The Consumers Price Index (CPI) is an indicator or measure of prices changes. It is a fixed weighted average of price relatives and is computed using the Laspeyres price index formula. The current weighting pattern is based on the 2005 Household Expenditure Survey (HES), which was carried out in 2005/06. The HES information was used to select the 'basket', which is the commonly used term for the goods and services prices for the purpose of compiling the CPI.
Key facts
- The Consumer Price Index(CPI) All Groups decreased by 0.4 per cent
- Transport showed a decrease of 1.9 per cent caused by an increase in: Overseas Travel down by 7.8 per cent
- Tobacco & Alcohol group prices down by 0.5 per cent
- Food group decreased by 0.06 per cent
- Housing and Household operations groups increased by 0.2 per cent
- Miscellaneous group increased by 0.07 per cent
- The underlying CPI increased by 0.05 per cent.
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Information about CPI
The Consumer Price Index covers price changes of the basket of goods and services consumed by all households on Rarotonga (the main island).
The base year is 2006. Prices are collected for 205 items and from selected outlets around Rarotonga. Individual prices are combined using weights from the Household Expenditure Survey (HES) conducted in 2004/5. The HES information was used to select the basket of goods and services.
The inclusion of an underlying measure is a recent improvement and it is published at the same time as the CPI. The underlying measure excludes items of a highly volatile nature, items that are subject to policy changes.
It excludes all locally produced fruit, vegetables, meat and fish; international airfares; mortgage interest, government rent, postal and telecommunication charges, electricity charges; tobacco and alcohol; petrol and diesel.
The CPI is computed using the Laspeyres price index formula.
