REBASING THE CONSUMER PRICE INDEX (CPI),

JUNE 2004

MALE’ CPI

January 2007

Table of Contents I. CPI system in the Maldives II - Rebasing of CPI

A – The 2004-Based CPI series B – Linking of Historical series C – Comparison between 1995 based and 2004 based CPI C.1 – comparison of the most recent year, 2006 D – Data dissemination

Appendices Appendix I: CPI

- What is CPI and what does it measure? - The main use of CPI - Scope of CPI - Structure of CPI - Price collection - Computation of Indices

Appendix II: CPI basket with weights for Male’ by COICOP, June 2004 Appendix III: Monthly CPI for Male’, 2005 Appendix IV: Monthly Inflation Rates for Male’, 2005 Appendix V: Monthly CPI for Male’, 2006 Appendix VI: Monthly Inflation Rates for Male’, 2006 Appendix VII: Linked CPI series with June 2004=100 as Base Appendix VIII: Figure 2: Inflation rates by major categories, 2006

Figure 3: Monthly Inflation Rates, 2006 Tables and Figures in the text Table 1: Weighting Pattern of CPI, 2004 based and 1995 based, Male’ Table 2: Number of items in the CPI basket Table 3: CPI, Male’ and Inflation rates for 2004 and 2005, with both base periods Table 4: CPI, Male’ and inflation rates, 2006 Figure 1: Weights, June 1995=100 and June 2004=100

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I. CPI system in the Maldives 1.1 Consumer Price Index has been one of the oldest indicators produced by the Ministry of Planning and National Development. CPI has been compiled on a monthly basis since 1981. Initially when the compilation started, there were 81 items in the CPI basket which comprises of goods and services. 1.2 CPI has been revisited and rebased two times in 1995 and 2004 since its initial compilation. Each time the rebasing was carried out when it was felt that there were significant changes in the consumption pattern of its populace and consequently the CPI basket needs to be updated to accommodate these changes and reflect the current consumption patterns. Both the times the new basket selection and rebasing was carried out based on the Household Income and Expenditure Surveys, conducted in 1993 and 2002/2003. Weights were calculated based on the expenditure pattern of the households surveyed in the surveys while the items were chosen on the basis of its significance in the consumer’s expenditure. Prior to the recent rebasing carried out under the technical assistance of Asian Development Bank Capacity Building for the National Statistical System TA No. 4103-MLD, a first rebasing was carried out with IMF technical assistance in 1995. 1.3 Initially CPI was calculated using Microsoft Excel but with the first rebasing IMF introduced Excel based statistical software for the purpose. This package was quite simple in its use and was capable of implementing the Laspeyres formula in accordance with international standards and also imputes any missing elementary price index for a given period using the change of the index for the relevant grouping using non-missing elementary indices. 1.4 With the most recent rebasing, new software was introduced for the purpose of CPI calculation. The new system is based on specially designed software for price and quantity indices, Prima.

II - Rebasing of CPI 2.1 The consumer price index of the Maldives has been rebased in 1995 and 2004 since the index calculation began in 1981. The latest revision was based on the results of the Household Income and Expenditure Survey (HIES) conducted between September 2002 and June 2003. 2.2 This paper presents the methodology used for rebasing of CPI series using the updated weighting pattern. An overview of the concept and definition as well as uses of CPI, and its compilation are presented as APPENDIX I with the weighting pattern for 2004 based CPI as well as a detailed list of items selected for pricing as APPENDIX II. A - The 2004-Based CPI series 2.3 To reflect changes in the expenditure of private households, the composition of goods and services as well as the weighting pattern for the CPI has to be revised every five years, according to international recommendations. But, this is not possible in the Maldives as a large countrywide HIE survey needs to be conducted in order to revise the weights and basket. Hence,

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in the Maldives this process has been very irregular. The most recent revision took place 10 years after the last revision. 2.4 The objective of a CPI revision is basically to review the weighting pattern of the CPI, the basket of goods and services priced and overcome any methodological hiccups. 2.5 The weighting pattern of CPI shows the relative importance of each item in the basket of goods and services, that is their share as a proportion of total household expenditure. HIES enumerated around 880 households of which Male’ accounted for about 32%. More than 80% of the household’s information was utilised in calculating the weights for CPI. 2.6 The base period for the new CPI series is June 2004. The expenditure values obtained from HIES 2002/03 were updated to 2004 June price levels by taking into account the price changes between these periods. 2.7 Table 1 shows the weighting pattern for 2004 based CPI. The corresponding weighting pattern for 1995 is also presented. Table 1: Weighting Pattern of CPI, 2004 based and 1995 based, Male’

CPI weights (‘04) CPI weights (‘95) Food, beverages and tobacco 30.86 36.87 Food, beverages and tobacco excl. fish 25.91 30.83 Fish and fish products 4.95 6.04 Non-food items 69.14 63.13 Clothing and footwear 5.01 9.78 Housing, water, electricity, gas etc. 25.15 14.91 Furnishing, equipment and maintenance 5.73 8.31 Medical care and health expenses 5.64 2.48 Transport and communication 13.84 11.01 Transport* 5.98 Communication* 7.86 Recreation and culture 4.30 3.15 Education 3.10 8.61 Miscellaneous goods and services 6.15 4.88 Religion* 0.22 Total 100.0 100.0

* No base weights available for 1995.

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Figure 1: Changes in Male' CPI weights,1995 and 2005

10 8

2 3 55

25

6 6 4 369

1115

37

31

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%CPI weights 1995

CPI weights 2004

2.8 Over the 10 year period, the weight for food fell by 6 percent from 37 percent to 31 percent in 2004, but continued to account for the highest proportion. 2.9 Housing, water, fuel and power whose weight increased from 15 percent to 25 percent still remains the second largest group. The higher share of this group can be attributed to the increased spending on accommodation as well as fuel. 2.10 The share of health care rose by 4 percent reflecting higher expenditure on medical facilities, especially from private medical institutions. The weight for education declined from 9 percent to 3 percent. This was to some extent due to low prices of text books which were locally printed as well as low prices on most stationary products as well as due to changes in the composition of items priced. 2.11 The share of clothing and footwear declined from 10 percent to 5 percent which maybe attributed largely to the price decline in most clothing products due to the competition in the clothing business in the country. The same goes for furniture and fixtures group which declined expenditures by 2 percent. 2.12 The increase in transport and communication shares by 3 percent in CPI may be attributed to the increase in expenditure by mobile users, which has increased drastically in the recent years.

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2.13 Recreation and entertainment also increased by 2 percent while personal care now depicted in miscellaneous goods category increase only one percent.

2.14 New sample of items in the basket has expanded the basket from 121 items to 200 items

in the 2004 based CPI basket. Table 2: Number of items in the CPI basket

Number of items Sl. COICOP Current

series New series

01 01, 02 & 11 Food, beverages and tobacco 42 73 02 01.1.3 Fish and fish products 6 8 03 03 Clothing and footwear 7 16 04 04 Housing, water, electricity, gas and other fuels 11 12 05 05 Furnishing, equipment and maintenance 17 22 06 06 Medical care and health expenses 5 13 07 07-08 Transport and communication 11 17

07. Transport 10 08. Communication 7

08 09 Recreation and culture 6 18 09 10 Education 6 2 10 12 Personal care, miscellaneous goods and services 10 18 11 Religious activities 1

Total 121 200 2.15 Minor methodological changes have been applied to the new series. This has been part and parcel of using PRIMA to compile CPI. Prima uses the standard Laspeyres formula which compares the price for the current period with that of the base period every time and hence if an error occurred it only affects that period’s index only. Previously it was the modified Laspeyres which was used for which if any error occurred during any one year this error is passed on to the other years as well. B- Linking of Historical Series 2.16 To facilitate comparison of price changes over time, historical CPI data series were

linked to the 2004-based CPI data series at the new reference period (June2004). The linked series was compiled using “splicing method” with June 2004 as base period. The historical series is provided as APPENDIX V.

2.17 An analysis of the historical series shows that from 1995 to 2001 there is no difference in

the inflation rates as expected with the splicing methodology used. However, from 2002 onwards the rates are different from the previous base period rates. From 2002 onwards the new basket has been applied, and for those items without any prices (because for 2002 we were following the 121 item basket for data collection) an average of the group was utilized. Hence the difference in the inflation rates in the linked series.

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C - Comparison between 1995 based and 2004 based CPI 2.18 Unlike the previous sections in this report, from this point onward, COICOP breakdowns

will be used to make comparison as this will be the format that CPI will be compiled from 2007 onwards.

The following table shows the differences in the two series for the years 2004 and 2005. Table 3: CPI, Male’ and Inflation rates for 2004 and 2005, with both base periods

1995based 2004based 1995based inflation

2004based inflation

2004 2005 2004 2005 2005 2005Total 99.73 103.38 100.05 101.39 3.7 1.3Food And Non-Alcoholic Beverages 97.57 102.59 98.86 104.95 5.1 6.21. Fish 78.95 88.17 87.33 96.65 11.7 10.72. Other Food *1/ *1/ 101.53 107.45 5.83. Non-alcoholic beverages *1/ *1/ 100.31 100.87 0.6Tobacco and Narcotics *1/ *1/ 101.03 103.63 2.6Clothing and Footwear 100.49 100.19 101.07 104.11 -0.3 3.0Housing, Water, Electricity, Gas, Etc 101.2 107.53 101.68 102.78 6.3 1.1Furnishings, Household Equipment, Etc 100.06 101.13 99.19 104.06 1.1 4.9Health 100.14 100.9 100.25 100.56 0.8 0.3Transport and Communication 100.94 109.05 *2/ *2/ 8.0 Transport *3/ *3/ 102.18 114.04 11.6 Communications *3/ *3/ 94.59 78.15 -17.4Recreation and Culture 99.27 101.44 99.18 91.19 2.2 -8.1Education 100.89 101.8 100.09 101.85 0.9 1.8Hotels, Cafés and Restaurants *1/ *1/ 99.53 95.91 -3.6Miscellaneous Goods and Services 104.73 99.38 103.87 100.87 -5.1 -2.9Religion *4/ *4/ 100 100.00 0.0*1/ breakdowns were not calculated in the 1995 based CPI, all included in food and beverages *2/ two groups have been separated out in the 2004 based index, aggregate not available *3/ breakdowns were not calculated in the 1995 based CPI, both aggregated in Transport and communication group *4/ newly introduced group, previously came under personal goods and services alias miscellaneous goods and services 2.18 The lower growth rate in the 2004 based CPI is the result of major changes in the expenditure pattern captured in the new weights. Also the substantial changes in the composition of items between and within the major groups play an important role. For instance Clothing and footwear group, weight has declined by half, but inflation has risen. This maybe attributed to the fact that the number of items for which data collected has more than doubled for this group and these new items demands a high price. 2.19 However, for the Housing group, weight has increased from 15 to 25, but the inflation has declined from 6.3 to 1.1. In the group no change in rent of houses/ rooms was observed

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during the period, nor were there any change in prices observed for garbage disposal, plywood, paint, roofing sheet and construction charges. However price of cement, cooking gas, kerosene oil increased while electricity charges and water charges declined. Hence the slight inflation in this category could be attributed to the fact that those items with high weights in 2004 basket did not increase much if at all, with the totaling effect of decline in prices of electricity and water setting in. The high figure can be attributed to the fact that cement was attached a weight of 1.47 in 1995 basket while it was 0.002 in 2004 basket. Price of cement was observed to be increasing, which may have been one of the reasons behind the high inflation observed for this category in the 1995 base weighted index. 2.20 Inflation rate of furniture increased from 1.1 to 4.9, while weights declined but the number of items priced increased from 17 to 22 items. 2.21 In the health category inflation rate declined from 0.8 to 0.3 while both weights and also the number of items increased which would relate solely to price changes. 2.22 Transport and communication is broken down into two separate sectors in the 2004 based CPI as each of them separately account for more than 5% of total weights. 2.23 Inflation rates in the category recreation and culture has declined while its weights as well as number of items increased. This maybe attributed to the fact that prices have declined for those items such as computers and mobile phones which has the highest weights in the category. 2.24 As for the category Education, inflations rate has increased while weights as well as the number of items priced declined. 2.25 Inflation rate of miscellaneous good/ personal goods have increased. This maybe

attributed to the fact that weights as well as the number of items priced has increased.

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C.1 Comparison of the most recent year, 2006 Table 4: CPI weights, index levels and inflation rates, 2006

CPI weights CPI 2006 Inflation Rates

2006

1995

weights2004

weights1995 base

2004 base

1995 base

2004 base

Total 100.00 100.00 128.76 104.09 3.59

2.67 Food And Non-Alcoholic Beverages 36.87 25.91 140.39 108.99 6.81

3.85

1. Fish 6.04 4.95 188.76 90.23 -6.15

(6.64)

2. Other Food 20.16 *1/ 114.39

6.47

3. Non-alcoholic beverages 2.27 *1/ 101.96

1.08

Tobacco and Narcotics 1.91 *1/ 108.33

4.54

Clothing and Footwear 9.78 5.01 96.15 104.71 0.66

0.58 Housing, Water, Electricity, Gas, Etc 14.91 25.15 119.92 105.56 8.97

2.70

Furnishings, Household Equipment, Etc 8.31 5.73 109.77 107.09 0.23

2.90

Health 2.48 5.64 109.72 112.62 2.93

11.99 Transport and Communication 11.01 143.52 *2/ 4.23

Transport 5.98 *3/ 119.84

5.09

Communications 7.86 *3/ 70.63

(9.63)

Recreation and Culture 3.15 4.30 98.28 88.61 0.06

(2.84)

Education 8.61 3.10 122.82 106.72 0.56

4.79

Hotels, Cafés and Restaurants 1.57 *1/ 102.08

6.43

Miscellaneous Goods and Services 4.88 6.15 112.08 101.34 2.05

0.46 Religion 0.22 *4/ 100.00 0.00

2.26 The consumer price inflation for the year is based on the percentage change in the simple

average of yearly Consumer Price Index (CPI) which, according to the index with 2004 base weights accelerated to 2.67 percent in 2006. However, this rate was registered at 3.59 % with the previous base, which was 1995. This maybe attributed to the overall effect of changes in weights as well as introduction of new items in the new basket.

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2.27 Food and non-alcoholic beverages group registered a price growth of 3.85% for 2004

based CPI while price increase registered from index with 1995 based almost doubled with 6.81%. The reasons that contribute to this difference are firstly, the high weight attached to food group in 1995 based index compared to that of 2004. Secondly, the increase in number of items in the group almost doubled from 42 to 73. These newly introduced items demand on average a low price than those items in 1995 basket.

2.28 Fish index, although weights have declined slightly in the 2004 based index, both bases

show a similar trend in price changes. Compared to an year ago prices of fish has declined by about 6 percentage points in 2006 which is due to large quantities of fish available in the market during the early parts of 2006.

2.29 Other food, Non-alcoholic beverages being new items in the 2004 based CPI, there is no

way of comparing these rates. However, these items also registered an increase in prices over the past year, with 6.47% and 1.0% respectively.

2.30 Tobacco and Narcotics is also a new product and it also registered a positive growth in

prices of 4.54% 2.31 In the expenditure groups, clothing and footwear experienced a decline in the weights

attached to the item from 1995 to 2004. However, the rate at which the price grew is not much different while comparing the two indices. The weight decline effect is overshadowed by the positive growth in the prices of items represented in this category.

2.32 Housing, Water, Electricity etc is the category with the highest weight in both the base

periods. However, the importance of this category in the expenditures of the nation has doubled with new weight being 25.25% compared to 14.91% in 1995. However, the index shows the opposite, 1995 based rates being higher than 2004 based rates, 8.97% and 2.70%. A number of factors contributed to this difference in the rates. Firstly, the distribution of weights among the items in the category changed. For instance, weights of rent, garbage disposal, water and gas increased from 1995 weights while weights of kerosene, electricity, and roofing sheets declined slightly while cement and plywood decreased significantly from 1995 weights. On the price issue, for most items whose weight increased average prices declined. And also prices increased for those items whose weights declined, especially for cement, plywood, kerosene and electricity. However, rent and gas which had an increase in weights also registered an increase in average prices over the previous year.

2.33 Furnishing, Household equipment etc registered an 8.97% growth in inflation with 1995

based index whereas, 2004 based indexed showed a much smaller value of 2.70% the decline being an effect of the decline in weights in the category.

2.34 Health category registered a slight increase of 2.93% in 1995 based index. However, the

inflation rate with 2004 based was substantially higher at 11.99%. Part of the reasoning of this difference is due to increase in weight of health in 2004 compared to 1995. In addition, 8 new items have been introduced in the 2004 based CPI, namely out-patient

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services, doctors consulting fee (specialist) and some tests and medicines have registered an increase in prices, whose inclusion has made a substantial impact on the inflation rate.

2.35 Transport and Communications category have been separated out in the 2004 based CPI

to two different categories. To compare the two bases, if we average it out it shows a decline in the category. This is due to the under representation in the 1995 based CPI of communication. For instance, compared to 7 items in the 2004 based CPI there were only 2 items in 1995 based series for communication. Furthermore, the newly introduced items such as internet charges, mobile charges and mobile sets prices have been on the decline depicting a decline in the inflation rate in the category, communication. The increase in transport category is offset by the larger decline in communications.

2.36 Recreation and culture also registered opposite directions in inflation rates in the two

bases. Major factors for this difference are newly introduced items in the category. Number of items have increased from 6 to 18, and prices of these new items such as computers, TV, recordable CD’s have been on the decline in the year in review and along with it the weights attached to these in the 2004 based CPI is in general higher than the comparable items in both the baskets, hence the negative growth in the inflation rate. However, in 1995 based CPI, film processing, video tapes and audio cassettes prices have increased while weights for these are considerably higher in this basket.

2.37 Education which experienced a decline in weights in 2004 based compared to 1995 based

registered a much higher inflation rate in the 2004 based CPI. Furthermore, this is the only category which has fewer items represented in 2004 basket than in 1995 basket basically due to lower expenditure recorded on education in the HIES 2002/2003. Here the effect is of tuition fees increasing drastically from Rufiyaa 200 to Rufiyaa 300 which affects the 2004 based CPI more because of the fewer items in the category.

2.38 Hotel cafés and restaurants as well as religion are two new categories introduced in the

2004 based CPI. 2.39 Personal goods and services in the 1995 based CPI have been replaced by miscellaneous

goods and services in the latter CPI with more items representing the category as well as a higher weight attached to it. However, the inflation rate registered in the 2004 based CPI is lower than that of 1995 based. This is the effect of the newly introduced items as well as those dropped from the previous basket. For instance, item wrist watch, which had a weight of 0.0021 registered a price increase of 24% which is reflected in the 1995 based series, however this item is not in the 2004 basket and hence does not have any effect.

D - Data Dissemination 2.40 The 2004 based CPI series commences from June 2004. The linked historical series is

also made available to facilitate comparison. The format of presentation has been revised for the 2004 based CPI, for international comparability. However, the previous format will also be published for ease of use until the end of 2006. From 2007 onwards the CPI will be published with the new base on a monthly basis.

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III - APPENDIX I: CPI

What is CPI and what does it measures? 3.1 The consumer price index (CPI) is one of the most important statistical indicators, which not only affects the socio-economic development measures, but also the living condition of the ordinary people. Theoretically, all consumer goods and services fall under the scope of the CPI, but practically, its coverage is confined to the ‘Consumer's basket’ which represents the total household consumption. Even if an individual item is not included in the basket, it is considered as represented in the basket by other items. 3.2 The CPI measures the changes in the price of a fixed basket of goods and services commonly purchased by the majority of the households over time. The types and specifications of the goods and services in the CPI basket as well as their quantities are kept constant at the base period. This ensures that any changes in the index reflect solely price changes over time. 3.3 The CPI reflects the price movements and not the actual price levels. Suppose the indices for bread and flour for a particular period are 110 points and 120 points respectively. This does not mean that flour costs more than bread but it simply implies that the prices of bread and flour have risen by 10 per cent and 20 per cent respectively since the base period. 3.4 The CPI is also not a Cost of Living Index (COLI). A COLI indicates what one would need to spend in order to maintain a certain level of satisfaction. Consumers are able to make substitutions in order to maintain a certain standard of living. It is, however not possible to determine the level of well being as one’s spending habits change with variation in lifestyle, market conditions, income levels, consumer preferences, growing affluence, composition of households etc. This makes it difficult to compile a COLI as there is no objective way of measuring the above mentioned changes. However, the CPI could be used as a proxy to COLI when the basket of goods and services and the level of households’ well-being are relatively stable. The main use of CPI 3.5 CPI is most commonly used as a macro-economic indicator of inflation. It is also used as a price deflator in the compilation of real sector statistics and indicators such as GDP at constant prices. 3.6 In the private business it is also used by employers as a basis of wage revisions in order to maintain the purchasing power of real wages and salaries. 3.7 Furthermore, it is globally used to compare the inflation rates of the country to that of other countries. Scope and Structure of CPI 3.8 The CPI covers all expenditure items commonly consumed by the households. 3.9 The CPI basket contains only the essential and representative goods and services commonly purchased by the majority of households. It is classified into 12 groups with sub-groupings attached to some groups.

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Price Collection 3.10 The price used for the compilation of the CPI is primarily obtained from the outlets chosen for the price collection. Prices actually paid by customers, inclusive of all taxes and service charges are used in the compilation of CPI. 3.11 The two common modes of price collection are postal surveys and phone surveys. For most of the goods and services such as food and provisions, prices are collected using a pre-itemized pricing schedule which is posted to the outlet. This specially designed schedule contains the pre-specified brands and other detailed descriptions of the selected goods/services. For others such as house rents prices are collected by staff of Statistics section through phone surveys. Additional information such as fish prices and expatriate labour charges etc are obtained from respective government authorities. 3.12 The frequency of the survey depends on the price behaviour of the goods or services. Perishable food items for which prices are volatile are surveyed more frequently in a month while items with more stable prices are priced monthly. As for government rates and charges they are monitored as and when the rates change. Computation of Indices 3.13 The CPI is calculated using the base-weighted Laspeyres’ formula

100*.

00

000

1

00

01

⎥⎥⎥⎥

⎦

⎤

⎢⎢⎢⎢

⎣

⎡

==∑∑

∑∑

qp

qppp

qpqp

I p

Where Ip is the index for period 1 compared with base period p1 is the price of item j in period 1 p0 is the price of item j in base period 0 q0 is the quantity of item j in base period 0 p1/p0 is the price relative of item j between period 1 and base period 0 p0*q0 is the expenditure on item j in the base period p1*q0 is the expenditure on the same quantity of item j in period 1 ∑ means the summation over all selected items in the basket The base period P0 of any item refers to the average price in that period. Thus the base period indices for any item are all equal to 100.00 index points. 3.14 As the CPI is compiled on a monthly basis, the whole year index is derived by taking a simple average of the 12 months’ indices for the year. Likewise the annual inflation rate for any year is computed by taking the ratio of the yearly index compared with that of the preceding year.

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IV - APPENDIX 2: Rents

4. The calculation of rents in the Consumer Price Index (CPI) 4.1 The consumer price index is the most important indicator used in the country to measure the

changes in price affecting the households. The CPI is a monthly index series and most prices are collected with this frequency. For most items in the basket, there is no difficulty in using these prices directly in the computations.

4.2 However, the measurement of changes in house rents cannot be done in the same way. The

reason for this is that new rental information does not apply to all the households that live in rented accommodation, but only for those that make a new rental agreement. In many countries rents are adjusted every year, but in Maldives the most common agreement is that rents are fixed for the duration of a lease (which is generally open-ended) and thus only change when a new tenant moves into an apartment or a house or when the lease expires.

4.3 Until recently, the practice has been to follow a small number of houses and then calculate

the changes in rents based on the changes recorded for those units. As rent changes in the small sample were rather infrequent, the resulting index did not reflect the changes in the broader market.

4.4 Therefore, a new procedure has been introduced, which should result in a more realistic

reflection of changes in the market rents from month to month. This procedure is simple but can be effective.

4.5 In the newspapers, landlords advertise units for rent (there are effectively no real estate agents

in Male’). Staff of Statistics contact the landlords and ask four basic items for information, namely:

a. New monthly rent for the unit; b. Previous rent for the unit; c. Duration of the past lease; and d. Duration of the new lease In addition, the amount of deposit and other advances may be noted along with identifying characteristics. 4.6 Taking a fair number of observations (say ten every week) the three items of information

above can be used to calculate two data items, namely: The average percentage change in rent; and The average duration of the previous lease (in months). Both these items can be calculated as simple averages of the individual observations. For a

cross –check on the average lease duration, the new average duration is also calculated. 4.7 The inverse of the average duration of the previous rent gives the share of the households

affected by the change in rent, which is applied to the percentage change for the sample to obtain the change for the total population. Thus, if the changes in rents for the units monitored during the month is 30% and the average duration of the precious rents is 21/2 year

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,( 30 months), the percentage change in all rents for the month is 1% (1/30th of the rents have increased by 30%).

4.8 As the number of observations per month is rather small, it is best to calculate the average

duration of precious leases on the basis all previous records ( going back for a period equivalent to the average length of the leases, In the example given, the past 30 months would be used in the calculations. As the average duration changes over time (probably shortening), this approach, can be used to adjust it.

4.9 It maybe noted that if this approach yields regular information on all the three data items

listed, this method is completely independent from other information such as the relative or absolute size of the rental market. These items only come up when the index is being rebased from time to time using the results of new household surveys.

4.10 A further improvement can probably be made by using the census information to obtain

the share of the rented apartments by number of rooms and then apply the rent changes at this lower level of aggregation. However, it likely will not change the numbers significantly as the mix of houses coming on the market for rental will quite closely reflect the composition of the housing stock.

4.11 The PRIMA data set will need to be adjusted for rents so that the indices derived from

this information can be entered directly, in effect for a single rental item. The monthly price change then needs to be linked to the index for the previous month to obtain the new index to be entered in PRIMA

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Appendix III: CPI basket with weights for Male’ by COICOP, June 2004

COICOP CPC Item Code Code Major Groups, Items

Male' weights out of a 100

1. Food, beverages and tobacco products excluding fish 25.91

1 0.1 0 2342001 1 1 Biscuits 0.49 1 0.1 0 2342001 2 1 Bread 0.72 1 0.1 1 2366001 3 1 Bread spreads 0.13 1 0.1 0 2343002 4 1 Butter Buns 0.04 1 0.1 0 2343002 5 2 Buns 0.14 1 0.1 0 2316001 6 1 Rice-Basmati 0.69 1 0.1 0 2316001 7 2 Rice 0.57 1 0.1 0 2312099 8 1 Flour 0.78 1 0.1 0 2371002 9 1 Noodles 0.34 1 0.1 0 2315002 10 1 Corn Flakes 0.14 1 0.1 0 2112202 11 1 Chicken sausage 0.24 1 0.1 0 2112201 12 2 Chicken Drumsticks 0.86 1 0.1 0 2112201 13 3 Frozen Chicken 0.45 1 0.1 0 292001 14 1 Egg 0.58 1 0.1 0 2111201 15 1 Frozen beef 0.09 1 0.1 0 2315001 16 1 Baby Food - Cereals 0.27 1 0.1 0 2315001 17 2 Baby Food - Fruit 0.38 1 0.1 0 2291001 18 1 Baby Milk Powder 0.02 1 0.1 0 2291003 19 1 Milk Powder 2.40 1 0.1 0 2292001 20 1 Condensed milk 0.26 1 0.1 0 2211003 21 2 Dairy milk 0.74 1 0.1 1 2294099 22 3 Margarine 0.17 1 0.1 1 2165001 23 1 Cooking Oil 0.78 1 0.1 1 134901 24 1 Apple 0.45 1 0.1 1 131001 25 1 Banana 0.43 1 0.1 1 132002 26 1 Orange 0.32 1 0.1 1 134101 27 2 Water melon 0.19 1 0.1 1 131007 28 3 Mango 0.37 1 0.1 1 2154002 29 1 Canned Mixed fruits 0.07 1 0.1 1 2154001 30 3 Canned Pineapple 0.08 1 0.1 1 2153003 31 1 Dates 0.18 1 0.1 1 131006 32 1 Coconut 0.78

16

1 0.1 1 132001 33 1 Lemon 0.39 1 0.1 1 123912 34 1 Green Chilli 0.08 1 0.1 1 123912 35 1 Gotheyo Mirus 0.32

1 0.1 1 123926 36 1Mixed Fresh Vegetables 0.32

1 0.1 1 123925 37 2 Tomato 0.04 1 0.1 1 123910 38 3 Cucumber 0.07 1 0.1 1 124005 39 4 Carrot 0.24 1 0.1 1 123904 40 5 Cabbage 0.16 1 0.1 1 124009 41 6 Beans 0.07 1 0.1 1 124006 42 7 Garlic 0.09 1 0.1 1 124007 43 8 Ginger 0.04 1 0.1 1 121001 44 1 Potato 0.21 1 0.1 1 2139001 45 1 Canned Baked Beans 0.06 1 0.1 1 2139002 46 2 Canned Grean peas 0.01 1 0.1 1 122002 47 1 Dhal 0.13 1 0.1 1 1620001 48 1 Salt 0.11 1 0.1 1 2352001 49 1 Sugar 0.60 1 0.1 1 162010 50 2 Curry Powder 0.27 1 0.1 1 162002 51 4 Chilli Powder (local) 0.11 1 0.1 1 124008 52 1 Onion 0.33 1 0.2 0 2391399 53 1 Tea Leaves-tea bag 0.24 1 0.2 0 2391399 54 3 Tea Leaves-loose 0.06 1 0.2 0 2391199 55 1 Coffee 0.28 1 0.2 0 2140001 56 1 Juice-Sun quick 0.61 1 0.2 0 2140001 57 2 Juice-Foster Clark 0.61 1 0.1 0 2291005 58 1 Milo 0.41 1 0.1 0 2342002 59 1 Apollo 0.06 1 0.1 0 2342002 60 1 Candy 0.00 1 0.1 1 2297099 61 1 Ice cream 0.14

0 2449001 62 2 Coke 0.14 1 0.2 0 2441001 63 1 Mineral water, bottle 0.33 2 0 0 136003 64 1 Aracanut 0.17 2 0 0 2501001 65 1 Cigarette 1.74 1 0 1 2399905 66 1 Salty Short eats 0.76 1 0 1 2399904 67 1 Sweet Short eats 0.76

68 1 Meals (Lunch packet) 0.38 11 0 0 6329001 69 1 Pizza 0.47 6329001 70 2 Restaurant Meals 0.72

1 0 1 2152099 71 1 Jam 0.11 0 0 1 2399501 72 1 Tomato past 0.06 1 0 1 2399501 73 1 Sauce 0.06

2. Fish and fish product 4.95 1 0 0 2124001 74 1 Canned Fish in oil 0.34 1 0 0 2124001 75 2 Canned Fish in brine 0.34

17

1 0 0 2123001 76 1 Dried Fish Chips 0.13 1 0 0 2124003 77 1 Fish Paste 0.98 1 0 0 2123002 78 1 Smoked fish 0.39 1 0 0 412001 79 1 Skipjack tuna 2.21 1 0 0 2124099 80 1 Other tuna 0.23 1 0 0 412003 81 1 Reef fish 0.32

3. Clothing and footwear 5.01 3 0 0 28232 82 1 Men’s T-Shirt 0.58 3 0 0 28232 83 1 Men’s Shirt 0.65 3 0 0 28232 84 1 School Uniform 0.22 3 0 0 28221 85 1 Men’s Trousers 0.36 3 0 0 28221 86 1 Men’s Jeans 0.36 3 0 0 28221 87 1 Women’s Jeans 0.39 3 0 0 28234 88 1 Women’s T.shirt 0.22 3 0 0 26840 89 1 Dress material 0.52

3 0 0 28234 90 1Tailoring women's blouse 0.25

3 0 0 28235 91 1Stitching the national dress 0.08

3 0 0 29340 92 1 School shoes 0.10 3 0 0 29420 93 1 Sport shoes 0.18 3 0 0 29320 94 1 Nylon faivaan 0.01 3 0 0 29330 95 1 Men's shoes 0.74 3 0 0 29320 96 1 Men's sandals 0.29 3 0 0 29320 97 1 Women's sandals 0.06

4. Housing, water, fuel and power 25.15 4 0 0 7211101 98 1 Rent (House) 10.19 4 0 0 7211101 99 2 Rent (Room) 4.48 4 0 0 69210 100 1 Water 3.03 4 1 0 69110 101 1 Electricity charges 4.91 4 0 0 94211 102 1 Garbage Disposal 0.51 4 1 0 33340 103 1 Kerosene 0.32 4 1 0 69120 104 1 Cooking gas 1.14 4 0 0 37440 105 1 Cement 0.00 4 0 0 31410 106 1 Plywood 0.00 4 0 0 3511001 107 1 Paint 0.17 4 0 0 37440 108 1 Roofing Sheet 0.11 4 0 0 54112 109 1 Construction charges 0.29

5 5. Furniture, furnishing, household equipment & operation 5.73

5 0 0 38140 110 1 Bedroom set 0.11 5 0 0 38140 111 2 Single Bed 0.16

5 0 0 38150 112 1Mattress Kurl on / temptation 0.08

5 0 0 38119 113 1 Chair 0.73

18

5 0 0 38112 114 1 Sofa Set 0.05 5 0 0 38930 115 1 Linoleum 0.11 5 0 0 2712002 116 1 Bed sheet 0.17 5 0 0 4481101 117 1 Refrigerator 0.19 5 0 0 4482201 118 1 Stove 0.20 5 0 0 4481602 119 1 Iron 0.04 5 0 0 4481502 120 1 Fan 0.51 5 0 0 4481401 121 1 Sewing Machine 0.79 5 0 0 4481201 122 1 Washing Machine 0.29

5 0 0 8715103 123 1Repairs to HH Appliance 0.20

5 1 0 4322001 124 1 Water pump 0.15 5 1 0 46410 125 1 Battery 0.01 5 1 0 35322 126 1 Washing power 0.83 5 1 0 34620 127 1 Insecticides 0.41 5 1 0 98000 128 1 Domestic Servants 0.28 5 0.3 0 44824 129 1 Thermo flask 0.18 5 0.1 0 5461101 130 1 Fluorescent Tube 0.16

0 0 3719303 131 1 Glasses 0.10 6. Medical care and health expenses 5.64

6 0 0 352601 132 1 Panadol 0.13 6 0 0 352601 133 1 Forceival 0.10 6 0 0 352601 134 1 Vicks Balm 0.09 6 0 0 352601 135 1 Haliborange 0.09 6 0 0 352601 136 1 Diegen 0.09 6 0 0 352601 137 1 Sanostol 0.09 6 0 0 352601 138 1 Vitamin C 0.09

6 0 0 93121 139 1Doctor's Consulting Fee 0.62

6 0 0 9312202 140 2Doctor's Consulting Fee 2.55

6 0 0 93123 141 2 Dental service 0.52 6 0 0 93199 142 1 Ultra sonogram test 0.26 6 0 0 93199 143 2 HB Test 0.52

0 0 93199 144 3 Chest X-Ray 0.52 7. Transport 5.98

7 0.3 0 64221 145 1 Taxi fare 0.89 7 0.1 0 4991101 146 1 Motorcycle 2.12 7 0.1 0 4992101 147 1 Bicycle 0.43 7 0.3 0 65111 148 1 Dhoani Fare 0.47 7 0.2 0 4299905 149 1 Bicycle Tyre 0.07 7 0.2 0 4299905 150 2 Motor Cycle Tyre 0.04 7 0.2 0 4299905 151 1 Cleaning of motorcycle 0.03 7 0.2 0 33310 152 1 Petrol 0.04 7 0.3 0 66110 153 1 International air-fare 1.13

19

0.3 0 66111 154 1 Domestic air-fare 0.76 8. Communication 7.86

7 0.1 0 6811 155 1 Postage of letter - Asia 0.02

7 0.1 0 6811 156 2Postage of letter- Europe 0.00

7 0.1 0 8411002 157 1 International Calls 0.70 7 0.1 0 8411002 158 1 Domestic 2.45 8 0.1 0 8411002 159 1 Internet Charges 0.35

0.1 0 8412001 160 1 Mobile Call Charges 3.06 9 0.1 0 4722002 162 1 Mobile set 1.27

9. Recreation, entertainment and cultural services 4.30

9 0.1 0 4721101 161 1 TV 0.39 9 0.1 0 4732102 163 1 CD player 0.15 9 0.4 0 9723002 164 1 Aerobics 0.14 9 0.5 0 32300 165 1 News Papers Local 0.09 9 0.5 0 32400 166 1 Magazine 0.06 9 0.2 0 47510 167 1 Recordable CD 0.02 9 0.2 0 47510 168 2 Blank video tape 0.02 9 0.4 0 73220 169 2 Film rental 0.15

9 0.4 0 83820 170 1Photography Processing Services 0.22

9 0.4 0 8411001 171 1 Cable TV charges 0.45

13 0.1 0 4523001 172 1 Computer 1.25 0.1 0 4732301 174 2 Audio Aldum- Cd 0.06

9 0.5 0 32230 175 1 Text books 0.47 9 0.5 0 32230 176 1 Text books 0.47 9 1 0 3260003 177 1 Monitor book 0.16 9 1 0 3692002 178 1 Colour box 0.04 9 1 0 3899304 179 1 Pen 0.16

10 1 0 3213702 180 1 Glaze paper 0.01 10. Education 3.10 10 0 0 92210 181 1 School fee 1.45 10 0 0 92230 182 1 Tuition fees 1.65 12. Personal care 6.15 12 0 0 97220 183 Cosmetic Treatment 0.05 12 0 0 97210 184 1 Hair Cut- Female 0.18 12 0 0 97210 185 2 Hair Cut-Men 0.18 12 0 0 3219303 186 1 Baby diapers 0.58 12 0 0 3219303 187 1 Towel 0.10 12 0 0 3219303 188 1 Sanitary Pads 0.29 12 0 0 3532101 189 1 Soap 0.00 12 0 0 3532101 190 2 Baby Soap 0.00 12 0 0 35323 191 1 Facial cream 0.47

20

21

12 0 0 35323 192 1 Baby Lotion 0.71 12 0 0 35323 193 2 Body Lotion 0.71 12 0 0 35323 194 1 Baby cologne 0.33 12 0 0 35323 195 2 Cologne 0.33 12 0 0 35323 196 1 Hair cream 0.33 12 0 0 35323 197 1 Hair oil 0.09 12 0 0 35323 198 1 Shampoo 0.80 12 0 0 35323 199 1 Tooth Paste 0.94 0 0 99999 200 1 Sun glass 0.05 13. Religion 0.22

9 0.3 0 95910 173 1Mauloodh Kiyevun Charge 0.22

Total weights 100.00 Source: Household Income and Expenditure Survey, 2002/2003 Note 1: The items shaded in yellow were included in the 1995 CPI basket. Some items in 1995 basket have been excluded from the 2004 basket. Note 2: Some items may have 0 weights; this is so due to decimal rounding. Note: HIES 2002/2003 was conducted in Male’ as well as other islands. Weights for the whole country as well as some sub regions have been calculated using HIES 2002/2003 data. A similar report comprising of island CPI will be made available in the coming months.

Appendix IV: Monthly CPI for Male’, 2005

Monthly Consumer Price Index, 2005 (June 2004=100) Major Groups Weights Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Male' 100.00 100.39

100.18

99.65

100.73

101.13

100.60

101.37

101.08

101.58

102.01

104.31

103.64

Food and Non-Alcoholic beverages 27.38 100.68

101.03

99.66

102.60

104.44

104.33

105.85

104.69

107.50

108.63

110.96

109.00

Fish 4.95 87.03

87.61

83.14

97.96

107.70

98.38

97.15

94.09

102.15

99.16

105.86

99.52

Other Food 20.16 104.03

104.37

103.62

103.95

103.97

106.15

108.50

107.79

109.64

111.83

113.32

112.17

Non-alcoholic beverages 2.27 100.69

100.69

100.49

100.67

101.49

101.07

101.26

100.28

100.21

100.91

101.19

101.51

Tobacco and Narcotics 1.91 100.42

100.93

102.39

101.89

102.69

101.87

102.78

103.82

105.44

105.76

107.54

108.04

Clothing and Footwear 5.01 104.44

101.80

104.93

105.28

105.28

104.29

104.87

105.30

103.14

103.07

102.53

104.38

Housing, Water, Electricity, gas and other fuels 25.15

102.35

101.84

102.08

102.17

102.17

101.41

100.66

100.74

100.84

101.33

109.45

108.39

Furnishing, Household Equipment and routine maintenance 5.83

99.31

99.46

106.15

108.04

107.28

104.91

105.34

105.32

102.97

102.37

102.94

104.68

Health 5.64 100.56

100.35

100.48

100.48

100.48

100.65

100.68

100.68

100.64

100.64

100.60

100.53

Transport 5.98 111.20

111.19

111.88

111.90

111.88

112.10

115.77

115.78

115.89

116.73

116.76

117.34

Communications 7.86 85.45

85.45

76.59

78.23

76.59

76.59

79.36

79.36

78.47

78.47

72.51

70.75

Recreation and Culture 4.30 96.44

96.40

92.14

92.19

93.70

91.09

91.05

90.97

90.46

86.88

86.55

86.46

Education 3.10 100.52

100.52

100.52

100.52

100.52

100.52

100.52

100.52

100.78

105.76

105.76

105.76

Hotels, café's and Restaurants 1.57 97.28

96.72

97.28

95.97

95.97

95.97

92.92

92.92

92.92

92.92

98.02

102.06

Miscellaneous goods and services 6.05 100.80

100.01

100.54

100.92

100.75

100.57

101.88

101.44

101.41

100.99

100.79

100.36

Religion 0.22 100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

100.00

22

Appendix V: Monthly Inflation Rates for Male’, 2005

Monthly Inflation rates, 2005 (June 2004=100) Major Groups Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

Male' (0.53)(0.20) (0.21) 1.08 0.40 (0.52) 0.76 (0.28) 0.49 0.42 2.26 (0.65)

Food and Non-Alcoholic beverages (0.83) 0.35 (1.36) 2.95 1.80 (0.11) 1.46 (1.10) 2.69 1.05 2.15 (1.77) Fish (4.08) 0.67 (5.10) 17.83 9.94 (8.66) (1.25) (3.15) 8.57 (2.93) 6.76 (5.99) Other Food (0.22) 0.33 (0.71) 0.32 0.02 2.10 2.21 (0.66) 1.71 2.00 1.33 (1.01) Non-alcoholic beverages (0.10) 0.00 (0.20) 0.18 0.82 (0.42) 0.19 (0.96) (0.07) 0.70 0.28 0.32Tobacco and Narcotics (1.29) 0.51 1.45 (0.49) 0.79 (0.80) 0.89 1.01 1.56 0.30 1.69 0.47Clothing and Footwear 2.97 (2.52) 3.07 0.33 (0.01) (0.94) 0.56 0.41 (2.05) (0.06) (0.53) 1.80

Housing, Water, Electricity, gas and other fuels 0.01 (0.49) 0.23 0.08 0.00 (0.74) (0.74) 0.07 0.10 0.49 8.01 (0.97) Furnishing, Household Equipment and routine maintenance (0.12) 0.15 6.73 1.78 (0.70) (2.21) 0.40 (0.01) (2.24) (0.58) 0.56 1.69Health 0.13(0.21) (0.21) 0.00 0.00 0.17 0.03 0.00 (0.03) 0.00 (0.04) (0.07) Transport 0.00 (0.01) 0.63 0.02 (0.02) 0.20 3.27 0.01 0.09 0.72 0.03 0.49Communications (0.50) 0.00 (10.37) 2.15 (2.10) 0.00 3.62 0.00 (1.13) 0.00 (7.60) (2.42) Recreation and Culture 0.22 (0.04) (4.42) 0.05 1.64 (2.79) (0.04) (0.09) (0.55) (3.96) (0.38) (0.11) Education 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.26 4.94 0.00 0.00Hotels, café's and Restaurants (1.62) (0.58) 0.58 (1.34) 0.00 0.00 (3.18) 0.00 0.00 0.00 5.49 4.12Miscellaneous goods and services (0.47) (0.78) 0.53 0.37 (0.17) (0.18) 1.30 (0.43) (0.04) (0.42) (0.20) (0.43) Religion 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

23

Appendix VI: Monthly CPI for Male’, 2006

Monthly Consumer Price Index, 2006 (June 2004=100)

Major Groups Weights Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Jan-dec 06

Average

Jan-dec 05

Average

Male' 100.00 101.68

102.53

103.44

103.48

103.58

104.03

103.55

103.71

105.93

105.17

105.59

106.42

104.09

101.39

Food and Non-Alcoholic beverages 27.38 104.24 104.08 107.66 108.61 108.43 110.52 108.14 107.55 113.56 110.56 110.81 113.75 108.99 104.95Fish 4.95 74.28 73.66 89.79 92.06 86.50 100.97 90.40 93.29 115.22 90.50 84.54 91.53 90.23 96.65Other Food 20.16 111.97 111.83 112.68 113.43 114.72 113.92 113.16 111.72 114.47 116.41 118.16 120.24 114.39 107.45Non-alcoholic beverages 2.27 100.94 101.60 102.05 101.95 100.33 101.16 102.22 101.61 101.90 102.34 102.80 104.58 101.96 100.87Tobacco and Narcotics 1.91 108.13 106.64 107.52 108.70 109.15 108.47 108.60 108.21 108.08 108.31 108.41 109.76 108.33 103.63Clothing and Footwear 5.01 102.77 106.47 106.66 106.61 105.17 103.88 102.17 102.21 102.85 106.47 106.13 105.14 104.71 104.11Housing, Water, Electricity, gas and other fuels 25.15 105.29 104.86 104.93 104.96 104.96 104.97 105.62 106.03 106.38 105.93 106.39 106.42 105.56 102.78Furnishing, Household Equipment and routine maintenance 5.83 105.16 106.80 105.15 104.28 106.81 107.48 106.99 105.26 103.74 108.54 110.36 114.45 107.09 104.06Health 5.64 99.08 112.12 111.94 111.94 112.24 112.39 112.26 112.34 116.86 116.76 116.96 116.56 112.62 100.56Transport 5.98 119.65 120.09 119.65 116.91 116.96 119.32 120.13 120.38 121.16 121.32 121.31 121.25 119.84 114.04Communications 7.86 71.75 71.75 71.75 72.53 72.53 70.57 70.57 70.57 70.57 67.74 69.66 67.50 70.63 78.15Recreation and Culture 4.3 86.91 87.64 86.81 86.72 86.57 84.83 84.79 91.89 93.84 92.89 90.55 89.84 88.61 91.19Education 3.1 105.76 105.27 105.27 105.27 105.27 105.27 107.69 107.69 110.12 107.69 107.69 107.69 106.72 101.85Hotels, café's and Restaurants 1.57 101.01 102.92 103.42 100.56 100.06 100.06 100.06 100.06 100.06 105.58 105.58 105.58 102.08 95.91 Miscellaneous goods and services 6.05 100.92 100.06 100.75 99.93 100.95 100.91 100.95 100.89 102.37 101.67 103.08 103.57 101.34 100.87Religion 0.22 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00 100.00

24

Appendix VII: Monthly Inflation Rates for Male’, 2006

Monthly Inflation rates, 2006 (June 2004=100)

Major Groups Jan Feb Mar Apr May June July Aug Sep Oct Nov Dec

chn % 2005-2006

Male' 0.88-1.89 0.84 0.04 0.10 0.44 -0.47 0.15 2.14 -0.72 0.40 0.79 2.67

Food and Non-Alcoholic beverages -4.36 -0.15 3.44 0.88 -0.17 1.93 -2.16 -0.54 5.59 -2.65 0.23 2.66 3.85Fish -25.36 -0.83 21.89 2.53 -6.04 16.72 -10.47 3.19 23.51 -21.45 -6.58 8.27 -6.64 Other Food -0.18 -0.13 0.76 0.66 1.14 -0.69 -0.67 -1.27 2.46 1.69 1.50 1.76 6.47Non-alcoholic beverages -0.56 0.65 0.44 -0.10 -1.58 0.82 1.05 -0.59 0.28 0.43 0.45 1.73 1.08Tobacco and Narcotics -1.37 0.08 0.83 1.09 0.42 -0.62 0.11 -0.36 -0.12 0.21 0.09 1.25 4.54Clothing and Footwear -1.54 3.60 0.17 -0.04 -1.35 -1.23 -1.65 0.04 0.62 3.53 -0.32 -0.93 0.58

Housing, Water, Electricity, gas and other fuels -2.86 -0.41 0.07 0.03 0.00 0.00 0.62 0.39 0.33 -0.42 0.43 0.03 2.70Furnishing, Household Equipment and routine maintenance 0.45 1.57 -1.54 -0.83 2.42 0.63 -0.46 -1.61 -1.45 4.63 1.67 3.71 2.90Health -0.16 -1.44 13.15 0.00 0.27 0.13 -0.11 0.07 4.03 -0.08 0.17 -0.34 11.99 Transport -0.361.97 -2.290.36 0.04 2.01 0.68 0.21 0.64 0.13 0.00 -0.05 5.09 Communications 1.41 0.00 0.00 1.08 0.00 -2.69 0.00 0.00 0.00 -4.02 2.84 -3.11 -9.63Recreation and Culture 0.52 0.84 -0.95 -0.10 -0.18 -2.01 -0.05 8.38 2.12 -1.01 -2.52 -0.79 -2.84Education 0.00 -0.46 0.00 0.00 0.00 0.00 2.30 0.00 2.25 -2.20 0.00 0.00 4.79Hotels, café's and Restaurants -1.02 1.89 0.49 -2.77 -0.50 0.00 0.00 0.00 0.00 5.52 0.00 0.00 6.43Miscellaneous goods and services 0.56 -0.86 0.69 -0.82 1.02 -0.04 0.04 -0.06 1.47 -0.69 1.39 0.47 0.46Religion 0.000.00 0.000.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00 0.00

Appendix VIII: Linked CPI series with June 2004=100 as Base

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecAnnual Index

inflation rate

1985 35.88 32.76 34.19 31.52 32.54 34.76 32.97 34.43 37.84 36.88 33.52 34.08 34.281986 35.97 36.61 40.79 38.13 35.91 34.94 36.44 36.38 43.33 39.1 39.1 34.66 37.61 9.7 1987 42.54 42.77 38.61 40.78 37.94 37.78 37.03 37.94 42.64 44.62 50.5 42.03 41.26 9.7 1988 40.39 42.3 46.74 45.53 41.55 41.98 43.5 47.07 45.16 43.11 43.34 46.48 43.93 6.5 1989 46.83 46.56 47.14 46.62 46.66 46.85 46.1 45.72 45.79 49.57 49.58 47.5 47.08 7.2 1990 47.37 44.57 47.14 51.9 46.56 46.56 51.8 45.96 46.99 54.87 51.23 50.59 48.8 3.6 1991 50.15 54.39 56.2 55.43 57.89 60.15 58.79 53.84 55.44 54.95 58.22 56.25 55.97 14.7 1992 68.85 60.79 63.19 60.96 65.81 78.04 71.17 65.52 59.88 66.59 60.84 63.31 65.41 16.9 1993 82.82 81.24 76.23 82.25 84.25 85.31 73.36 73.23 78.76 74.57 74.8 76.1 78.58 20.1 1994 79.72 81.14 82.56 79.11 83.09 79.54 77.73 79.94 77.14 77.48 78.53 98.85 81.24 3.4 1995 84.41 92.18 87.01 87.7 76.08 85.73 85.11 87.3 86.1 85.45 84.89 86.37 85.69 5.5 1996 88.96 91.19 87.34 91.78 88.73 91.62 91.27 91.7 92 92.08 92.51 93.34 91.04 6.2 1997 103.49 97.01 97.02 94.96 99.13 90.51 98.42 95.53 97.05 100 96.88 105.24 97.94 7.6 1998 98.47 103.24 94.3 96.95 92.81 95.52 98.38 95.27 96.21 94.77 97.42 95.41 96.56 -1.4 1999 97.56 97.34 100.54 107.59 101.89 97.39 97.29 97.7 95.61 104.15 97.35 98.56 99.41 3.0 2000 95.09 94.54 95.71 101.53 104.37 105.65 99.07 99.04 96.8 97.82 93.5 95.84 98.25 -1.2 2001 94.14 96.2 95.56 97.58 100.27 103.79 97.87 97.93 100.26 100.18 100.66 102.46 98.91 0.7 2002 104.72 104.1 103.28 100.97 103.83 103.99 103.88 103.08 101.04 102.61 102.47 102.51 103.04 4.2 2003 101.91 101.16 101.66 100.82 102.89 102.55 102.85 102.53 101.6 103.19 100.13 99.61 101.74 -1.3 2004 99.59 99.44 99.41 99.9 101.98 100 99.82 99.41 99.16 101.11 100.2 100.6 100.05 -1.7 2005 100.39 100.18 99.65 100.73 101.13 100.6 101.37 101.08 101.58 102.01 104.31 103.64 101.39 1.3

2006 101.68

102.53

103.44

103.48

103.58

104.03

103.55

103.71

105.93

105.17

105.59

106.42 104.09 2.7

26

Appendix IX: Figures Figure 2: Inflation rates by major categories, 2006

(15.00)

(10.00)

(5.00)

0.00

5.00

10.00

15.00Fo

od &

Non

-Alc

ohol

ic b

ev.

Fish

Toba

cco

& N

arco

tics

Clo

thin

g an

d Fo

otw

ear

Hou

sing

, Wat

er, E

lect

ricity

, gas

&ot

her f

uels

Furn

ishi

ng, H

ouse

hold

Equ

ip. &

rout

ine

mai

nt.

Hea

lth

Tran

spor

t & c

omm

unic

atio

n

Tran

spor

t

Com

mun

icat

ions

Rec

reat

ion

and

Cul

ture

Educ

atio

n

Hot

els,

caf

é's

and

Res

taur

ants

Mis

cella

neou

d go

ods

and

serv

ices

Rel

igio

n

2004based

1995based

27

Figure 3: Monthly Inflation Rates, 2006

-8.00

-6.00

-4.00

-2.00

0.00

2.00

4.00

6.00

8.00

10.00

1 2 3 4 5 6 7 8 9 10 11 12

CPI 1995 based

CPI 2004 based

28