A Key Component for ICP 2004 A well-established product list  Compare „ like with like “  Collect prices for relevant products  Establish reliable PPPs

The product list A product list (= item list) is a sample of goods and services that are identified to suitably represent the market and for which prices have to be collected.

Where are we? Concepts: methods, approaches, coverage Establishing of item list: pre-survey, data sources, country missions, improvement of draft list, finalization Preparation of price collection: sampling of outlets, translation, training of price collectors Actual price collection, national pre-check Multilateral editing (by regional co-ordinators); calculation of b.h. PPPs calculation of aggregate PPPs and results

A „Tabula rasa“ situation? Many countries make a fresh start  Previous ICP rounds were conducted long ago  No office ‘ s „ institutional memory “  OECD-Eurostat in a different situation (perpetual survey cycle)

Focus of this Session The first step towards the ICP item list  Information on availability of goods  Typical variants of the assortment  Identify relevant product characteristics

Two starting points  ICP-classification (expenditures)  How are expenditures grouped?  At what level of detail weights (expenditure data) can be attributed?  The role of a „ minimum “ classification  The basic heading as the building block of the list  Market reality (products „ consumed “ )  What is offered in the various shops?

„Sampling“ Classification - our building block: „ Basic heading “, as defined in the ICP classification, indicates only rough product types e.g. „ Pubs, bars, caf é s, tea rooms and the like “ On the market we find concrete products

A tool for sampling The Structured Product Definition – SPD

The SPD Approach  Is a tool to gain market information using a structured layout (checklist)  Lists item characteristics  Helps to identify relevant product variants within a Cluster  Provides the basis for item descriptions

The effect of the SPD To map the market into a document – finally the item list

Sources of market information Visit of outlets Contacts with retailers Searching information within the office (CPI, INTERNET) Trade fairs Eventually „ old “ ICP definitions

The Structured Product Definition - SPD The form - part 1

The Structured Product Definition - SPD The form - part 2

The Structured Product Definition - SPD The form - part 3

The Structured Product Definition - SPD  Offers some standard set of characteristics  Not yet exhaustive  Caution: the initial listing of parameters is already somehow determining  Overview of available brands

Interactions between parts involved (SPD)  Standard forms are provided by the global centre  To be managed by the regional coordinators  Completed in close cooperation with the countries

How to use the SPD  Revise the SPD to regional needs  Include necessary product groups, exclude dispensable ones  Decide on necessary parameters per product group (e.g. „ second hand product “ )  Decide on questions about additional information Steps of work for the regional coordinator (1)

How to use the SPD  Distribute revised SPD to countries about 2 weeks before initial visit  (Countries could start pre-completion on the basis of national product baskets)  During initial visit go to shops and markets together with NSI-colleagues  Complete the SPD together with country colleagues Steps of work for the regional coordinator (2)

The first country visits  Visit a sample of countries within your region  Not enough time/resources to visit all  Select those with diverse markets  Representing different situations in the region  Introduce the ICP work-programme to the country colleagues Tasks of the regional coordinator

The first country visits  General presentation of ICP - also to high level staff and other offices (ministries)  Intensive preparation of country colleagues (ICP) concerning requirements  Analysing existing information (CPI etc.)  Going over the future product basket together Typical aims of the visit

The first country visits  Identifying problematic areas  Going out on the market together  Common completion of SPDs  Establish a trusting work-relationship  Minimum stay for newcomer-countries: two week Typical tasks during visit

The first country visits  Fairly large country, diverse range of consumption goods and services on the market  An „ effective “ National Statistical Office, or NSI; published CPI, some NA available.  In other words: „ ICP-Infrastructure “ Ideally to following places:

The outcome  SPD is not yet an item list  SPD is not yet a region ‘ s questionnaire  Each sheet refers to a CLUSTER (group of items) but is a combination of parameter „ values “  Filter out single products (items)  Choose those variants which have been most frequently mentioned Steps from the SPD to pre- survey questionnaire (1)

The outcome  SPD info is based on some countries only  Other countries should be confronted with concrete item proposals  Other countries should give statements about availability of proposed items... ... and make additional proposals Steps from the SPD to pre- survey questionnaire (2)

Next step Concrete document for all countries of the region: the pre-survey questionnaire (next session)