- June 5, 2023
- Posted by: admin
- Categories: Current News, macroeconomic management
MEFMI conducted a virtual regional seminar on price statistics from 27 to 30 March 2023. The seminar provided a platform for participants to learn about critical price indices and the current values used in deflation, which correspond in timing, valuation, and scope for recording transactions. It also discussed and exchanged views on improving the quality, timeliness, and dissemination of price statistics in line with international best practices.
The compilation of price and volume measures within an accounting framework provides a check on the numerical consistency and reliability of the set of measures as a whole. This is particularly important when every flow of goods and services in the economy has to be covered, including non-market goods and services whose valuation is even more difficult in volume terms than at current prices.
It also allows countries to derive implicit price or volume measures for certain important balancing items. For example, gross value added can be measured in real terms by subtracting intermediate consumption in volume terms from output in volume terms, what is also referred to as the ‘double deflation’ method. Double deflation may be used at the level of an individual enterprise, industry, or sector as outlined in the System of National Accounts (SNA 2008).
There are four (4) major types of price indices available to derive volume measures in the national accounts, namely: consumer price indices (CPIs), producer price indices (PPIs), export price indices (XPIs), and import price indices (MPIs). The CPI is commonly used as a measure of all prices in some countries in the MEFMI region, usually due to lack of data.
A total of 65 officials from 12 member countries participated in the workshop. Of the 65, 38 (58%) were male and 27 were female (42%). The seminar was facilitated by two (2) resource persons, namely Dr. Katherine Pegler – Independent Consultant accredited by IMF and a National Accounts Specialist from the United Kingdom, and Mr. Senei Molapo, MEFMI Programme Manager.