PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

1. PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA Nadiezda Alejeva Head, Price Statistics Division Statistics Lithuania PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

2. PRICE COLLECTION PROCEDURE ANDITS DEVELOPMENT IN LITHUANIA • ORGANISATION OF WORK • PRICE COLLECTION PROCEDURE • INTRODUCTION OF HAND-HELD COMPUTERS • REORGANISATION OF THE PRICE DATA COLLECTION PROCEDURE • THE ASSURANCE OF DATA QUALITY PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

3. ORGANISATION OF WORK • THE CENTRAL STATISTICAL OFFICE CARRIES OUT THE PRODUCTION OF BOTH THE NATIONAL CPI AND THE HICP • BOTH THE LOCAL AND THE CENTRAL STAFF HAVE BEEN INVOLVED IN THE PRODUCTION PROCESS • 10 CENTRAL STAFF MEMBERS WORKING ON THE CPI AND HICP • 31 LOCAL STAFF MEMBERS – PRICE COLLECTORS – IN 5 REGIONAL STATISTICAL OFFICES CARRY OUT PRICE COLLECTION PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

4. ORGANISATION OF WORK • RESPONSIBILITIES OF THE CENTRAL STAFF • YEARLY WORKS OUT THE TIMETABLE FOR THE COLLECTION AND TRANSMISSION OF THE PRIMARY DATA ON PRICES FOR PRICE COLLECTORS • PREPARES AND ANNUALLY CARIES OUT REVIEW AND UPDATE OF THE ‘BASKET’ OF REPRESENTATIVE GOODS AND SERVICES • IS PARTIALLY INVOLVED IN THE PRICE COLLECTION PROCESS • CARRIES OUT THE SECONDARY VERIFICATION OF THE PRIMARY DATA RECEIVED FROM PRICE COLLECTORS • CARRIES OUT THE APPROPRIATE ADJUSTMENTS AND IMPUTATIONS IN CASES OF CHANGES IN QUALITY AND MISSING PRICES • PREPARES THE WEIGHTINGS SYSTEM AND PERFORMS THE CALCULATION OF THE CPI AND THE HICP • PREPARES PRESS RELEASES, PUBLICATIONS, OTHER STATISTICAL INFORMATION • ELABORATES METHODOLOGICAL DOCUMENTS • ORGANISES TRAINING OF THE LOCAL STAFF AND INSPECTION OF THEIR WORK PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

5. ORGANISATION OF WORK • RESPONSIBILITIES OF THE LOCAL STAFF – PRICE COLLECTORS • TO SELECT THE OUTLETS WHERE PRICES OF CONSUMER GOODS AND SERVICES WILL BE COLLECTED • TO SELECT SPECIFIC VARIETIES OF REPRESENTATIVE PRODUCTS WITHIN AGREED DEFINITIONS IN THE OUTLETS • TO REGISTER PRICES THROUGH MONTHLY VISITS TO SELECTED OUTLETS • TO EXPLORE THE REASONS OF SIGNIFICANT CHANGES IN PRICES • TO EVALUATE THE PRICE CHANGE DUE TO THE QUALITY CHANGE • TO SEND THE DATA AND INFORMATION ON THE DETAILS ON CHANGES IN CHARACTERISTICS OF GOODS AND SERVICES TO THE CENTRAL STATISTICAL OFFICE • TO FOLLOW THE MARKET DEVELOPMENT PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

6. PRICE COLLECTION PROCEDURE • THERE ARE TWO APPROACHES TOWARDS PRICE COLLECTION • PRICE COLLECTION BY THE CENTRAL STAFF (1608 PRICE QUOTATIONS (3 %) OF 27 PRODUCTS (3 %)) • FOR GOODS THAT ARE TECHNICALLY COMPLICATED • FOR GOODS AND SERVICES FOR WHICH SPECIAL SUB-INDICES ARE CALCULATED • PRICES ADMINISTRATED BY THE CENTRAL GOVERNMENT OR THE NATIONAL REGULATOR • PRICES THAT ARE THE SAME ACROSS THE ENTIRE COUNTRY • PRICE COLLECTION BY PRICE COLLECTORS AT THE LOCAL LEVEL (59268 PRICE QUOTATIONS (97 %) OF 810 PRODUCTS (97 %)) • MARKET PRICES OF CONSUMER GOODS AND SERVICES • PRICES ADMINISTRATED BY THE LOCAL GOVERNMENT PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

7. PRICE COLLECTION PROCEDURE • PRICE DATA SOURCES AND COLLECTION TECHNIQUES • PRICE DATA SOURCES • REGISTRATION OF PRICES CARRIED OUT BY PRICE COLLECTORS THROUGH VISITING THE SELECTED OUTLETS • LEGAL ACTS: GOVERNMENT DECREES, REGULATIONS AND ORDERS, DECISIONS OF THE NATIONAL REGULATOR, ETC. • INTERNET • CATALOGUES, PRICE LISTS AND ADVERTISEMENTS • DATA COLLECTION TECHNIQUES • HAND-HELD COMPUTER • INTERNET • TELEPHONE INQUIRIES • ELECTRONIC QUESTIONNAIRE AND PAPER REPORT • PAPER QUESTIONNAIRE PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

8. INTRODUCTION OF HAND-HELD COMPUTERS • SINCE OCTOBER 2006, A NEW TOOL – A HAND-HELD COMPUTER – HAS BEEN USED FOR PRICE COLLECTION • A PHASED APPROACH TO THE INTRODUCTION OF THE NEW TOOL IN THE PRICE COLLECTION PROCESS • TWO TRAINING SESSIONS FOR PRICE COLLECTORS • THREE PILOT SURVEYS • A SPECIAL QUESTIONNAIRE AFTER EACH PILOT PRICE SURVEY TO GET FEEDBACK FROM PRICE COLLECTORS • IMPROVEMENT OF COMPUTER SOFTWARE AND ORGANISATION OF A CONSUMER PRICE SURVEY • REGULAR MEETINGS WITH PRICE COLLECTORS AND PRACTICAL ASSISTANCE IN THE FIELDWORK PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

9. INTRODUCTION OF HAND-HELD COMPUTERS • ADVANTAGES OF USING HAND-HELD COMPUTERS • MANUAL TASKS HAVE BEEN REDUCED • ERRORS OF TRANSCRIPTION OF THE DATA FROM A PAPER QUESTIONNAIRE INTO A PERSONAL COMPUTER HAVE BEEN ELIMINATED • INTERACTIVE DATA VALIDATION • INCREASED MOBILITY AND FLEXIBILITY FOR PRICE COLLECTORS • REDUCTION IN PAPER AND PRINTING COSTS • PRICE COLLECTORS PRESENT A BETTER IMAGE TO THE PUBLIC AND RETAILERS PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

10. INTRODUCTION OF HAND-HELD COMPUTERS • FUNCTIONS PROGRAMMED INTO HAND-HELD COMPUTER’S SOFTWARE • ORGANISATION OF CONVENIENT ROUTE AND TIMETABLE OF THE PRICE COLLECTION FOR THE PRICE COLLECTOR • CREATION OF A SEPARATE TEMPLATE FOR EACH OUTLET • EXECUTION OF THE QUALITY CHECKS OF INITIAL DATA SHOWING THE WARNING MESSAGES WHILE COLLECTING AND ENTERING PRICE DATA • SORTING OF SELECTED GOODS AND SERVICES • RECALCULATION OF THE PRICE OF THE MEASUREMENT UNIT OBSERVED INTO THE PRICE OF THE MEASUREMENT UNIT REQUIRED • USE OF DIFFERENT CLASSIFICATIONS WHILE COLLECTING PRICES AND ENTERING PRODUCT’S DESCRIPTION • PROTECTION FROM MISSING OR DUPLICATION OF THE PRODUCT OR OUTLET • USE OF CODES FOR THE IDENTIFICATION OF A PRODUCT OR OUTLET • DISPLAY OF HISTORY OF PRICES FOR EACH PRODUCT • TRANSMISSION OF THE ENTERED PRICE DATA TO THE CENTRAL DATABASE • INFORMATION ON OUTLETS, PRODUCTS SELECTED FOR THE PRICE SURVEY, VISITS TO OUTLETS PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

11. INTRODUCTION OF HAND-HELD COMPUTERS • ‘M-PARTNER’ SYSTEM CREATES A POSSIBILITY OF BETTER VERIFICATION OF THE PRIMARY PRICE DATA IN THE CENTRAL STATISTICAL OFFICE • TO GROUP THE OUTLETS ACCORDING TO THE ROUTES OF PRICE COLLECTION • TO CREATE REPORTS CONTAINING DIFFERENT INFORMATION • TO TRANSFORM TABLES TO MICROSOFT EXCEL FORMAT FOR FURTHER ANALYSIS • TO CONTROL PRICE COLLECTORS’ VISITS TO THE OUTLETS • TO ESTIMATE THE WORKLOAD OF PRICE COLLECTORS • TO SORT AND FILTER THE DATA PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

12. INTRODUCTION OF HAND-HELD COMPUTERS • DISADVANTAGES OF USING HAND-HELD COMPUTERS • IT IS NOT EASY TO READ UNDER DIFFERENT CONDITIONS OF LIGHTING • INSUFFICIENT BATTERY LIFE • TOO SMALL SCREEN • SMALL KEYBOARD • CAPACITY IS LIMITED • REPLACEABILITY PROBLEM IN CASE OF ILLNESS OR HOLIDAY OF THE PRICE COLLECTOR • FAST OBSOLESCENCE OF HAND-HELD COMPUTER MODEL • RISK OF THEFT OR DAMAGE • COSTS OF PURCHASING AND MAINTENANCE HAND-HELD COMPUTERS, DEVELOPING TAILOR-MADE SOFTWARE, TRAINING OF PRICE COLLECTORS PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

13. REORGANISATION OF THE PRICE DATA COLLECTION PROCEDURE • A NECESSITY TO IMPLEMENT THE PROVISIONS OF COUNCIL REGULATION (EC) NO 701/2006 OF 25 APRIL 2006 AS REGARDS THE TEMPORAL COVERAGE OF PRICE COLLECTION IN THE HICP • PRICE COLLECTION HAS TO TAKE PLACE ACROSS AT LEAST ONE WORKING WEEK PERIOD AT, OR NEAR, THE MIDDLE OF THE CALENDAR MONTH TO WHICH THE INDEX PERTAINS • WHERE PRODUCTS ARE KNOWN TO TYPICALLY SHOW SHARP AND IRREGULAR PRICE CHANGES WITHIN THE SAME MONTH, PRICE COLLECTION HAS TO TAKE PLACE OVER A PERIOD OF MORE THAN ONE WORKING WEEK • THIS RULE HAS TO BE APPLIED IN PARTICULAR TO THE FOLLOWING PRODUCTS: ENERGY PRODUCTS FRESH FOOD, SUCH AS FRUIT AND VEGETABLES PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

14. REORGANISATION OF THE PRICE DATA COLLECTION PROCEDURE • SINCE DECEMBER 2007, THE NEW PRICE COLLECTION PROCEDURE HAS BEEN ESTABLISHED • THE TIMETABLE OF THE PRICE DATA COLLECTION IN SELECTED OUTLETS IS SCHEDULED SEPARATELY FOR EACH TERRITORIAL UNIT • FIXED DAYS FOR THE PRICE COLLECTION PER EACH OUTLET ARE SET IN THE TIMETABLES • COLLECTION OF THE PRICE DATA COVERS FIRST THREE WORKING WEEKS OF THE MONTH • A SAMPLE OF OUTLETS IS EVENLY DISTRIBUTED OVER THREE WEEKS • THE PRICE COLLECTOR SPREADS OUTLETS OVER THE DAYS OF THE WEEK AND AGREES WITH THE CENTRAL STAFF • ONE-THIRD OF ALL PRICE QUOTATIONS IS COLLECTED EACH FIVE DAYS • PRICES OF FUELS AND SEASONAL FOOD PRODUCTS ARE COLLECTED ADDITIONALLY DURING THE 15TH –19TH WORKING DAYS OF THE MONTH PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

15. TIMETABLE OF THE NEW PRICE COLLECTION PROCEDURE Main price collection Additional price collection for fuels and seasonal food-products PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

16. REORGANISATION OF THE PRICE DATA COLLECTION PROCEDURE • ADVANTAGES OF THE NEW PRICE DATA COLLECTION PROCEDURE • OUTLETS ARE VISITED ONCE A MONTH • PRICES OF ALL REPRESENTATIVE PRODUCT’S VARIETIES, SELECTED IN A PARTICULAR OUTLET, ARE COLLECTED DURING THE VISIT • THE OUTLETS AND TIME FOR THE PRICE COLLECTION ARE DISTRIBUTED EVENLY • CONVENIENTLY ORGANIZED PRICE COLLECTION ROUTES • PRICE COLLECTORS TRANSMIT THE DATA TO THE CENTRAL DATABASE ON THE DAY WHEN THE DATA COLLECTION TAKES PLACE • MORE FREQUENT PROVISION OF THE PRICE DATA TO THE CENTRAL STATISTICAL OFFICE ENABLES THE CENTRAL STAFF TO START THE PRELIMINARY ANALYSIS OF THE DATA AFTER THE FIRST OBSERVATION WEEK • THE CENTRAL STAFF HAS MORE TIME FOR THE DATA VERIFICATION AND EDITING • IT IS VISIBLE THAT THE USE OF THE WORKING TIME BY PRICE COLLECTORS AS WELL AS THE QUALITY OF THE PRICE DATA WILL BE IMPROVED PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

17. THE ASSURANCE OF DATA QUALITY • THE QUALITY OF PRICE DATA IS THE CRUCIAL DETERMINANT ENSURING THE ACCURACY AND RELIABILITY OF THE CPI AND THE HICP • PRICE COLLECTORS PLAY THE KEY ROLE IN THE DATA COLLECTION PROCESS • IN ORDER TO ENSURE THE ADEQUATE QUALITY OF PRICE DATA, THE EXPERIENCE AS WELL AS SOME CERTAIN FEATURES OF PRICE COLLECTORS ARE NEEDED • PRICE COLLECTORS ARE REQUIRED TO HAVE A COMPREHENSIVE KNOWLEDGE OF THE DATA COLLECTION PROCESS, TO BE COMPUTER LITERATE • IT IS VERY IMPORTANT TO HAVE QUALIFIED AND WELL-TRAINED PRICE COLLECTORS PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

18. THE ASSURANCE OF DATA QUALITY • CONSIDERABLE ATTENTION IS GIVEN TO PRICE COLLECTORS’ TRAINING • TWO- OR THREE-DAY MEETINGS HAVE BEEN ORGANIZED FOR PRICE COLLECTORS YEARLY SINCE 2000 • A PROGRAMME HAS BEEN DESIGNED TAKING INTO ACCOUNT PRICE COLLECTORS’ WISHES AND QUESTIONS OF THE DAY • PRICE COLLECTORS ARE INSTRUCTED ON: • THE REQUIREMENTS POSED FOR THE PRIMARY DATA OF PRICES • THE TECHNIQUES THAT CAN BE USED FOR THE REGISTRATION OF PRICES • THE SELECTION AND REPLACEMENT OF OUTLETS AND VARIETIES OF PRODUCTS • AN UPDATED LIST OF REPRESENTATIVE PRODUCTS • COMMON AND FREQUENTLY OCCURRING MISTAKES • CERTAIN SPECIAL SUBJECTS ARE CHOSEN AND EXPERTS ARE INVITED TO ASSIST AND TO EXPLAIN THE CHOSEN SUBJECT THOROUGHLY • A SPECIAL TOPIC ON THE USE OF HAND-HELD COMPUTER HAS BEEN INCLUDED IN THE PROGRAMME OF THE MEETING PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

19. THE ASSURANCE OF DATA QUALITY • OTHER FORMS OF TRAINING OF PRICE COLLECTORS • EVERY YEAR – A ONE-DAY ZONAL SEMINAR IN ONE OF THE FIVE REGIONAL STATISTICAL OFFICES • EVERY QUARTER – A SHORT TECHNICAL ASSISTANCE MISSION OF THE CENTRAL STAFF TO ONE TERRITORIAL UNIT • A MANUAL FOR PRICE COLLECTORS HAS BEEN PREPARED; THE MANUAL PROVIDES PRICE COLLECTORS WITH REQUIREMENTS AND RECOMMENDATIONS AS REGARDS THE PRICE COLLECTION PROCEDURE • PRICE COLLECTORS ARE EQUIPPED WITH AN ‘M-PATNER’ SYSTEM USERS MANUAL • PRICE COLLECTORS AND THE CENTRAL STAFF COMMUNICATE BY TELEPHONE AND EMAIL ON DIFFERENT ISSUES PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

20. THE ASSURANCE OF DATA QUALITY • CHECKS AGAINST ERRORS AND MISTAKES • SOME CHECKING FUNCTIONS HAVE BEEN INSTALLED IN THE HAND-HELD COMPUTER SOFTWARE • PRICE COLLECTORS HAVE ACCESS TO THE CENTRAL DATABASE AND CAN CHECK THE TRANSMITTED DATA • THE CENTRAL STAFF CARRIES OUT THE VERIFICATION OF THE DATA RECEIVED USING THE DATA CONTROL SOFTWARE • PARTICULAR ATTENTION IS PAID TO QUALITY CHANGES AND PRICES THAT DO NOT CHANGE FOR A VERY LONG TIME • THE PRELIMINARY INDEX RESULTS OF THE NATIONAL CPI AND HICP ARE DISCUSSED, CROSSCHECKED AGAINST THE PRODUCER PRICE INDEX AND INFORMATION RECEIVED FROM OTHER INSTITUTIONS PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA

21. THE ASSURANCE OF DATA QUALITY • FURTHER MEASURES FOR THE IMPROVEMENT OF PRICE DATA QUALITY • IT IS FORESEEN TO DESIGN AND IMPLEMENT NEW SOFTWARE TO BETTER MANAGE THE ANALYSIS OF THE PRIMARY DATA AT THE CENTRAL LEVEL DURING THE 2008–2012 STRATEGIC PERIOD • ACQUISITION OF NEW HAND-HELD COMPUTERS FOR THE PRICE COLLECTION • FURTHER OPTIMISATION WORK AS REGARDS THE NUMBER OF PRICES REQUIRED WITHIN EACH ELEMENTARY AGGREGATE • CONSIDERATION OF THE POTENTIAL BENEFIT OF THE USE OF ‘SCANNER DATA’ FROM SUPERMARKETS PRICE COLLECTION PROCEDURE AND ITS DEVELOPMENT IN LITHUANIA