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International Monetary Fund

been updated, the new index using updated weights should be calculated for an overlapping period with the old one so that the two can be linked. Classification 4.56 In deriving the weights, the detailed expenditure items identified in the HES must be mapped to the CPI expenditure classes. If HES classes do not match CPI expenditure classes, the HES results must be transformed to match the CPI categories. This can be done by aggregating or disaggregating the relevant HES headings over the relevant CPI expenditure classes. Such transformation is achieved much

Brian Graf

the reference period. The reliability of the CPI weights will obviously depend, to a large extent, on the reliability of the household expenditure data. In practice, the derivation of weights involves a series of steps. Arrange the Data According to the Classification and Coverage of the CPI 3.59 The detailed expenditure items identified in the HBS, or other data sources, must be mapped to the CPI expenditure classes. If HBS classes do not match CPI expenditure classes, the HBS results must be transformed to match the CPI classes. This can be done by