NSCB Resolution No. 7
Series of 2011
APPROVING THE REBASING OF THE CONSUMER PRICE INDEX TO YEAR 2006
WHEREAS, the Consumer Price Index (CPI) is an important indicator for monitoring changes over time of the average prices of a fixed basket of goods and services which is meant to represent the totality of all the goods and services purchased by households relative to a base year;
WHEREAS, rebasing the CPI periodically is necessary since some of the items may no longer exist or are no longer commonly bought due to technological change or changes in consumer taste and to ensure that this barometer of economic phenomena is truly reflective of the current situation;
WHEREAS, NSCB Resolution No. 2, series of 2009, provides for the synchronized rebasing of price indices to 2006;
WHEREAS, the same methodology in rebasing the CPI to 2000 was employed by NSO in rebasing the CPI to 2006 but using different parameters such as the weights from the 2006 Family Income and Expenditure Survey and the updated market basket from the results of the 2007-2008 Commodity Outlet Survey (Annex BR-07-20110524-01);
WHEREAS, the Technical Committee on Price Statistics (TCPS) in its meeting on 31 January 2011 recommended the adoption of 2006 as new base year of the CPI as proposed by the NSO;
NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED that the Executive Board approve the rebasing of the CPI to year 2006 as recommended by the TCPS, for adoption by all concerned agencies;
BE IT RESOLVED FURTHER, that the NSO 1) start releasing the 2006-based CPI in July 2011 covering the period January 2006 to June 2011; 2) stop releasing the 2000-based CPI in January 2012; and 3) backtrack the 2006-based CPI series from 1957 to 2005 for completion in January 2012.
Approved this 24th day of May 2011, in Pasig City.
ROMULO A. VIROLA