ICP-Africa Regional Workshop Pretoria, South Africa June 2011

2 Outline Validation at country level Introduction to the Household Consumption Survey Intra-country data validation Specificities with the Household Consumption Survey

3 Categories covered by the Household Consumption Survey Category Number of BHs Global Core List Number of itemsShare, % Food and non-alcoholic beverages Alcohol beverages, tobacco and narcotics4163 Clothing and footwear5539 Housing, water, electricity, gas and other fuels 5163 Furnishing, household equipment and routine maintenance of the house Health66411 Transport96411 Communication3132 Recreation and culture10539 Restaurants and hotels2285 Miscellaneous goods and service Introduction to Household Consumption Survey

4 Intra-country validation is a stage carried out by the NCAs to establish that Validation stage for items on regional item lists Reported prices are correct Price collectors within a country have priced products that match the product specifications Survey frame worked as anticipated National and sub- national Quarterly Data Annual Data Introduction to Country level validation

5 Objective to initially check price data collected by price collectors 1 st Phase: Initial Data Validation for Quarterly and Annual Data Objective to study and correct the data using statistical means 2 nd Phase: Statistical test for Quarterly and Annual Data 3 rd Phase: Finalization of data for Quarterly and Annual Data Objective to finalize the data and to send it to RCAs Validation phases within intra-country validation

6 1 st Phase intra-country Initial Data Validation Add price and metadata to validation softwareStep1 Ensure that the data is in right format Check prices and metadata for errors and discrepanciesStep2 Prices seem initially plausible and are according to NCA’s knowledge of the market? Priced products are according to products specifications? Quantities are correctly reported and calculated? Check that prices are sub-nationally plausibleStep3 Price differences between the regions/cities within a country are plausible? Check that prices are temporally plausibleStep4 Prices are plausible vis-à-vis previous ICP round or previous quarters? Check the number of important itemsStep5 Minimum requirement is1 important item per BH

7 Average product prices (average-observation-table) Individual prices (price-observation-table) 2 nd Phase intra-country Statistical Tests Check prices using Deviation testStep1 Check prices using T-Ratio testStep2 Check prices using Min/Max-price-Ratio testStep3 Compares minimum price against maximum price in reference quantity for the product Check prices using Coefficient-of-Variation testStep4 Standard deviation expressed as a % of the av. price for the product Compares individual price observations’ deviation from the average price against standard deviation of the product in reference quantity Measures deviation of the reference-quantity price for a price observation to the average reference-quantity price for the product

8 3 rd Phase intra-country Finalization of data Confirm prices and metadata to be intra-country validatedStep1 Ensure that all steps have been carried out successfully Ensure that data is in right (pre-agreed) format Submit prices and metadata to RCAStep2 Note:After receiving the data, RCAs may discover problems with the data Naturally this should be corrected instantly and before inter-country validation starts

9 Specificities with Household Consumption Survey Individual countries Priced products are according to the item specifications, survey frame is realistic for the item in question? Countries within region Price data is comparable? Validation checks for all items Quantities Reference quantities are correct (especially with multipack items), priced products fall into requested quantity range? Generic items Priced products are comparable brand wise? How are the private labels (SOBs) categorized? Food and non-alcoholic beverages Black market products Priced or not? Alcohol beverages, tobacco and narcotics Generic items Priced products are comparable brand wise? How are the private labels (SOBs) categorized? Clothing and footwear

10 Specificities with Household Consumption Survey Quantities Correctly calculated? Price volatility Comparability? Housing, water, electricity, gas and other fuels Generic items Priced products are comparable brand and model wise? Technical parameters Prices are comparable? Note Splittings, method for fast evolving technological products Furnishing, household equipment and routine maintenance of the house Pharmaceuticals Correct quantities, comparable active substances and brand types (generic, original)? Services Comparable facilities priced? How is government compensation treated? Health Fuels Price volatility, comparability of prices? Transport

11 Specificities with Household Consumption Survey Services Comparability of various “deals”? Communications Services Comparability? Recreation and culture Quality Comparability of priced services? Restaurants and hotels Quality Comparability of priced services? Miscellaneous Goods and Services

12 THANK YOU