NSCB Resolution No. 7
Series of 2003

EXPANSION OF THE COVERAGE OF THE WHOLESALE PRICE SURVEY TO INCLUDE IN ITS GEOGRAPHIC COVERAGE CEBU CITY AND DAVAO CITY IN ADDITION TO THE NATIONAL CAPITAL REGION AND REVISION AND REBASING OF THE WHOLESALE PRICE INDEX (WPI)

WHEREAS, the WPI is one of the important economic indicators designed to measure the average change over time in the wholesale prices of commodities relative to a base year, and a vital guide in economic analysis and policy formulation;

WHEREAS, NSCB Resolution No. 6, Series of 1991 mandates the rebasing of the price indices every five years;

WHEREAS, the market basket of the current WPI was those prevailing in 1985 and changes had taken place over a period of more than 10 years affecting in turn the relevance of the basket;

WHEREAS, the geographic coverage of the 1985-based WPI extends only to the area of the National Capital Region (NCR);

WHEREAS, in the absence of the WPI in other areas, the WPI in NCR is used to estimate the WPI in the Philippines and other areas;

WHEREAS, to meet the increasing demand for subnational data and to portray a better picture of the wholesale trade sector of the Philippines, it is deemed necessary to expand the scope and coverage of the wholesale price surveys;

WHEREAS, the NSO conducted a study on the matter and is recommending for the inclusion of Cebu City and Davao City in the WPI to represent the Visayas and Mindanao regions, respectively;

WHEREAS, the NSO is proposing the adoption of 1994 weights since both the 1994 Census of Establishments and the 1994 I-O table are the latest relevant data available as of date;

WHEREAS, to facilitate collection of base-year prices for Cebu City and Davao City, 1998 was chosen as base year for prices since 1994 is already too far from 1999, when the NSO conducted its study;

WHEREAS, the NSO plans to release the expanded coverage and the monthly 1998-based WPI series in January 2004 and to stop generating and releasing the l985-based monthly WPI starting January 2004;

WHEREAS, the Technical Committee on Price Statistics (TCPS) has held discussions to evaluate the methodology used in expanding the coverage of the wholesale price survey and in revising and rebasing the WPI based on the recommendations of the NSO;

WHEREAS, the NSCB Technical Staff supports the recommendation of the TCPS for the expansion of the coverage of the Wholesale Price Survey to include Cebu City and Davao City, in addition to the National Capital Region, and the revision and rebasing of the Wholesale Price Index (WPI);

NOW THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the Board approve the recommendation of the TCPS to expand the coverage of the Wholesale Price Survey to include Cebu City and Davao City, in addition to the National Capital Region, and the revision and rebasing of the Wholesale Price Index (WPI) for adoption of concerned agencies.

Approved this 23rd day of June 2003.

ATTESTED BY:

ROMULO A. VIROLA
Secretary General