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147366
Mon, 10/25/2010 - 16:40
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Abu Dhabi Statistics: Inflation at 3.8% in September
Abu Dhabi, Oct 25, 2010 (WAM)- Statistics Centre - Abu Dhabi issued its monthly report on the consumer price index (CPI) for the month of September 2010, which shows inflation rate up 3.81% for the month of September this year compared with the same month last year, as the CPI rose to 121.15 points in September 2010, up from 116.71 points in September 2009.
The report also reveals that the inflation rate for the first nine months of 2010 was 2.80%, compared with the same period of 2009, as shown by the rise in the CPI during the first nine months of 2010 to 118.61 points, up from 115.38 points for the same period of 2009.
According to SCAD's report, the month-to-month rise in the CPI for September 2010 compared to August 2010 was 1.04%, as the index increased from 119.91 points in August 2010 to 121.15 points in September 2010.
In addition to analysing the CPI calculations for the month of September 2010 with 2007 fixed as the base year, the report also details CPI results by the welfare levels and types of households.
Impact of CPI Rise on Different Segments of Households: As the report reveals, the overall rise of 2.80 % in consumer prices during the first nine months of 2010 compared with the same period in 2009 has led to an increase of 2.24% in consumer prices for households of the bottom welfare quintile over the same period of comparison. As for the other welfare levels, consumer prices grew by 2.61% for households of the top quintile and by 3.04% for the upper middle welfare quintile, the largest increase among the five welfare levels.
Analysed in terms of impact by type of household, the overall 2.80% year-over-year rise in consumer prices for the first nine months of 2010 is found to have pushed up consumer prices for national households by 2.35%, compared to 3.51% for non-national households and 2.0% for collective households.
The report explains that the 2.80% rise in average consumer prices during first nine months of 2010, compared with the same period of the year 2009, reflects the net change, i.e. the outcome of upward and downward movement in the prices of the consumer basket during the two periods compared.
SCAD's report further elaborates that rises in the CPI do not necessarily correspond to higher prices for all the goods and services that make up the consumer basket, nor do they mean that all goods and services have increased by the same percentage (2.80% in this case); for there are goods and services whose prices have risen at rates above the overall rate (2.80%) and others whose rate of increase was below this general average. There are also goods and services whose prices have fallen. However, the net change or the combined outcome of these changes (upward and downward movements) in the prices of the consumer basket during the first nine months of 2010 compared to the same period in 2009 produced an overall increase in prices by 2.80%.
The Largest Rises: The report sets out the major twelve expenditure groups, as per the international classification, i.e. "Classification of Individual Consumption according to Purpose (COICOP), showing that the "housing, water, electricity, gas and other fuels" group remains the largest contributor to the overall y-o-y increase in prices during the first nine months of 2010, having accounted for 65.2% of that increase. This contribution resulted from a surge of 4.7% in the prices of this group and due the group's sizable weight, which constitutes 37.9% of the total weight of all expenditure groups. The main cause underlying the increase in the average price of this group was a rise of 5.3% in the "house rents" subgroup, which makes up 87.7% of the total weight of the group.
The next highest contributor to the overall year-over-year increase in the CPI over the first nine months of 2010 according to SCAD's report was the "Food and non-alcoholic beverages group", which accounted for 32.3% of the rise in the index, due to increases in the prices of most of the subgroups falling under this group, namely "sugar, jam, honey, chocolate and confectionery", which surged 32.48%, while "meat" prices grew by 11.9%, "vegetables" by 10.0%, "fish and seafood" by 5.3%, "foods not elsewhere classified" by 4.9%, "fruits" by 3.4% and "coffee, tea and cocoa" by 2.6%.
The "Education" group accounted for 18.4% of overall increase occurring during the first nine months of 2010 compared with the same period of 2009.
Expenditure Groups/Subgroups whose Prices Declined: On the hand the prices of the "bread and cereals" subgroup declined by 7.3%, "oils and fats" by 5.6%, "milk, cheese and eggs" by 0.8% and "mineral waters, soft drinks, fruit and vegetable juices" by 0.4%.
Also among the main groups that slowed down consumer prices during the first nine months of 2010 compared to the same period of 2009 was the "clothing and footwear," group, which detracted 27.5% from the overall rise in consumer prices for the period under review. The prices of this group retreated by 7.3% as a result of a drop in the prices of the "clothing" and "footwear" subgroups by 5.8% and 22.8%, respectively during the period specified. The "communications" group detracted 12.0% from the overall increase in consumer prices during the period under review, owing to a drop of 5.6% in the prices of this group, which resulted from a decline of in the price of the "telephone and telefax equipment" and the "telephone and telefax services" subgroups by 13.9% and 4.9%, respectively.
Consumer Prices in September 2010: Compared with September 2009 and August 2010 As per SCAD's report, average consumer prices advanced 3.8% in September 2010 compared with September 2009, as, reflecting the net price movements during the two months under comparison.
The largest rise in prices during September 2010 compared to September 2009 was in the "transport" group, which advanced 11.8%, followed by the" food and non-alcoholic beverages" group, which showed an increase in price levels by 9.0%.
As for the month-to-month rise in consumer prices, the report records a 1.04% increase for September 2010 prices compared to August 2010, reflecting the net changes in consumer prices over the periods compared.
The key expenditure groups that showed observable increases during the month of September 2010 compared to August 2010 include the "education" group, which surged 4.3% and the "furnishings, household equipment and routine household maintenance" group, which advanced 3.9%.
Impact of CPI Changes by Households' Levels of Welfare: Elaborating on the impact of the CPI movement on different welfare levels, the report shows that the rise in consumer prices during the first nine months of 2010 by 2.80% above the price levels of the same period in 2009 resulted in a surge of 2.24% in consumer prices for households of the bottom welfare quintile for the same period of comparison. The corresponding rise for other welfare levels was 2.61% for households of the top quintile and 3.04% for the upper middle quintile, which experienced the largest increase among the five welfare levels.
Furthermore, the rises produced by the overall 3.81% increase in consumer prices during the month of September 2010 compared to September 2009 were 3.93% for the bottom welfare level, 3.42% for the top welfare level and 3.99% for the upper middle welfare quintile.
The report also details the impact on different welfare levels produced by the 1.04% increase in consumer prices during the month of September 2010 compared to August 2010, which implied a rise of 0.84% in consumer prices for the bottom quintile, but affected the lower middle, the middle and upper middle welfare quintiles by rises of 1.06%, 1.11% and 1.06% in consumer prices for the said welfare levels, respectively, while the corresponding rise for the top quintile was 1.02%.
Impact of Changes in CPI Detailed by Household Type: Analysed by impact according to household type, the overall rise in consumer prices for the first nine months of 2010 compared with the same period of 2009 is found to have pushed up consumer prices for national households by 2.3%, compared to 3.5% for non-national households and 2.0% for collective households.
The report also shows that overall 3.81% rise in consumer prices during September 2010 as compared to September 2009 was felt differently by different household types, resulting in a surge of 4.09% in September 2010 consumer prices for national households, compared to corresponding rises of 3.54% and 3.48% for non-national and collective households, respectively.
Finally, a break down by household type of the 1.04% rise in consumer prices for September 2010 compared with August 2010 reveals an increase of 1.21% in consumer prices for the national households segment, while the corresponding rises for non-national and collective households were 0.92% and 0.65%, respectively.
Significance of the CPI: The consumer price Index (CPI) is one of the critically important inputs for the purposes of planning and research in various disciplines. Statistics centres and agencies in different countries consistently compile these indices, which depend on the prices of a basket of goods and services consumed by the household sector. The figures thus calculated constitute a time series that provides a measure of changes in the cost of living over time.
In preparing its CPI reports, Statistics Centre - Abu Dhabi follows the methodologies adopted internationally in this field.
SCAD's Price Indices Section has recently developed the computing of the CPI so that it is compiled according to households' types and levels of welfare. As for the welfare level approach, the population is divided into five segments (quintiles) representing five levels of welfare, based on average per capita annual expenditure. Each quintile reflects the consumption pattern represented by that quintile. In regard to the household type approach, the population is divided into three types of households as set out in the results of the Household Income and Expenditure Survey (2007-2008), namely, national, non-national and collective households. – Emirates News Agency, WAM
The report also reveals that the inflation rate for the first nine months of 2010 was 2.80%, compared with the same period of 2009, as shown by the rise in the CPI during the first nine months of 2010 to 118.61 points, up from 115.38 points for the same period of 2009.
According to SCAD's report, the month-to-month rise in the CPI for September 2010 compared to August 2010 was 1.04%, as the index increased from 119.91 points in August 2010 to 121.15 points in September 2010.
In addition to analysing the CPI calculations for the month of September 2010 with 2007 fixed as the base year, the report also details CPI results by the welfare levels and types of households.
Impact of CPI Rise on Different Segments of Households: As the report reveals, the overall rise of 2.80 % in consumer prices during the first nine months of 2010 compared with the same period in 2009 has led to an increase of 2.24% in consumer prices for households of the bottom welfare quintile over the same period of comparison. As for the other welfare levels, consumer prices grew by 2.61% for households of the top quintile and by 3.04% for the upper middle welfare quintile, the largest increase among the five welfare levels.
Analysed in terms of impact by type of household, the overall 2.80% year-over-year rise in consumer prices for the first nine months of 2010 is found to have pushed up consumer prices for national households by 2.35%, compared to 3.51% for non-national households and 2.0% for collective households.
The report explains that the 2.80% rise in average consumer prices during first nine months of 2010, compared with the same period of the year 2009, reflects the net change, i.e. the outcome of upward and downward movement in the prices of the consumer basket during the two periods compared.
SCAD's report further elaborates that rises in the CPI do not necessarily correspond to higher prices for all the goods and services that make up the consumer basket, nor do they mean that all goods and services have increased by the same percentage (2.80% in this case); for there are goods and services whose prices have risen at rates above the overall rate (2.80%) and others whose rate of increase was below this general average. There are also goods and services whose prices have fallen. However, the net change or the combined outcome of these changes (upward and downward movements) in the prices of the consumer basket during the first nine months of 2010 compared to the same period in 2009 produced an overall increase in prices by 2.80%.
The Largest Rises: The report sets out the major twelve expenditure groups, as per the international classification, i.e. "Classification of Individual Consumption according to Purpose (COICOP), showing that the "housing, water, electricity, gas and other fuels" group remains the largest contributor to the overall y-o-y increase in prices during the first nine months of 2010, having accounted for 65.2% of that increase. This contribution resulted from a surge of 4.7% in the prices of this group and due the group's sizable weight, which constitutes 37.9% of the total weight of all expenditure groups. The main cause underlying the increase in the average price of this group was a rise of 5.3% in the "house rents" subgroup, which makes up 87.7% of the total weight of the group.
The next highest contributor to the overall year-over-year increase in the CPI over the first nine months of 2010 according to SCAD's report was the "Food and non-alcoholic beverages group", which accounted for 32.3% of the rise in the index, due to increases in the prices of most of the subgroups falling under this group, namely "sugar, jam, honey, chocolate and confectionery", which surged 32.48%, while "meat" prices grew by 11.9%, "vegetables" by 10.0%, "fish and seafood" by 5.3%, "foods not elsewhere classified" by 4.9%, "fruits" by 3.4% and "coffee, tea and cocoa" by 2.6%.
The "Education" group accounted for 18.4% of overall increase occurring during the first nine months of 2010 compared with the same period of 2009.
Expenditure Groups/Subgroups whose Prices Declined: On the hand the prices of the "bread and cereals" subgroup declined by 7.3%, "oils and fats" by 5.6%, "milk, cheese and eggs" by 0.8% and "mineral waters, soft drinks, fruit and vegetable juices" by 0.4%.
Also among the main groups that slowed down consumer prices during the first nine months of 2010 compared to the same period of 2009 was the "clothing and footwear," group, which detracted 27.5% from the overall rise in consumer prices for the period under review. The prices of this group retreated by 7.3% as a result of a drop in the prices of the "clothing" and "footwear" subgroups by 5.8% and 22.8%, respectively during the period specified. The "communications" group detracted 12.0% from the overall increase in consumer prices during the period under review, owing to a drop of 5.6% in the prices of this group, which resulted from a decline of in the price of the "telephone and telefax equipment" and the "telephone and telefax services" subgroups by 13.9% and 4.9%, respectively.
Consumer Prices in September 2010: Compared with September 2009 and August 2010 As per SCAD's report, average consumer prices advanced 3.8% in September 2010 compared with September 2009, as, reflecting the net price movements during the two months under comparison.
The largest rise in prices during September 2010 compared to September 2009 was in the "transport" group, which advanced 11.8%, followed by the" food and non-alcoholic beverages" group, which showed an increase in price levels by 9.0%.
As for the month-to-month rise in consumer prices, the report records a 1.04% increase for September 2010 prices compared to August 2010, reflecting the net changes in consumer prices over the periods compared.
The key expenditure groups that showed observable increases during the month of September 2010 compared to August 2010 include the "education" group, which surged 4.3% and the "furnishings, household equipment and routine household maintenance" group, which advanced 3.9%.
Impact of CPI Changes by Households' Levels of Welfare: Elaborating on the impact of the CPI movement on different welfare levels, the report shows that the rise in consumer prices during the first nine months of 2010 by 2.80% above the price levels of the same period in 2009 resulted in a surge of 2.24% in consumer prices for households of the bottom welfare quintile for the same period of comparison. The corresponding rise for other welfare levels was 2.61% for households of the top quintile and 3.04% for the upper middle quintile, which experienced the largest increase among the five welfare levels.
Furthermore, the rises produced by the overall 3.81% increase in consumer prices during the month of September 2010 compared to September 2009 were 3.93% for the bottom welfare level, 3.42% for the top welfare level and 3.99% for the upper middle welfare quintile.
The report also details the impact on different welfare levels produced by the 1.04% increase in consumer prices during the month of September 2010 compared to August 2010, which implied a rise of 0.84% in consumer prices for the bottom quintile, but affected the lower middle, the middle and upper middle welfare quintiles by rises of 1.06%, 1.11% and 1.06% in consumer prices for the said welfare levels, respectively, while the corresponding rise for the top quintile was 1.02%.
Impact of Changes in CPI Detailed by Household Type: Analysed by impact according to household type, the overall rise in consumer prices for the first nine months of 2010 compared with the same period of 2009 is found to have pushed up consumer prices for national households by 2.3%, compared to 3.5% for non-national households and 2.0% for collective households.
The report also shows that overall 3.81% rise in consumer prices during September 2010 as compared to September 2009 was felt differently by different household types, resulting in a surge of 4.09% in September 2010 consumer prices for national households, compared to corresponding rises of 3.54% and 3.48% for non-national and collective households, respectively.
Finally, a break down by household type of the 1.04% rise in consumer prices for September 2010 compared with August 2010 reveals an increase of 1.21% in consumer prices for the national households segment, while the corresponding rises for non-national and collective households were 0.92% and 0.65%, respectively.
Significance of the CPI: The consumer price Index (CPI) is one of the critically important inputs for the purposes of planning and research in various disciplines. Statistics centres and agencies in different countries consistently compile these indices, which depend on the prices of a basket of goods and services consumed by the household sector. The figures thus calculated constitute a time series that provides a measure of changes in the cost of living over time.
In preparing its CPI reports, Statistics Centre - Abu Dhabi follows the methodologies adopted internationally in this field.
SCAD's Price Indices Section has recently developed the computing of the CPI so that it is compiled according to households' types and levels of welfare. As for the welfare level approach, the population is divided into five segments (quintiles) representing five levels of welfare, based on average per capita annual expenditure. Each quintile reflects the consumption pattern represented by that quintile. In regard to the household type approach, the population is divided into three types of households as set out in the results of the Household Income and Expenditure Survey (2007-2008), namely, national, non-national and collective households. – Emirates News Agency, WAM
