Amending the Statistical Advisory Board (SAB) Resolution No. 4, Series of 1985 on the Rebasing of Consumer Price Index

NSCB Resolution No. 1
Series of 1991

AMENDING THE STATISTICAL ADVISORY BOARD (SAB) RESOLUTION NO. 4, SERIES OF 1985 ON THE REBASING OF CONSUMER PRICE INDEX

WHEREAS, the SAB Resolution No. 4, Series of 1985 mandates the rebasing of the consumer price index (CPI) to 1985;

WHEREAS, the NSCB in its 15 September 1988 meeting voted down the adoption and dissemination of an updated CPI series based on 1985 prices using the weights from the 1985 Family Income and Expenditures Survey (FIES) and the market basket constructed from the 1985 Commodity and Outlet Survey (COS) citing that 1985 was a distorted or abnormal year and that the use of it as the new base year may render the series dubious;

WHEREAS, the Board in the same meeting decided that the CPI series with base year 1985 utilizing the weights from the 1988 FIES and the market basket developed from the 1985 COS be adopted instead;

WHEREAS, the National Statistics Office (NSO) proposes to come up with an index based on the 1988 prices using the weights from the 1988 FIES and the market basket from the 1985 COS citing that the series would be more timely and relevant than the one based on 1985 prices;

WHEREAS, the Technical Committee on Price Statistics (TCPS) recommends the adoption of the 1988-based CPI as proposed by the NSO for the following reasons:

  1. 1985 was not a normal year and using therefore the prices for that year as base price for the new index would not be appropriate;

  2. An index with base price and weights for same year, i.e., 1988, is technically better than the one based on prices and weights from different years; and

  3. Price data for 1988 are readily available with the NSO and therefore an index series based on 1988 prices can be generated.

NOW THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that 1988 be adopted as the new base year for the consumer price index.

Approved this 14th day of March 1991.