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2008 Household Budgetary Survey: Insights into Spending Patterns and Economic Impact

The 2008 Household Budgetary Survey is a vital statistical inquiry conducted by the National Statistics Office (NSO) in Malta that aims to analyze household spending patterns to update the Retail Price Index (RPI) weighting frame. This comprehensive survey, conducted every five years, will involve a sample of 3,500 households, including 400 pensioners, allowing for a representative view of economic behavior. The data gathered will play a crucial role in determining the reliability of inflation indices essential for wage adjustments, rental contracts, and economic planning.

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2008 Household Budgetary Survey: Insights into Spending Patterns and Economic Impact

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  1. HOUSEHOLD BUDGETARY SURVEY 2008 Reno Camilleri A/Director General 10 September 2007 National Statistics Office Lascaris Valletta CMR 02 Tel: 25997000 Fax: 25997205 / 25997103 E-mail: nso@gov.mt www.nso.gov.mt

  2. Purpose & Characteristics • a statistical inquiry into household spending patterns • to provide a new weighting frame for Retail Price Index (RPI) • normally held every 5 years • last HBS was held in 2000/01

  3. Historical Development The HBS has a long history: • 1925: Dept. of Labour monitored changes in a basket of goods in order to ascertain changes in the standard of living of workers’ families in the wake of the 1914-1918 World War • 1936: 1st ‘scientific’ inquiry by the Commissioner of Labour and emigration into the spending habits of 100 workers’ households • 1937: ‘Cost of Living’ index constructed • 1943-1969: Other partial inquiries were held • 1971: 1st full-scale survey held; followed by several national surveys • Last 3 HBSs: held 1988/89; 1994/95; 2000/01

  4. Changes in Spending Patterns: from one HBS to another

  5. Pensioners Price Index • does it make sense? • 400 households will be interviewed • results will determine its introduction

  6. Targeted Population for HBS 2008 • all private households – some 140,500 • sample frame: 2005 Census will be used as a sampling frame from which sample of households will be selected • sample: originally a sample of 6,500 households will be selected using a systematic random sampling from the Census • Some households will refuse to participate; others will prove difficult to reach (different address from census records, etc.)

  7. Method used for HBS 2008 • final random sample of 3,500 households will be selected and spread over all localities, to include 400 pensioners’ households • screening to assess whether households want to participate • filling in of questionnaire on the main demographic characteristics of the selected households and their possessions • above information will then be used to correct certain imbalances in distribution of sample • filling in of diary. Households will be provided with 2 diaries in which to list all their purchases during a 2-week period • interviewers will assist the households

  8. Errors • sampling error: will be around 3% • bias: • attributed to human error • may include non-response to certain questions • attributed to non-adherence with exact definitions • careless notes • missing data • editing errors • data entry errors

  9. Cooperation of Households - Crucial • correctness of the new weighting frame for RPI depends on the full cooperation of participating households • reliability of inflation index which is used for: • wage adjustments • adjustments of rents • contractual obligations • ..and others ..depends on the full cooperation of participating households

  10. Conclusion • Correctness of new weighting frame and reliability of inflation index are objectives towards which the Office will be working with the carrying out of HBS 2008 • NSO seeks full cooperation from Maltese households and the active collaboration of all interested stakeholders

  11. THANK YOU

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