Working Paper 1:
Construction of a Consumer Price Index for Cambodia: A Review of Current Practices and Suggestions for Improvement
K. P. Kannan, with Be Kalyanna, Long Vou Piseth & Chao Kimthy (November 1995)
Working Paper 1 in English, 58 pp.
Working Paper 1 in Khmer, 55 pp.
(out of prit, photocopies may be ordered)

Abstract

This paper attempts an evaluation of current practices in the construction of a consumer price index in Cambodia and offers some suggestions for improvement. It finds that there are many organisations in Cambodia, both within and outside the government, that are engaged in the collection of consumer price data, while some construct and publish a consumer price index. This paper finds that by far the most scientific system of collection and construction of a consumer price index is that of the National Institute of Statistics (NIS), which has only recently established its system for this purpose. However, the usefulness of the consumer price index constructed and published regularly by the National Bank of Cambodia (and price data collected and disseminated by other institutions) during a difficult time of economic and political transition, and prior to the establishment of a proper system at the NIS, needs to be recognised. A major limitation of most of the consumer price indices, including that of the NIS, is that they are based on data from Phnom Penh only. An attempt has been made in this paper to construct consumer price indices for selected provinces based on data collected by CDRI through a network of NGOs. Based on these indices, and as an illustration, a consumer price index for the country as a whole has been constructed for a limited period of time. The main recommendations are here: designation of the NIS as the sole official institution for the collection of price data and construction of an official CPI for Cambodia, extension of the NIS system to the provinces, and timely dissemination of CPI as a step towards building confidence in the economy.

Contents

(excluding appendices and bibliographies)
Why do we need a consumer price index?
How to construct a CPI?
CPI for Cambodia: what is the current status?
Consumer price index for Cambodia
Analysis and discussion
Summary of findings
Recommendations