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Group: Forum Members
Last Login: 03 September 2008
Posts: 26, Visits: 30 |
| | Can someone please tell me what the Guernsey RPI is and whats included in the calculation please ? |
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Group: Forum Members
Last Login: 05 August 2008
Posts: 33, Visits: 39 |
| Simon, these links are probably of use. see excerpt from PDF 'handout':
web: www.gov.gg/pru
You'll need this PDF
http://www.gov.gg/ccm/cms-service/download/asset/?asset_id=6363035
Methodology
Further Information
Please contact Helen Walton (Research & Information Analyst) for further information.
Policy and Research Unit
Sir Charles Frossard House
La Charroterie
St Peter Port
Guernsey
GY1 1FH
Tel: (01481) 717240
Fax: (01481) 717157
e-mail: policy.research@gov.gg
How is the RPI calculated?
Th e calculation of the GRPI is based on the price change of items within a ‘shopping basket’. Whilst a single household’s
shopping basket may contain anywhere in the region of one to several hundred items, the ‘basket’ of goods and services
used in the calculation of the GRPI contains over 2,000 items. Th is list of goods and services remains the same every
quarter in order to measure price changes over time.
Every household in the Island spends its income in diff erent ways so it is impractical to monitor changes in the price
of every single item on sale. Th erefore, the Index contains a representation of what ‘typical’ consumers in a Guernsey
household spend their money on. It should not be confused with a ‘cost of living’ index, which will vary according to
individual expenditure.
Which items are included?
All goods and services on which a household typically spends money make up the GRPI. Th e shopping basket stretches
from the inexpensive, such as the cost of a loaf of bread to expensive items such as the cost of new car.
Prices are collected quarterly from over 250 local suppliers, businesses and internet shopping sites and in order to
maintain consistency, they are collected from the same establishment each quarter.
Are all items equally represented?
Th e average person spends more of their budget on some items and less on others. Th erefore the GRPI is weighted, which
means that some items have a higher importance or ‘weight’ than others. An increase in certain items will have more of an
impact on the GRPI than others, for example, an increase in the price of petrol will have more eff ect on the Index than an
increase in the price of milk.
How is it kept up to date?
Th e shopping basket is updated by means of a Household Expenditure Survey (HES), which takes place approximately
every fi ve to six years. Th e main purpose of the HES is to establish the proportion of expenditure spent on particular
items in an average household budget. Th e ‘shopping basket’ is then revised according to the results of the survey. A new
HES was undertaken in 2005/6 and the revised set of items and weights are expected to be introduced in 2008.
What is RPIX?
RPIX is simply RPI excluding mortgage interest payments. It is sometimes referred to as the “underlying” rate of infl ation.
Some jurisdictions use RPIX to set infl ation targets as it does not refl ect the direct impact of interest rate changes made to
control infl ation. |
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