NSCB Resolution No. 12
Series of 2010
APPROVING THE REBASING OF THE CONSTRUCTION MATERIALS WHOLESALE PRICE INDEX TO YEAR 2000
WHEREAS, NSCB Resolution No. 6, series of 1991 provides for rebasing of the price indices every five years;
WHEREAS, the Construction Materials Wholesale Price Index (CMWPI), one of the most important economic indicators designed to measure the changes in the average wholesale prices of selected construction materials, is still based on 1985 prices;
WHEREAS, the market basket of the CMWPI was that prevailing in 1985 and changes have taken place over a long period of 25 years affecting the relevance of the basket;
WHEREAS, rebasing the CMWPI is necessary since some of the construction materials in the 1985 basket may no longer be existing, or are no longer available in the market due to changes in technology and to ensure that this barometer of economic performance is truly reflective of the current situation;
WHEREAS, the NSO applied the same methodology used in rebasing the CMWPI to 1985, and has generated the 2000-based CMWPI using as data inputs the total bill of materials necessary in the computation of the cost of different lateral and vertical construction projects submitted by the Department of Public Works and Highways (DPWH), the Subdivision and Housing Developers Association (SHDA) and the National Housing Authority (NHA);
WHEREAS, NSCB Resolution No. 2, series of 2009 provides for the synchronized rebasing of price indices to 2006;
WHEREAS, the NSO has completed the rebasing of the preliminary CMWPI to 2000 prior to the approval of NSCB Resolution No. 2, series of 2009;
WHEREAS, the Technical Working Group on Wholesale Price Index (TWG-WPI) under the Technical Committee on Price Statistics (TCPS) in its 28 September 2010 meeting, after making the necessary changes/refinements based on the comments of the TWG members, presented the same to the TCPS for review and subsequent endorsement to the NSCB Executive Board;
WHEREAS, the TCPS in its 26 October 2010 meeting recommended the adoption of 2000 as new base year of the CMWPI as proposed by NSO;
NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the Board approve the rebasing of the CMWPI to year 2000 as recommended by the TCPS, for adoption by all concerned agencies;
BE IT RESOLVED FURTHER, that the NSO 1) start releasing the 2000-based CMWPI in December 2010 covering the period January 2000 to November 2010; 2) stop releasing the 1985-based CMWPI in December 2010; and 3) conduct activities towards rebasing the CMWPI to 2006 per NSCB Resolution No. 2, series of 2009, entitled “Approving the Synchronized Rebasing of Price Indices to Base Year 2006”.
Approved this 9th day of November 2010, in Pasig City.
ROMULO A. VIROLA