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Consumer Price Index

0. Prerequisites
0.1 Legal environment 0.1.1 Responsibility for collecting, processing, and disseminating statistics

State Statistical Committee of the Republic of Azerbaijan
According to the Law of the Republic of Azerbaijan “On Official Statistics” the State Statistical Committee (SSC) independently produces and disseminates data
The Statute on the State Statistical Committee of the Republic of Azerbaijan establishes the SSC as the main organization responsible for producing official statistics.
Article 6 of the Law of the Republic of Azerbaijan “On Official Statistics” holds the SSC responsible for:
(i) disseminating statistical information of broad interest to the public;
(ii) guaranteeing the reliability and objectivity of statistical information; and
(iii) assuring the accuracy, quality, and timeliness of the data produced.

0.1.3 Confidentiality of individual reporters' data

State Statistical Committee of the Republic of Azerbaijan
Article 16 of the Law “On Official Statistics” guarantees the confidentiality of the data reported to the SSC. Survey forms clearly state that reported data are subject to confidentiality under the Law.

0.1.4 Ensuring statistical reporting

State Statistical Committee of the Republic of Azerbaijan Article 6 and 11 of the Law “On Official Statistics” guarantees the SSC's access to administrative records and other data produced by legal entities, including the data produced by government ministries; it also empowers the SSC to obtain data from registered economic units and households, including commercially confidential data.
0.2 Resources 0.2.1 Staff, facilities, computing resources, and financing

There are 16 employees in the Department of Price Statistics. Each employee has PC. A fund to support the state statistical bodies is allocated in the state budget.
1. Integrity
1.1 Professionalism 1.1.2 Selection of sources, methodology, and modes of dissemination

State Statistical Committee of the Republic of Azerbaijan
Article 10 of the Law “On Official Statistics” provides the statutory basis for independently selecting sources and methods required to produce and disseminate data.
1.2 Transparency 1.2.1 Disclosure of terms and conditions for statistical collection, processing, and dissemination

State Statistical Committee of the Republic of Azerbaijan
The Law of the Republic of Azerbaijan “On Official Statistics” is available in English on the following SSC webpage: https://www.stat.gov.az/menu/3/Legislation/law_az_en.pdf

1.2.2 Internal governmental access to statistics prior to release

State Statistical Committee of the Republic of Azerbaijan

No data produced and disseminated by the SSC are provided to government officials before being disseminated to the public. Data are disclosed to all users at the same time.

1.2.3 Attribution of statistical products

State Statistical Committee of the Republic of Azerbaijan
No government officials make commentary to the SSC data. All SSC releases clearly indicate the SSC as the data source. The SSC usually presents its own technical commentary on the data as part of the release. All other government officials disseminating statistical data should observe the Law “On Official Statistics”.

1.2.4 Advance notice of major changes in methodology, source data, and statistical techniques.

State Statistical Committee of the Republic of Azerbaijan
The SSC provides advance notice in the cases of major methodological changes or changes to the data sources. Information about minor methodological or data sources changes are, as a rule, provided in the footnotes to the official publications.
2. Methodology
2.1 Concepts and definitions 2.1.1 Concepts and definitions

Definition: CPI is a relative indicator characterizing the overall change in the value of the purchased buyer's purchased goods and the amount of the service purchased.
2.2 Scope 2.2.1 Scope
• Scope of the data

Population coverage: Consumption costs of the population used to calculate the Consumer Price Index cover all private households except for foreigners and stateless persons living in Azerbaijan.

Geographical coverage: Price observation is conducted in 58 cities (regions) of the country, so the index covers all territory of the Republic of Azerbaijan.

Item coverage: The CPI calculation is based on prices of 528 products and services (food - 151, non-food - 274 and services - 103)

Exceptions to coverage

Goods (services): Conventionally calculated rent for owner-occupied housing
2.3 Classification/ sectorization 2.3.1 Classification/sectorization

Classification: Goods and services are classified according to the national version of “Classification of Individual Consumption According to Purpose” (COICOP)

Relationship with international guidelines: The CPI calculation is based on the international standards, including the 2004 "Consumer Price Index Guidelines: Theory and Practice" methodological manual adopted by the UN, IMF, ILO, Eurostat, OECD and the World Bank
2.4 Basis for recording 2.4.1 Valuation

Types of prices: CPI characterizes the change in actual prices reflecting the VAT, excise and other direct taxes on the goods (service) in the free market, as well as the cost and profit of the commercial organizations

2.4.2 Recording basis

Timing of Price Observation: Consumer price registration is implemented ‘three times a month in food products (ten days interval), non-food products and paid services for the population in the third decade.
3. Accuracy and reliability
3.1 Source data 3.1.1 Source data collection programs

Source of weights: Data on household budget surveys related to the structure of final consumption expenditures of the population are used.

Timing of current weights: Available weights refer to 2019.

Frequency of weight updates:
The weights are updated every April to calculate the CPI.

Item selection: Regularly traded local production and import goods are involved in observation in accordance with medium purchaser power consumer basket.

Outlet selection: Representative selected outlets of all property and organizational-legal forms, markets as well as places where goods are sold and services are provided to citizens, are involved in observation taking into account the regularity, popularity of goods sold, services rendered to and the sale of local and imported goods.

Sample size: Prices of more than 500,000 goods and services from 5283 outlets are observed every month.

Price collection methods: Data on 8 large trade networks, which make 20 per cent of the trade turnover in Baku, are obtained in an electronic form (scanned) directly from the trade network, and from other outlets - in a tradition way by relevant experts of local statistical agencies through tablet computers in online mode.

Item/service specification: Detailed description of each item and service specification is provided in the list of goods (services) included in the consumer basket formulated for price observation.
3.3 Statistical techniques 3.3.1 Source data statistical techniques

Computation of lowest level indices: The geometric mean is used for computation of lowest level indices.

Aggregation: A modified Laspeyres formula is used to calculate the aggregate price indexes.

Linking reweighted index to historical index: "Reweighted" price index is divided into "historical" price index and coefficient is derived and used for linking indexes.

• Reference period: 2010=100.

3.3.2 Other statistical procedures

• Treatment of missing prices: In order to avoid the effects of seasonal factors on the consumer price index and to ensure continuity of price indices,"conventionally" calculated prices are used for commodities which disappear or their sale is sharply limited in the consumer market for certain periods of the year (imputation method)

• Adjustments for quality differences: Quality differences are taken into account during the calculation of price indexes.

• Introducing new products

Key condition to introduce goods (services) to sample (consumer basket) is that it should have a high share in the consumer market and consumption expenditure structure.

Seasonal items: Conventionally calculated prices are applied to products which disappeared due to seasonal factors.

Owner occupied housing:

The price index of conventionally calculated rent for owner-occupied housing is not calculated. However, price indices in the housing market and the price indices of goods and services used to maintain and repair of private housing in the structure of CPI are calculated.
3.4 Data validation 3.4.1 Validation of intermediate results

Verification of prices: Comparison of data included in the database is constantly monitored, measures are taken to identify possible errors and sharp differences, as well as to eliminate mechanical errors. When there is a doubt whether any of the primary data included in the database within the reference period is reflecting the truth, this information is verified once again and adjusted if necessary.

Verification of processing:

All the stages of the data processing are monitored and checked
4. Serviceability
4.1 Periodicity and timeliness 4.1.1 Periodicity

Monthly.

4.1.2 Timeliness

Fifth day following the reference month.
4.2 Consistency 4.2.1 Internal consistency

In statistical publications price indices are published by the republic, region and economic regions, total, by groups (food, non-food products and services) as well as by republic on the level of item (service)

4.2.2. Temporal consistency

Data on consumer price index are available in separate statistical publications for various periods, as well as on the webpage of the SSC.
4.3 Revision 4.3.1 Revision schedule

Consumer Price Index

Data are not subject to revision.
5. Accessibility
5.1 Data 5.1.1 Statistical presentation

The consumer price index is officially calculated and published by the State Statistical Committee since January 1995. The consumer price index was adopted as an indicator of inflation.

Consumer prices on food products are recorded three times a month (ten days interval), non-food products and paid services for the population in the third decade with monthly interval. The CPI calculation is based on the prices of 528 goods and services (food - 151, non-food - 274, and services - 103). Price observation is conducted on 58 cities (regions) of the country, so the index covers all territory of the Republic of Azerbaijan. In the index calculation, the modified Laspeyres formula is used.

5.1.2 Dissemination media and format

• Hard copy - New release

The index is published monthly in the press release

• Hard copy – monthly bulletin

“Prices and price indices” (Azeri)

• Hard copy - quarterly bulletin

“Social, Economic Development” (Azeri) monthly publication

“Prices and price indices” (Azeri)

• Hard copy - Quarterly bulletin

• Hard copy - Other

“Prices in Azerbaijan” (Azeri and English) yearbook (publication)

Section “Price indices” of annual statistical collections “Azerbaijan in figures” and “Statistical yearbook of Azerbaijan” (Azeri and English)

• Electronic - On-line bulletin or data

https://www.stat.gov.az/source/price_tarif/

5.1.3 Advance release calendar

The release calendar is published in the State Statistical Committee's Catalogue of Statistical Publications. Users may get a copy from the webpage (https://www.stat.gov.az/menu/6/) of the State Statistical Committee.

5.1.4 Simultaneous release

Data are released through press releases, through the regular State Statistical Committee's publications, and on the following webpage: http://www.stat.gov.az
5.2 Metadata 5.2.1 Dissemination of documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques

Metadata on indictors are available on the webpage of the State Statistical Committee (https://www.azstat.org/MetaDataG/)
9. Plans
9.1 Recent Plans for improvement - Recent improvements
Consumer Price Index
DQAF Codes    3.1.1     Recent improvements
9.2 General Plans for improvement - Short-term
State Statistical Committee of the Republic of Azerbaijan

Expanding the coverage without price registration by statistics directly from commercial enterprises in electronic form

Plans for improvement - Medium-term

Consumer Price Index
DQAF Codes    3.1.1  Plans

•Integration of e-data of trade networks on other cities and regions to database of consumer price index (using scanned data)
9.3 Financial Plans for improvement - TA/financing needs - Short-term


State Statistical Committee of the Republic of Azerbaijan
None
Plans for improvement - TA/financing needs - Medium-term

State Statistical Committee of the Republic of Azerbaijan
None

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