Central Bureau of Statistics, Israel Merav Yiftach, Yoel Finkel UNECE/ILO, meeting of Consumer Price Indices, Geneva, 8-9 May, 2008.

2 Introduction: Israel ’ s participation in ICP What the former work process looked like Improved the PPP process by Enhancing the synergies between CPI and PPP Summary and future work

3 CoordinatorCountries Eurostat 27 European Union member stat 3 members of European Free trade area 6 Western Balkan countries Other (Turkey) OECD 7 Non European OECD member countries: Australia, Canada, Japan, Korea, Mexico, New Zealand, USA Other: Israel, Russia CISTAT and ROSSTAT CIS countries

4 The database is received from OECD and sent to the price coordinator A weekly timetable for price collection is defined Data collection include: prices, date of collection, details of outlets and problems in the process An editing and logical check process is applied The PPP coordinator sends the edited data to OECD The data are sent back from OECD to the PPP coordinator for questions and clarifications Additional checks are conducted in the field.

5 1. Refusal to cooperate 2. Definition discrepancies – some goods may be irrelevant or non-existent in the local market 3. Judgmental sampling - the sampling frame problem for a CPI is even more complicated for PPP 4. Sales 5. Seasonality 6. No Synergies with the CPI 7. No automatic System for classification, data collection and editing.

6 The synergies between CPI and PPP divided to 3 parts: Price collection Methodology Technology

7 1. Using prices directly from the CPI: Utilities: electricity, gas, water Telecommunications services Public transportation Insurances Recreation Other services

8 2. Prices in the CPI can be used for Supplemental information and logical check 3. Annual average for fruits & vegetables based on the monthly CPI collection 4. Good representativity: the selection process of items in the CPI based on the most popular item 5. Increasing the sample size of PPP based on CPI outlets 6.Refusals have been brought to minimum.

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10 1. Sampling procedures for CPI have been expended to allow for inclusion of PPP 2. Use of administrative data for CPI (housing, health records etc.) 3. Editing and logical check are performed in the CPI unit under the supervision of the head of Division and using the same methodology as in the CPI.

11 1. A system which automatically classify PPP and CPI into identical category was developed. CPI basket is updated every two year and the system accordingly 2. An initiation document for developing a total PPP system within the framework of CPI is now in process.

12 Identify and mark the items in the CPI system Receive survey by mail according to OECD timetable Data collection for PPP in the field: (1) if in the CPI system, then CPI (2) items that are not in the system - collect in large cities and/or shopping centers in other areas Integrate prices with CPI and compute averages For PPP Editing and logical checks The PPP coordinator sends the edited data to OECD Receive preliminary results for statistical editing Additional checks in the field and in the CPI system

13 Computerize data collection – HPC Computerize the other stages of process Take advantage of the present CPI technology

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18 Identify and mark the items in the CPI system Receive survey by mail according to OECD timetable Data collection for PPP in the field: (1) if in the CPI system, then CPI (2) items that are not in the system - collect in large cities and/or shopping centers in other areas Integrate prices with CPI and compute averages For PPP Editing and logical checks The PPP coordinator sends the edited data to OECD Receive preliminary results for statistical editing Additional checks in the field and in the CPI system computerized Will computerized