He Consumer Price Index (CPI) It is a macroeconomic indicator that is used to measure the behavior of the general price level in the country’s economy.based on the prices observed in the recently concluded month.
Important indicators are also obtained that become a useful tool to better guide the country’s public policies, such as monthly inflation (price variation from the current month compared to the previous month); inflationary rhythm (price variation from the same month to the same month of the previous year); and accumulated inflation (price variation from the current month to December of the previous year).
On that account, The CPI measures the evolution of the variation in the prices of goods and services consumed by an average family and the percentage of the budget allocated to that expense. Currently, the General Household Basket is made up of 13 expenditure divisions, 437 products and 930 varieties (goods and services).
Each of the products and divisions with their respective weighting at the Republic and regional level, which are the object of study for the calculation of the CPI.
On the other hand, The Basic Food Basket (CBA) is a set of basic foods that satisfy the minimum energy and protein needs of a person.; and They adapt to the culture, the availability of income and food available.
Currently, the INE calculates the cost of the CBA per person and per geographic area (urban and rural). The Urban Basic Food Basket (CBAU) contains 66 products and the Rural Basic Food Basket (CBAR) 60 productswhich quantify the grams suggested for an average person to cover energy requirements.
These data are derived from the fact that A basic food basket can be approached in two ways: with a normative approachif factors such as food safety and recommended diets are considered. Or with positive approachif we consider spending or consumption patterns.
The INE uses positive treatment and for this purpose uses the National Household Income and Expenditure Survey (ENIGH) as an instrument.This is how the INE determined, based on certain elements, that a person in an urban area requires 2,052 calories per day and 2,172 in a rural area.
Calculation of CBA
A sample of the Guatemalan population reported for a year the foods they consumed most per month. From that point on, A sample representing an average level of households was taken as a reference.
The previous basic basket only had 34 products, but considering factors such as cultural consumption habits, food availability and the average monthly income of the population, according to ENIGH, In urban areas the basic basket is made up of 66 products and in rural areas it is made up of 60.
Purchasing and consumption habits now include products such as carbonated water and soups, which do not provide nutritional value, but do provide calories.
Based on data from the CPI, the cost of living is determined, as is the minimum amount that an average Guatemalan spends to cover their daily caloric needs.
The CPI surveys the products that make up the General Household Basket, which is segmented into 13 categories (437 products and 930 varieties): food, restaurants, communications, health, miscellaneous goods, recreation, alcoholic beverages, clothing, insurance, education, furniture, housing and transportation.
To perform the monthly calculation, for example In June 2024, INE pollsters visited 15,258 sources of information in 18 departments and 37 municipalities nationwide.
So, Every month, the INE collects prices from different businesses, markets and stores. Every 10 days, the average price of all prices at the national level is distributed (from 1 to 10, from 11 to 20 and from 21 to the end of the month). This gives the representative price of each product and determines the monthly inflation and the inflationary rate.
The INE calculates the price of each product per gram (due to the variety of product sizes), Check how many kilocalories it contributes to the diet and multiply by the amount needed to cover the minimum daily energy requirements throughout the month.
So that Calculating the total cost of the CBA involves multiplying the median price of each product by the recommended daily amount, and then adding these costs for all products included in the CBA.
The Extended Basket (CA)
The Extended Basket (CA) It is defined as the set of goods and services that satisfy the expanded needs of the members of a household and according to the data declared by the households.includes food, alcoholic beverages, clothing and footwear, housing, furniture, health, transportation, communications, recreation and culture, education, restaurants and hotels, financial services and personal care.
With the current method, for calculating the CA, INE uses the Orshansky coefficient of 2.42 percent for the CAU, and 1.97 percent for the CAR, results of the ENIGH 2022-2023. For more information, please visit the INE website.
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