Brief Introduction

 

I. Main Content

Data on the price indices in this chapter show the changing trend and the change rates in production, consumption and investment, including mainly consumer price indices of residents, retail price indices, price indices of agricultural means of production, purchasing price indices of farm products, producers’ price indices of industrial products, purchasing price indices of raw materials, fuels and power, price indices of investment in fixed assets, and real estate price indices.

II. Source of Data

Statistics on price indices are organized by the Urban Socio-economic Survey Organization, NBS. The urban socio-economic survey organizations of the provinces, autonomous regions and municipalities and of the selected cities and counties collect data from the grassroots units in accordance with the scheme of price survey stipulated by the NBS, tabulate them and report them to the higher agencies.

III. Consumer Price Indices of Residents and Retail Price Indices

Data for calculation of the consumer price indices of residents and the retail price indices in China are collected through a combination of sample surveys and surveys of key units. Areas distributed in different economic regions are selected as the sample areas and the representative commodities are selected as the sample commodities. Regular surveys are conducted to collect data on the market prices. Estimation of population made on the basis of the sample. At present, 226 cities and counties have been selected for this purpose. Following are major steps in the process of calculation of the price indices:

(1) The selection of the areas and places for survey: Based on such principles as regional economic features and reasonable geographic distribution, representative sample areas for the national survey are selected which include large, medium and small cities and counties. When the sample areas are selected, large-scale shops and markets (including fairs and service outlets) with great varieties of commodities are selected as the survey places.

(2) The selection of the representative commodities and their specifications or varieties: The representative commodities are the commodities consumed in large quantity and representative in price changes. The representative specifications or varieties are determined according to the data on the retail sales of commodities and the account data of the residents of close to 50,000 urban households and 67,000 rural households, following the related instructions for selection. In principle, only those specifications or varieties of the commodities can be selected: (a) They are closely related to the social production and people's livelihood; (b) They are sold in large quantities (or large values); (c) The market supply is stable; (d) The changes of their prices are representative in trend; (e) There is great difference among the specifications or varieties selected.

At present, data are collected on about 600-700 specifications each month under 251 basic headings in 8 categories in the consumer price surveys. For the retail price surveys, data are collected on more than 500 specifications each month under 225 basic headings in 16 categories

(3) Data collection: Enumerators are sent to the survey places to take the records of the prices. Nearly 10 thousand assistant enumerators are invited to assist the survey work.

(4) The determination of the weights: The weights for calculation of the retail price indices are determined mainly according to the total retail sales of commodities. The weights for calculation of the consumer price indices are determined according to the composition of the consumption expenditures of close to 120,000 urban and rural households.

IV.  Producers’ Prices of Industrial Products

Producers’ prices of industrial products refer to the price of industrial products when they leave factories. The survey program include the key units survey and typical units survey. The key units refer to all state-owned industrial enterprises and those non-state-owned industrial enterprises with annual sale revenue above 5 million yuan. The typical units refer to the non-state-owned industrial enterprises with annual sale revenue below 5 million yuan

(1) Principle in selecting the representative enterprises:

(a) Enterprises to be covered in the survey are selected by industrial sectors. In principle, every branch should have enterprises selected; (b) All (or a majority of) large-sized enterprises should be selected; (c) Enterprises with normal and stable production are to be selected; (d) Different types of ownership should be considered in selecting enterprises.

(2) The principle to select the representative products:

(a) The products are selected by industrial sectors; (b) The selected products should have great impact on the national economy and the people's livelihood; (c) The production of the products selected are stable; (d) The foreground of products is representative in trend; (e) The products are typical and with local color.

The present List of Industrial Products for the survey includes 2,700 products (including 5,700 specifications or varieties). The industrial sales value of the industries represented by these products accounts for more than 90 percent of total industrial sales value.

(3) Data collection: Reports by enterprises are adopted. About 45,000 industrial enterprises report price data every month.

(4) The determination of the weights: The weights for calculation of the producers' price indices of industrial products are determined according to the total sales value of industrial products. Data from the industrial census are used for the calculation. If industrial census data are not available for the reference year, industrial statistical data and statistical data from other agencies will be used to estimate the weights. The weights are replaced every five years.

V. Price Indices for Investment in Fixed Assets

Data on prices of investment in fixed assets are collected by the survey on key units and typical units. The prices of the survey of investment in fixed assets are the actual purchasing prices or balancing prices of entity of investment in fixed assets. The survey content includes the prices of main construction materials that composing the architecture engineering entity in the year, such as steel, timber, cement, local construction materials (such as brick, tile, calcareousness, sand, stone, etc.), chemical materials (such as oil paint, etc.), the price of labor force as input (wages), prices for renting of building machinery and equipment, the purchasing price of equipment, tools and instruments and the prices of others investments.

The following principle to select the sample of price survey of investment in fixed assets should be followed.

(1) The principle to select the prices survey point of construction and installation: (a) Sample units should be a certain coverage; (b) The economic activity of investment is great representative; (c) Different economic types of ownership should be considered; (d) The key projects need to be selected; (e) Give attention to both various branches and types of project.

(2) The principle to select the prices survey point of others investments: The principle to select the prices survey point of others fees is general the same as that of construction and installation, especially to select the projects with great investment value. Since it is not easy to obtain the other fees, it should do the key survey on the construction owner units and building units assisted with typical survey (gotten from the administration department), in the actual operation. 

 (3) Price survey way:  Enterprises reporting system is used together with the enumerators visiting method.

 (4) The determination of the weights: The weights for calculation of the price indices of investment in fixed assets are determined according to the average proportion of construction and installation, purchase of equipment, tools and instruments and others investment in the 3 previous years.

VI. Price Indices for Real Estate

The real estate in broad sense refers to the property in terms of buildings and land. Therefore, the price survey on real estate covers the following items:

1) Prices for selling houses and buildings. In terms of the types of houses sold at the market, prices for selling houses include the prices for commercial houses, for houses built or purchased by various units and for privately owned houses.

2) Prices for renting houses and buildings. Included in this category are prices for renting residential housing, office buildings, commercial buildings and warehouses.

3) Prices for land transaction. Included in this category are prices for the transaction of land used for residential housing, for industrial purposes, for commercial or recreational purposes and for other uses.

Survey on real estate prices employed a combination of survey of key units and survey of typical cases. Data are collected through reporting forms supplemented by interviews.

The survey on real estate prices at present is conducted in 35 large and medium cities, with a sample of 8,000 units.