Computation of Spatial Price Index for the Poor

This monograph is the first publication produced from SEARCA’s collaboration with the Philippine National Statistics Office (NSO). This study aimed to develop and compare methodologies in the computation of spatial costof- living indexes (SPI), compare price movement across space and over time, using different sets of consumption patterns or weights. Specifically, it was conducted to provide options for appropriate weighting pattern of commodities for SPI and estimate relevant indexes for the target population. This study hopes to serve as an initial contribution to efforts in producing reliable national statistics that will help the government achieve its development plans and programs targeted at improving the conditions of poor households. The basket of commodities consumed by the poor and the prices paid for these commodities are often different from those consumed and paid for by the other income groups and the price index generated using these criteria can be used to assess the incidence of poverty and to monitor progress of policies that aim to alleviate poverty.