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I.O.'S ORDER OF THE CHAIRMAN OF COMMITTEE ACCORDING TO THE STATISTICS MINISTRIES OF NATIONAL ECONOMY OF THE REPUBLIC OF KAZAKHSTAN

of December 30, 2015 No. 230

About approval of Methodology of creation of consumer price index

According to the subitem 5) of article 12 of the Law of the Republic of Kazakhstan of March 19, 2010 "About the state statistics", and also the subitem 3) of Item 13 of the Regulations on Committee according to the statistics of the Ministry of national economy of the Republic of Kazakhstan approved by the order of the Minister of national economy of the Republic of Kazakhstan of September 30, 2014 No. 33, registered in the Register of state registration of regulatory legal acts for No. 9779, I ORDER:

1. Approve the enclosed Methodology of creation of consumer price index.

2. According to the statistics to provide the Ministries of national economy of the Republic of Kazakhstan in the procedure established by the legislation to management of statistics of the prices together with Legal management of Committee:

1) state registration of this order in the Ministry of Justice of the Republic of Kazakhstan;

2) within ten calendar days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan the direction on official publication in periodic printing editions and informatsinno-system of law of Ad_let;

3) within ten calendar days after state registration of this order in the Ministry of Justice of the Republic of Kazakhstan the direction in the Republican state company on the right of economic maintaining "The republican center of legal information of the Ministry of Justice of the Republic of Kazakhstan" for placement in Reference control bank of regulatory legal acts of the Republic of Kazakhstan;

4) placement of this order on Internet resources of Committee according to the statistics the Ministries of national economy of the Republic of Kazakhstan;

5) bringing this order to territorial authorities of Committee according to the statistics the Ministries of national economy of the Republic of Kazakhstan for management and use in work.

3. To impose control of execution of this order on the supervising vice-chairman of Committee according to the statistics the Ministries of national economy of the Republic of Kazakhstan (Dzharkinbayev Zh. A.).

4. This order becomes effective after ten calendar days after day of its first official publication.

Acting as Chairman

B. Imanaliyev

Approved by the Order of the acting as the Chairman of Committee according to the statistics of the Ministry of national economy of the Republic of Kazakhstan of December 30, 2015 No. 230

Methodology of creation of consumer price index

1. General provisions

1. This Methodology of creation of consumer price index (further – Methodology) belongs to the statistical methodology created according to international standards and approved according to the Law of the Republic of Kazakhstan of March 19, 2010 "About the state statistics".

2. In this Methodology the following determinations are used:

1) the price quotation – the price of the goods (service) having specific consumer properties (the name, producer, characteristics), registered in certain shopping facility;

2) registration of the prices – the method of collection of primary statistical data about the price level (rates) for consumer goods and paid services which is carried out on selective representative set of basic objects. Registration of the prices is performed by the corresponding officials of territorial authorities of statistics (further – the specialist);

3) the basic population – strictly certain category of the population chosen according to the purpose of consumer price index (further – IPTs) which consumer spendings are used when calculating;

4) basic object – the selected object for observation and registration of the prices in it;

5) the specification – the description or the list of characteristics which are used for identification of the separate goods (service) which are selected for registration of the prices;

6) goods (service) - the representative – set of certain types of goods (services) in commodity group which differ from each other in insignificant features (details) which are not influencing quality and the main consumer properties of goods (services) and are uniform in the consumer appointment;

7) weight – the value reflecting the relative importance of goods and services measured by their shares in expense amount of households;

8) weighing – the procedure applied in index calculations to receipt of summary indicators and providing commensurability of the different goods directly resistant to summing. Transition to set of commensurable goods (services) is performed by introduction of scales of indexes;

9) the fixed basket of goods and services – limited set of representatively selected Articles of consumer spendings with the determined and not changing quantitative ratios of the elements constituting it during the set period of time;

10) consumer spendings – the part of money expenditure of households directed to acquisition of consumer goods and services. Include purchase of food, alcoholic beverages, tobacco products, expenses on food outdoors, nonfoods and paid services;

11) the registration price – quantity of the monetary units paid for specific type of goods, service, quality, sales terms and for which period of time are accurately determined;

12) hitch coefficient – the indicator used for implementation of the procedure of coordination of chain indexes of the prices during updating of system of scales.

3. This Methodology determines:

1) sphere of observation of consumer price index;

2) selection for registration of the prices;

3) registration of the prices;

4) consumer segment;

5) replacement of basic objects and goods (services);

6) accounting of seasonal goods;

7) accounting of changes in goods quality (services);

8) quality assurance and reliability of primary data;

9) index weight;

10) calculation of price indexes and average prices;

11) derivative price indexes;

12) contribution of the changes in price of components of consumer goods basket in consumer price index;

13) distribution of official statistical information.

4. This Methodology is applied by Committee according to the statistics of the Ministry of national economy of the Republic of Kazakhstan (further – Committee) and its territorial authorities when carrying out nation-wide statistical observations of the prices of consumer goods and paid services and creation of price indexes.

5. The methodology is developed according to the following international standards of creation of consumer price index:

1) "Management on consumer price index: the theory and practice" (2004), prepared by the International Labour Organization, the International Monetary Fund, Organization for Economic Cooperation and Development, Statistical bureau of the European communities, the United Nations Economic Commission for Europe and the World Bank;

2) "Practice guidance on consumer price index" (2009);

3) "Regulations of the European commission on work with seasonal goods" (No. 330, 2009);

4) "National account system" (2008).

6. IPTs characterizes change in time of the average level of the prices of the fixed basket of the goods and services acquired by the population for private consumption.

7. IPTs is calculated for identification of real dynamics of the consumer prices reflecting their change in regions and the country, and also ensuring detailed idea of movement of the prices of specific groups of goods and services.

As the conventional indicator of inflation, IPTs is used when studying dynamics of the social and economic phenomena, for the analysis and the forecast of price processes in economy, in monetary, financial, tax, budget and social policy of the state.

8. The methodology of forming of IPTs is basis for calculation of price indexes for national groups with various level of average per capita cash incomes, core inflation, retail price index. Information base for their calculation are data on level of prices for the consumer goods and paid services acquired by the population, structure of consumer spendings of households, the retail turnover.

2. Sphere of observation of IPTs

9. The sphere of observation of index unites geographical coverage of the territory, types of households and shopping facilities, the range of the considered goods and services.

10. The geographical coverage in case of registration of the prices from the point of view of consumer spendings of the basic population includes all territory of the republic.

As the basic population for creation of IPTs the "all population" performing expenses on territories of the country is chosen. For the index measuring average change of consumer prices at the national level the households of category "all population" living in the country are basic. For determination of influence of the change in price for separate socio-economic groups of the population in case of creation of index consumer spendings of these groups are used.

11. Availability in selection of the urban and rural areas depends on distribution of the population, distinctions in expense structure and the changes in price. The scope joins the large cities (the capital, the city of republican value, the regional centers) and the district centers where the most part of the population lives and the operating sphere of trade and services provides regular price information taking into account the established requirements to bases of registration of the prices. Change in price tendencies in other settlements repeat movement of the prices in the large cities with certain temporary period.

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