NSCB Resolution No. 20
Series of 2009

APPROVING THE REBASING OF THE GENERAL RETAIL PRICE INDEX
IN THE NATIONAL CAPITAL REGION TO YEAR 2000

WHEREAS, NSCB Resolution No. 11, series of 2003, defines retail price as the “price at which a commodity is sold for spot in small quantities for consumption”;

WHEREAS, retail price covers transactions on cash basis in the open market but excludes black market prices of commodities and those that are considered “on sale” such as anniversary sale, and the like;

WHEREAS, the retail price index is one of the most important economic indicators designed to:  a) measure the average change over time in the retail prices of commodities relative to a base year;  b) monitor the economic situation of the retail trade sector;  c) serve as a deflator in the national accounts;  d)  guide in economic analysis and policy formulation;  and  e)  aid in forecasting business;

WHEREAS, the Survey of Retail Prices of Commodities for the Retail Price Index which produces the basic price data is a designated statistical activity;

WHEREAS, the general retail price index (GRPI) in the National Capital Region (NCR) is currently being released by the National Statistics Office (NSO) on a monthly basis;

WHEREAS, the existing GRPI in the NCR is still based on 1978 prices and due to significant changes that had taken place over a period of more than 30 years, the relevance of the market basket and the weights being used for GRPI had been affected;

WHEREAS, NSCB Resolution No. 6, series of 1991, mandates the rebasing of the price indices every five years;

WHEREAS, periodic rebasing of the GRPI is necessary to ensure that the market basket represents what are now being purchased/traded in the retail market and to serve as a barometer of economic phenomenon which is truly reflective of the current situation;

WHEREAS, the NSO, to be relevant to its stakeholders, has proposed the rebasing of the GRPI from 1978 to 2000;

WHEREAS, NSCB Resolution No. 2, series of 2009, provides for the synchronized rebasing of price indices to base year 2006; 

WHEREAS, the NSO has completed the rebasing of the GRPI to 2000 prior to the approval of NSCB Resolution No. 2, series of 2009;

WHEREAS, applying the same methodology used in rebasing the GRPI from 1972 to 1978, the NSO has generated the 2000-based GRPI using as data inputs, the 2000 Input-Output (IO) Table, the 1999 Census of Philippine Business and Industry, and the market basket of the 2000-based Consumer Price Index in the NCR;

WHEREAS, the Technical Working Group on Wholesale Price Index, Retail Price Index and Related Indices under the Technical Committee on Price                 Statistics (TCPS) reviewed the proposed 2000-based GRPI in NCR during its meetings on 10 June and 03 September 2009 and later presented the same to the TCPS for review and subsequent endorsement to the NSCB Executive Board;

WHEREAS, the TCPS in its 22 September 2009 meeting, after making the necessary changes/refinements based on the comments of the NSCB Technical Staff and other concerned agencies/stakeholders, recommended the adoption of 2000 as new base year of the GRPI in the NCR as proposed by NSO;

NOW, THEREFORE, BE IT RESOLVED AS IT IS HEREBY RESOLVED, that the Board approve the rebasing of the GRPI in the NCR to year 2000 as recommended by the TCPS, for adoption by all concerned agencies;

BE IT RESOLVED FURTHER, that the NSO:  1) include in its future plans the conduct of activities towards rebasing the GRPI to 2006 per NSCB Resolution No. 2, series of 2009, entitled  “Approving the Synchronized Rebasing of Price Indices to Base Year 2006”;  and  2)  explore the possibility of generating and compiling GRPI for all regions, subject to availability of resources and data inputs.

Approved this 11th day of November 2009, in Pasig City.

Attested by:

ROMULO A. VIROLA
Secretary General