Since its inception in 1987, Saudi Arabia's Department of Prices and Index Numbers Statistics (DPINS) has improved markedly. It shifted from providing a mere indication of price movements to generating a very precise and reliable tool for conducting any type of economic analysis. From an index which was calculated manually on a quarterly basis and which covered only one city, the cost of living index has been developed into a tool capable of providing monthly and automatic price analyses for 16 Saudi cities – Riyadh, Jeddah, Dammam, Abha, Buraidah, Tabuk, Al-Hafouf, Makkah, Madina, Taif, Hail, Arar, Sekaka, Najran, Al-Baha and Jizan. Today, the cost of living index is issued for about 406 items. Each item has its own specifications that include the essential information that has an impact on a commodity's price. Prices are collected from selected stores based on a survey of points of sale carried out by the Central Department of Statistics and Information (CDSI) in 2001. The DPINS oversees the price programs and indices and issues the following bulletins: First: Program of Cost of Living Index for the Entire Population This program aims to prepare an index that measures price fluctuations of a fixed market basket of goods and services over a specific period of time. It was in 1980 that the cost of living index for the entire population was developed and the first monthly bulletin for April 1980 was issued. In that edition, the cost of living index was calculated using a computer, and the base year was updated to 1979 instead of 1970 while the weights were modified based on the results of the consumption spending survey conducted by the CDSI in 1976. Around 250 commodities were added and five cities which the survey covered were included. These cities were Riyadh, Jeddah, Dammam, Abha and Buraidah. In 1983, the program was modified slightly to improve the index; the base year was changed to 1983, the number of commodities increased to about 250, the prices were measured using the weights of the consumption spending survey which was conducted in 1980. Ten cities were included (Riyadh, Jeddah, Dammam, Abha, Buraidah, Makkah, Madina, Taif, Al-Hafouf and Tabuk). In 1989, the DPINS selected a new base year, 1988 instead of 1983, and updated the weights used for measuring prices based on a consumption spending survey conducted by the CDSI in 1985. The DPINS continued improving the cost of living index for the entire population. The last modification was made in 2001 and many significant changes were introduced. A new sample of items were selected for the cost of living index for the entire population based on the results of a consumption spending survey conducted in 1999. The total number selected for the cost of living index was 406 items. There was a 100 percent increase in the number of goods and services. The scope of the index's regional coverage was expanded to include 16 Saudi cities (Riyadh, Jeddah, Dammam, Abha, Makkah, Madina, Buraidah, Taif, Tabuk, Al-Hafouf, Hail, Arar, Najran, Al-Baha, Sekaka and Jizan) to represent all administrative regions of the Kingdom. There was a revision made to update the goods and services basket and the technical methods and approaches followed by enhancing the fieldwork, processing data and increasing efficiency. To achieve this goal, the National Computer Center introduced new programs based on Oracle databases as a new system for data input and processing. This system was chosen because it could be used to adjust price data easily and directly on the computer screen and prepare different types of reports. The new publishing program was revised as well. It aims to enhance outputs and add a modern touch to the network to maintain the status of the cost of living index for the entire population as a valued index of economic policies. Second: Program of Indices of Wholesale Prices The CDSI commenced collecting wholesale prices in 1973 in Riyadh, Jeddah and Dammam. The index aims to measure average price fluctuations for the goods and services sold at primary markets in the Kingdom. The bulletin is issued every three months and includes indices for 160 main commodities distributed over 10 basic departments, namely: 1. Department of Food and Live Animals Consumed by Humans 2. Department of Beverages and Tobacco. 3. Department of Raw Materials except Fuel. 4. Department of Mineral Fuel, Lubricating Oils and Relevant Materials. 5. Department of Animal and Vegetables Fats. 6. Department of Chemicals and Relevant Products. 7. Department of Manufactured Goods Classified by Material. 8. Department of Machinery and Transport Equipment. 9. Department of Miscellaneous Manufactured Commodities. 10.Department of Other Commodities. The bulletin also includes an explanation on how the index of the wholesale prices is prepared and calculated, the most important movements of wholesale prices, and charts that illustrate changes in the index by department. It includes the following tables: 1. Table of Index of Wholesale Prices by Department. 2. Table of Index of Wholesale Prices by Departments and Sections. 3. Table of Index of Wholesale Prices by Departments, Sections, and Items. 4. Table of Annual Average for the Index of Wholesale Prices. 5. Table of Relative Weight for the Index of Wholesale Prices.
