Synchronized Rebasing of Price Indices in the Philippines
Price indices are used to measure cost of living as well as the economy’s price level. In the Philippines, price indices such as the consumer price index (CPI), general wholesale price index (GWPI) and producer price index (PPI) in agriculture and manufacturing have varying base years. In order to make base years comparable in the estimation of the national accounts, price indices are rebased by what is known as the “splicing” method. This method may be unnecessary when there is synchronizatiion of base years within price indices. Rebasing of price indices is usually done every five years by the National Statistical Coordination Board (NSCB). However, due to the differences in the availability of data, its implementation is contrained. Thus, this paper revisited and reviewed the policies on synchronizing base years, and explored on the feasibility of having a common and updated base year for all price indices being utilized in the Philippine Statistical System. Inputs to the rebasing of price indices were derived from the Family Income and Expenditure Survey (FIES), Commodity Outlets Survey (COS), Census of Philippine Business and Industry (CPBI), Input-Output Survey of Philippine Business and Industry (IOSPBI), and production surveys.