QUESTIONS ON YOUR MIND: █Why was there a need to re-base the - TopicsExpress

QUESTIONS ON YOUR MIND: █Why was there a need to re-base the Namibia Consumer Price Index? █►There was a need because the previous weights in the CPI were based on the 1993/94 Household Income and Expenditure Survey (HIES) and were not reflect significant shifts in patterns of expenditure that can be expected to have taken place since then. It is for this reason that the weights in the CPI need to be updated. The CPI samples and weights are updated during revisions to reflect this marketplace (eg. Real income changes, the introduction of new product distribution patterns and marketing techniques, population and other demographic changes and changes in consumer preferences) changes, because without such updates the index would cease to be an accurate measure of current price inflation.

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