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Statistics Center conducts price indices seminar.

Summary: ABU DHABI - Statistics Center - Abu Dhabi (SCAD) organized a seminar on the methodology of compiling price indices on Wednesday morning, with special reference to the 2009 figures for the consumer price index (CPI) and the building materials index at the Shangri La Hotel - Abu Dhabi.

Organizing this introductory seminar, attended by 62 governmental and private participants, underlines the strong emphasis SCAD lays on continued communication between the three elements of the statistical process; namely, the producer of indicators (the Center), data suppliers (sources of prices and figures) and output users (decision makers, the business sector and consumers), especially in light of the need for specialized analysis in interpreting the indicator figures, in pursuit of SCADAEs objective of providing decision makers, the business sector and all segments of society with high-value statistical culture that would maximize the CenterAEs ceaseless efforts to advance sustainable development in the Emirate of Abu Dhabi.

The seminar addressed the definition of the specialized terminology and explanation of the methodology followed in compiling the consumer price index (CPI) and the building materials index, along with a discussion of the concept of CPI, calculation of the inflation rate and monthly CPIAEs for 2009, the building materials index compilation methodology and results for 2009, followed by an overview of SCADAEs future plans in this regard. The CenterAEs yearly bulletins on the building materials index and the consumer price index were distributed to the audience.

The seminar was attended by Butti Ahmed Mohammed Bin Butti Al Qubaisi, Director of Statistics Center - Abu Dhabi, who stressed the importance of such initiatives, asserting SCADAEs keen interest in putting the initiative objectives into effect in the foreseeable future, noting that the CenterAEs strategy aims to maximize the reliability from the perspective of the public, make its indicators serve as guiding references in support of the emirateAEs strategic plans to achieve sustainable development in all sectors.

At the outset of the seminar, Abu Bakr Al-Amoudi Director of Statistics Sector at SCAD, gave a welcome address in which he also outlined the indices compilation method and analysis of results.

The seminar was staged by the Price Indices Section and presented Mr. Nasser Muhammed Dayan, Director of Economic Statistics at the Center, who reiterated the importance such seminars and similar events in the promoting statistical culture, in the context of SCADAEs endeavor to support the economic sector in maintaining its robust growth at all levels.

SCAD explained that a price index is a measure of the rate of change in the price of a commodity or a service or a set of goods and services between two time periods or between two different places at the same point in time. And since the prices of goods and services does not change at the same rate, therefore, the price index reflects the rate of change in the prices of a basket or group of goods and services represented by the index.

He noted that indices are simple to definition but complex to compile due to the multiple variables that must be taken into account in composing an index, the most important of these include determining the levels of deployment required, select an appropriate sample representative of the index to be built, weighting of goods, dealing with seasonal goods, the disappearance of some goods from the market while the study is in progress, in addition to the problems associated with collecting data from the field.

It was emphasized in the seminar that price indices, especially the industrial producersAE price index, are among the key economic indicator worldwide. Examples of commonly used price indices include: the consumer prices CPI)), the import price index (MPI), the export price index (XPI), the industrial product index (IPI), and the index of industrial producer price index (PPI) and the construction cost index (CCI), etc. There is a general interest in learning about the amplitude of price oscillations or the range within which prices move upward and downward. It is also a widespread practice worldwide to adjust the levels of wages, pensions, etc proportionally with changes in the prices of goods and services, i.e. linking wages to the CPI, a measure known as ocontract escalationo.

Price indices are direct indicators of the purchasing power of money in various financial transactions that involve goods and services. These figures are also used for adjusting purposes when calculating the GDP at constant prices.

The large audience commended the seminar conclusions assuring the instrumentality of the information provided to them, noting that it made them more capable of inferring indicators and citing them when they explore various aspects of Abu DhabiAEs growing economy.

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Publication:Khaleej Times (Dubai, United Arab Emirates)
Date:Mar 26, 2010
Words:784
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