Family Income and Expenditure Survey
The Family Income and Expenditure Survey (FIES) is a nationwide survey of households undertaken by the National Statistics Office. It is the main source of data on family income and expenditures.
From 1957 to 1975, the FIES was conducted every five years. However, in 1985, a new series of FIES (in terms of content and methodology) had begun and the gap of conducting this survey was reduced to three years. Hence, this is the fourteenth FIES since March 1957.
Like the previous surveys, this undertaking aims to accomplish the following objectives:
- to gather data on family income and family living expenditure and related information affecting income and expenditure levels and patterns in the Philippines;
- to determine the sources of income and income distribution, levels of living and spending patterns, and the degree of inequality among families;
- to provide benchmark information to update weights in the estimation of consumer price index (CPI); and
- to provide inputs in the estimation of the country's poverty threshold and incidence.
Importance of the FIES
The FIES provides data that are needed in the different aspects of the country's economic conditions. Specifically, it is the basic source of information to the following:
- Updates of the weights used in the construction of the Consumer Price Index;
- estimation of the household account in the System of National Accounts and balances;
- measurement of the human development;
- measurement of poverty; and
- measurement of the levels of living of different sections of the population and disparities in levels of living between urban and rural areas, across geographical regions and socio-economic groups and for inter-temporal comparisons of these levels and disparities.
Other important uses of the FIES are as follows:
- It provides the level and pattern of family consumption and expenditures of socio-economic groups.
- It provides basic data for studies on the distinctive effects of direct and indirect taxation and of social benefits, for the formulation of income and fiscal policies and for the estimation of tax receipts.
- It furnishes information for assessing the impact on living standards of existing or proposed social and economic programs and for formulating welfare-oriented policies.
- It yields data needed for statistical demand analysis leading to the estimation of income, price and cross elasticities of demand, among other things. read more...
Consumer Price Index
The NSO CPI dates back to 1945 and has undergone several revisions. Prior to that, CPI, which was then referred to as Cost of Living Index, was constructed by the Labor Statistics Division of the Department of Labor. The task of calculating the index was transferred to the Bureau of the Census and Statistics (now the National Statistics Office) on January 1, 1941.
The first series constructed by the BCS was in 1945. The Cost of Living Index series had 1941 as base year and covered Manila only. The market basket contained 66 commodities representing goods and services commonly purchased by low-income families (families living within minimum level of subsistence). This series lasted for 18 years from 1945 to 1963.
The first revision was made in 1964. New weights were based on the results of the 1961 Survey of Income and Expenditures while the average price for 1960-1962 was used as the base price. This new series was referred to as the Consumer Price Index for Low-Income Families in Manila (families whose annual income did not exceed P2,400). The market basket contained 244 items.
Subsequent revisions were done in the following years:
1976: With 1972 as base year. This CPI series was limited only to all-income households. It covered all regions and provinces in the country including the National Capital Region (NCR).
1982: With 1978 as base year. Weights were derived based on the 1975 Family Income and Expenditures Survey (FIES) results updated to 1978 prices. This series covered all-income households. The market basket contained 407 items.
1992: With 1988 as base year. Weights were derived from the expenditure data of the 1988 FIES. A market basket for each of the 13 regions was established with the number of items ranging from 384 (for NCR) to 651 (for Region IV). Unlike in previous series where the composition of the market basket was determined by a technical committee (the Inter-Agency Committee on Price Statistics), the market basket used in this series was determined through the 1985 Commodity and Outlet Survey (COS) which was conducted using the sample households of the 1985 FIES. The 1985 COS was the first survey of its kind in the country with the purpose of identifying the market basket by asking sample households the commodities and services that they consumed most of the time and the type of outlets where these commodities and services are commonly purchased or availed of.
1996: With 1994 as base year. The expenditure data from the 1994 FIES survey results were used as weights. Individual provincial and city market baskets were constructed using the results of the 1994 COS undertaken by the NSO and the results of the validation work on the availability and saleability of the items in the 1988 market basket in the different geographical areas. There were no such baskets in the 1988-based series since the regional market baskets were used for the provincial CPIs.
2000: With 2000 as base year. Updating activity actually started in October 2000. Updating of the 1994 market basket was done through an interview of key informants in various outlets as to the availability and saleability of items they sell. The expenditure data from the 2000 FIES were the basis of the new CPI weights. Final reference files (base price, market baskets and weights) were completed in 2002. Computation of the 2000 and 2001 CPI series started in October 2002.
The new series with 2000 as base year is part of the Office regular calendar of activities to up date the present base year. The new series also features the use of separate provincial and city market baskets and the new set of 2000 weights also computed at the provincial and city level. read more...
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