Page 372 - NIEN GIAM 2017

EXPLANATION OF TERMINOLOGY, CONTENT
AND METHODOLOGY OF SOME STATISTICAL
INDICATORS ON PRICE

Consumer price index (CPI) is a relative indicator (measured
by %) reflecting the tendency and change in the price level by time series
of market basket of selected representative consumer goods and services.
The basket of goods and services for measuring CPI consists of popular
goods and services which represent for the population’s consumption are
revised and updated every 5 years to be conformity with population’s
consumption in each certain period.

Weight for CPI compilation is the expenditure share for item

groups in the total of the household expenditure which is collected from
results of Vietnam Household Living Standard Survey (VHLSS) and used
constantly in a 5-year period.

Weighted geometric mean Laspeyres formula is used to
compile CPI: 0

t
n


i
I t 0    p  W i
0 

p
i 1  p i 
Where:
I t 0 : CPI in the reference period (t) compared to the constant
p
base period (0);
0
t
p , p : Consumer price of product i in the reference period (t)
i
i
and in the constant base period (0) respectively;
V 0
W i 0  n i : Weight in the constant base period (0);
 V i 0
i 1
V : Consumer expenditure in the constant base period (0);
0
i
n: The number of items/ item groups.

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