we would like to express our sincere gratitude and heartily thanks to our respected PROFESSOR FAUZIA AWAN, who encourage us for this interesting project. Through this he tries to polish our minds towards business world. We are also thankful to our parents, without their love and encouragement it was not possible for us to complete our project. And we also would like to thanks our seniors
BACKGROUND
The FBS (federal bureau of statistics) came into being in 1950. After its establishment importance was given to price statistics and full-fledge price statistics section was established which was responsible for 1. collection compilation and 2. presentation of retail/wholesale prices 3. computation of price indices
7 6
1 1 1 1 1 1 1 13 2 1 1 3 1 1 1 1
2
3 1 4 1 1 1 1 1 4 1 1 1 1 1 2 1
2.
3.
4.
CONSTRUCTION OF CPI
Two basic types of data are needed to construct the CPI: price data Weighting data. The price data are collected for a sample of goods and services from a sample of sales outlets in a sample of locations for a sample of times. The weighting data are estimates of the shares of the different types of expenditure in the total expenditure covered by the index. These weights are usually based upon expenditure data obtained from expenditure surveys for a sample of households
124
40.34
42
6.10
House Rent
23.43
15
7.29
44
3.29
43
7.32
16
0.83
Education
24
3.45
36
5.88
10
Medicare
29
2.07
Total
374
100.00
7% 3% 7%
Name of Schedule
Frequency data
Date of collection
Monthly
Monthly
Part-III Household, Furniture & Equipment etc. and Transport & Communication
Monthly
Part-IV Recreation, Entertainment & Education Cleaning, Laundry & Personal Appearance & Medicare
Monthly
The "updated cost" (i.e., the price of an item at a given year, eg: the price of bread in 1982) is divided by the initial year (the price of bread in 1970), then multiplied by one hundred
INFLATION RATE
10
11