Central Bureau of Statistics, Israel

Merav Yiftach, Yoel Finkel UNECE/ILO, meeting of Consumer Price Indices,

Geneva, 8-9 May, 2008.

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Introduction: Israel’s participation in ICPWhat the former work process looked likeImproved the PPP process by Enhancing the synergies between CPI and PPPSummary and future work

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CoordinatorCountries

Eurostat 27 European Union member stat

3 members of European Free trade area

6 Western Balkan countries

Other (Turkey)

OECD 7 Non European OECD member countries: Australia, Canada, Japan, Korea, Mexico, New Zealand, USA

Other: Israel, Russia

CISTAT and ROSSTAT CIS countries

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The database is received from OECD and sent to the price coordinatorA weekly timetable for price collection is definedData collection include: prices, date of collection, details of outlets and problems in the processAn editing and logical check process is applied The PPP coordinator sends the edited data to OECDThe data are sent back from OECD to the PPP coordinator for questions and clarificationsAdditional checks are conducted in the field.

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1. Refusal to cooperate2. Definition discrepancies – some goods may be

irrelevant or non-existent in the local market3. Judgmental sampling - the sampling frame

problem for a CPI is even more complicated for PPP

4. Sales5. Seasonality6. No Synergies with the CPI7. No automatic System for classification, data

collection and editing.

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The synergies between CPI and PPP divided to 3 parts:

Price collectionMethodologyTechnology

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1. Using prices directly from the CPI:

Utilities: electricity, gas, waterTelecommunications servicesPublic transportationInsurancesRecreationOther services

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2. Prices in the CPI can be used for Supplemental information and logical check

3. Annual average for fruits & vegetables based on the monthly CPI collection

4. Good representativity: the selection process of items in the CPI based on the most popular item

5. Increasing the sample size of PPP based on CPI outlets

6.Refusals have been brought to minimum.

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100 95 9280

6555 50

30

0 00

20

40

60

80

100

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1. Sampling procedures for CPI have been expended to allow for inclusion of PPP

2. Use of administrative data for CPI (housing, health records etc.)

3. Editing and logical check are performed in the CPI unit under the supervision of the head of Division and using the same methodology as in the CPI.

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1. A system which automatically classify PPP and CPI into identical category was developed. CPI basket is updated every two year and the system accordingly

2. An initiation document for developing a total PPP system within the framework of CPI is now in process.

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Identify and mark the items in the CPI system

Receive survey by mail according

to OECD timetable

Data collection for PPP in the field:

(1 )if in the CPI system, then CPI( 2 )items that are not in the system

- collect in large cities and/or shopping centers in other areas

Integrate prices with CPI and compute averages

For PPP

Editing and logical

checks The PPP coordinator

sends the edited data to OECD

Receive preliminary results

for statistical editing Additional checks

in the field and in the

CPI system

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Computerize data collection – HPC Computerize the other stages of processTake advantage of the present CPI technology

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15

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Identify and mark the items in the CPI system

Receive survey by mail according

to OECD timetable Data collection for PPP

in the field:(1 )if in the CPI system, then CPI

( 2 )items that are not in the system - collect in large cities and/or

shopping centers in other areas

Integrate prices with CPI and compute averages

For PPP

Editing and logical

checks The PPP coordinator

sends the edited data to OECD

Receive preliminary results

for statistical editing Additional checks

in the field and in the

CPI system

computerized

Will computerized

Will computerized

Will computerizedWill computerized