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Central Bureau of Statistics, Israel

This study explores how Israel has improved its production processes for CPI and PPP by enhancing synergies between the two. It discusses the former work process, problems encountered, and the strategies implemented to enhance synergies. The study also highlights the future work and the use of new technologies in data collection.

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Central Bureau of Statistics, Israel

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  1. Synergies in the production processes of CPI and PPP Central Bureau of Statistics, Israel Merav Yiftach,Yoel FinkelUNECE/ILO, meeting of Consumer Price Indices, Geneva, 8-9 May, 2008.

  2. Synergies in the production processes of CPI and PPP • Introduction: Israel’s participation in ICP • What the former work process looked like • Improved the PPP process by Enhancing the synergies between CPI and PPP • Summary and future work

  3. Participation countries Eurostat - OECD PPP Programme

  4. The former work process • The database is received from OECD and sent to the price coordinator • A weekly timetable for price collection is defined • Data collection include: prices, date of collection, details of outlets and problems in the process • An editing and logical check process is applied • The PPP coordinator sends the edited data to OECD • The data are sent back from OECD to the PPP coordinator for questions and clarifications • Additional checks are conducted in the field.

  5. Problems in the work process • Refusal to cooperate • Definition discrepancies – some goods may be irrelevant or non-existent in the local market • Judgmental sampling - the sampling frame problem for a CPI is even more complicated for PPP • Sales • Seasonality • No Synergies with the CPI • No automatic System for classification, data collection and editing.

  6. Enhancing the synergies between CPI and PPP Price collection The synergies between CPI and PPP divided to 3 parts: • Price collection • Methodology • Technology

  7. Enhancing the synergies between CPI and PPP Price collection • Using prices directly from the CPI: • Utilities: electricity, gas, water • Telecommunications services • Public transportation • Insurances • Recreation • Other services

  8. Enhancing the synergies between CPI and PPP Price collection 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.

  9. Prices collected for PPP in CPI framework ICP 2005 round

  10. Enhancing the synergies between CPI and PPP Combining price methodology of CPI and PPP in the field work • Sampling procedures for CPI have been expended to allow for inclusion of PPP • 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.

  11. Enhancing the synergies between CPI and PPP Similar technological principles for PPP • A system which automatically classify PPP and CPI into identical category was developed. CPI basket is updated every two year and the system accordingly • An initiation document for developing a total PPP system within the framework of CPI is now in process.

  12. Data collection - new work process Receive survey by mail according to OECD timetable Identify and mark the items in the CPI system 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 The PPP coordinator sends the edited data to OECD Editing and logical checks Integrate prices with CPI and compute averages For PPP Receive preliminary results for statistical editing Additional checks in the field and in the CPI system

  13. Future work • Computerize data collection – HPC • Computerize the other stages of process • Take advantage of the present CPI technology

  14. Data collection with HPC -list of items

  15. Data collection with HPC -Specification description

  16. Data collection with HPC -price collection

  17. Observation Controlling system for editing and logical check

  18. Data collection - new work process Receive survey by mail according to OECD timetable Identify and mark the items in the CPI system 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 Will computerized Will computerized computerized The PPP coordinator sends the edited data to OECD Editing and logical checks Integrate prices with CPI and compute averages For PPP Will computerized Will computerized Receive preliminary results for statistical editing Additional checks in the field and in the CPI system

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