CHAPTER TEN

PRICES AND INTERNAL TRADE

This chapter includes the index numbers of wholesale & retail trade items , the average retail prices of the main household commodities and services distributed by mohafazat & the activities of internal and external trade establishments relating to public sector .

The following methods were adopted in computing the indices :

1- Wholesale prices :

Index number was calculated according to :

a - Paasche‘s formula whereas prices weighted by quantum offered at wholesale market annually .

b - Laspeyre‘s formula whereas prices weighted by base year quantum , 2000 was considered the base year .

2- Retail price index

he central Bureau of Statistics observed developing the coverage of retail price indices so as all Mohafazat of the country are covered according to priority of expenditure of the main household commodities and services .

A specialized technical committee from the CBS staff and university teachers have contributed in computation of the retail price indices by adopting a related scientific methodology . The retail price indices are computed for the whole country . They maintain the relative importance of expenditure by Mohafazat and according to rural & urban areas , Thus the retail price indices for the whole country , during 1998- 2002 , are herein presented . The 2000 was considered the base year while the weights of expenditures are drawn from the 1996 / 97 household & expenditure survey , a process which has been conducted according to three steps :

1- Weights of expenditures in every Mohafaza .

2- Weights of expenditures in every Mohafaza as percentage to total expenditure .

3 - Weights of expenditures for the country according to the four cycles of the household and expenditure survey by using the relatives of current prices per month by the base year prices per month in every Mohafaza .

The indices covered 210 item of goods and services that are distributed among the main expenditure items .