The purpose of the mission was to assist the National Statistics Office of Georgia (Geostat) with continuing its modernization of the Consumer Price Index (CPI). This was the first technical assistance (TA) mission to Georgia to specifically focus on scanner data (SD). Two earlier missions on the residential property price index (RPPI) (September 23–October 4, 2019, and November 30–December 4, 2020) already provided initial guidance and addressed the planned modernization of the CPI using SD. The mission was delivered remotely, and the sessions were recorded for future reference.
This Technical Assistance (TA) report on Georgia is on Residential Property Price Indices (RPPI) Mission. The contents of this report constitute technical advice provided by the IMF staff to the authorities of Georgia in response to their request for TA. The Second Phase of the G-20 Data Gaps Initiative and guidance on Financial Soundness Indicators identify RPPI as a critical ingredient of financial stability policy analysis and macroprudential measures. National Statistics Office of Georgia (Geostat) is aiming at compiling a quarterly RPPI covering new flats and new detached houses for the capital city, Tbilisi. The mission implemented successfully the programs developed in R based on the IMF’s draft for the RPPI Practical Compilation Guide with the available data. The mission provided some guidance on the use of scanner data (SD) on the consumer price index (CPI) compilation. As per request of the Geostat Director, the mission also addressed the use of SD. The introduction of SD should be made on a stepwise approach to avoid huge impacts on the CPI and to make it more manageable, reliable, and safe.
The second phase of the G-20 Data Gaps Initiative and guidance on financial soundness indicators identify the residential property price index (RPPI) as a critical ingredient of financial stability policy analysis and macroprudential measures. At the request of the National Statistics Office of Georgia (Geostat), a technical assistance mission was conducted by the IMF’s Statistics Department (STA) to support the launch of a new quarterly RPPI for Georgia. This work was part of a three-year project to improve national accounts and price statistics in Eastern and Southeastern Europe, funded by the Government of The Netherlands. The mission finalized the preparatory work to disseminate the quarterly RPPI beginning in April 2021.
The purpose of the mission was to assist the Bureau of National Statistics of the Agency for Strategic Planning and Reforms of the Republic of Kazakhstan (BNS) with continuing its modernization of the Consumer Price Index (CPI). This was the first technical assistance (TA) mission to Kazakhstan on scanner data (SD). The mission was delivered remotely.
The Consumer Price Index Manual: Concepts and Methods contains comprehensive information and explanations on compiling a consumer price index (CPI). The Manual provides an overview of the methods and practices national statistical offices (NSOs) should consider when making decisions on how to deal with the various problems in the compilation of a CPI. The chapters cover many topics. They elaborate on the different practices currently in use, propose alternatives whenever possible, and discuss the advantages and disadvantages of each alternative. The primary purpose of the Manual is to assist countries in producing CPIs that reflect internationally recommended methods and practices.
Georgia’s economic performance remains robust. Growth has moderated from double digits but remains high, inflation is low, and fiscal and financial buffers are healthy. EU candidate status has boosted sentiment, but the global environment remains highly uncertain due to ongoing conflicts and shifting geo-economic patterns. Georgia should continue to strengthen its resilience to adverse shocks by maintaining prudent macroeconomic policies and boost its growth potential by addressing long-standing structural challenges, capitalizing on new economic opportunities, and making decisive progress towards EU accession.
High frequency estimates suggest a V-shaped recovery with output now poised to return close to 2019 levels already this year, much earlier than expected. Recently COVID-19 case numbers have risen sharply to new highs while vaccinations have also accelerated significantly after a slow start. The recovery has improved the fiscal outlook and the authorities submitted to Parliament a supplementary budget, with GEL 1.2 billion in additional spending roughly equivalent to the expected increase in revenues. The National Bank of Georgia (NBG) has increased the policy rate by 200 basis points to deal with high inflation driven by lagging effects of depreciation, commodity and food price increases, and supply side constraints.
The Consumer Expenditure (CE) surveys are the only source of information on the complete range of consumers' expenditures and incomes in the United States, as well as the characteristics of those consumers. The CE consists of two separate surveys: (1) a national sample of households interviewed five times at three-month intervals; and (2) a separate national sample of households that complete two consecutive one-week expenditure diaries. For more than 40 years, these surveys, the responsibility of the Bureau of Labor Statistics (BLS), have been the principal source of knowledge about changing patterns of consumer spending in the U.S. population. In February 2009, BLS initiated the Gemini Project, the aim of which is to redesign the CE surveys to improve data quality through a verifiable reduction in measurement error with a particular focus on underreporting. The Gemini Project initiated a series of information-gathering meetings, conference sessions, forums, and workshops to identify appropriate strategies for improving CE data quality. As part of this effort, BLS requested the National Research Council's Committee on National Statistics (CNSTAT) to convene an expert panel to build on the Gemini Project by conducting further investigations and proposing redesign options for the CE surveys. The charge to the Panel on Redesigning the BLS Consumer Expenditure Surveys includes reviewing the output of a Gemini-convened data user needs forum and methods workshop and convening its own household survey producers workshop to obtain further input. In addition, the panel was tasked to commission options from contractors for consideration in recommending possible redesigns. The panel was further asked by BLS to create potential redesigns that would put a greater emphasis on proactive data collection to improve the measurement of consumer expenditures. Measuring What We Spend summarizes the deliberations and activities of the panel, discusses the conclusions about the uses of the CE surveys and why a redesign is needed, as well as recommendations for the future.
The consumer price index (CPI) is a key economic indicator used to gauge inflation, adjust wages, pensions, and social benefits. The producer prices index (PPI) is used for forecasting and deflating GDP estimates. Both indexes are used by the Fund, policymakers, and researchers for global, regional, and domestic surveillance. In this context, the paper evaluates the soundness of the indexes by assessing four major criteria: frequency of updating the weights, the index coverage, timeliness, and the use of international classifications. We discuss online and scanner data as frontier issues. The study shows that the CPI is universally and frequently compiled, timely, and fairly-well aligned with international standards. However, the weights used to compile the index are updated in only 45 percent of economies and have national coverage in 76 percent. PPIs, compiled by only 126 economies are timely, but there is scope for continued improvement as only 36 percent of economies have updated PPI weights and approximately 67 percent maintain the recommended coverage. Outdated weights impact the reliability of the indexes for policy analysis. Frequently updated weights and well-represented coverage mitigate against biases and ensure that the indexes properly measure the price evolution in the economy.
