Next year the National Statistics Office will carry out a household budgetary survey among a representative sample of resident private households for the purposes of gathering information about day-to-day expenditure.
Although similar projects are conducted in all EU member states, this survey is primarily used for national purposes, as it provides valuable information on the income and expenditure of Maltese households.
Furthermore, the survey is a vital tool for the compilation of weightings for important macroeconomic indicators, such as consumer price indices, used as measures of inflation, and national accounts.
The data collected from households will serve to capture changing consumption patterns and will therefore determine how the weights in the so-called basket of household products and services would have to be adjusted to better reflect current realities.
Data collection involves a combination of interviews, and the keeping of diaries by all household members, generally on a daily basis, over a two-week period.
Expenditure incurred by households to acquire goods and services is recorded at the prices actually paid, which include indirect taxes such as value-added tax or excise duties borne by the purchaser.
There are various consumer price indices, but the one that needs the household budgetary survey most is the Retail Price Index (RPI).
Updating the RPI weights is an important process for every statistical office since the index measures price changes and consequently is a key indicator of the impact of inflation on family budgets.
The weights were last updated in 2010, following the 2008/9 household budgetary survey. At that time, Malta had just adopted the euro as its national currency.
Inflation affects households’ earnings, allowances, benefits, pensions and savings.
Our take-home wage or salary, as well as any rents we pay, are potentially influenced by the RPI since the method of adjustment usually takes note of the periodic changes in this index.
It is of paramount importance that the index adequately reflects consumption patterns of the average resident household.
It is of paramount importance that the index adequately reflects consumption patterns of the average resident household
All occupied private households across Malta and Gozo will be eligible for selection.
The survey will span one calendar year. In this way the NSO ensures that any seasonal shift in national consumption patterns and prices is reflected in the survey findings. By means of the diary, participant households will be required to record daily expenditure, as well as other occasional expenditure, over a fortnight.
It is important to stress that the information collected from residents will be used internally for statistical purposes only.
As is the case with all survey data collected by the Office, details of households and individuals gathered in the course of the survey will be treated in the strictest confidence in conformity with the Malta Statistics Authority Act.
Data is anonymised and coded after being collected, and no identifiable information is passed on to third parties in any form.
All people involved in the data collection process are bound by an oath of office, including any external interviewers who are recruited for this particular exercise.
In this way, individual data is safeguarded in a holistic manner.
Once the products and services most used by families are identified through the household budgetary survey, the respective prices are collected regularly and incorporated in the RPI. From this aspect, the survey must therefore be viewed as a regenerative exercise of this consumption index.
I encourage selected households to participate in this survey out of a sense of civic duty, as they would be making a worthy contribution towards the collection of information on consumption patterns in Malta.
The expenditure of all household members, ranging from matches to mink coats, should be diarised, including online purchases. Quality and the broadest possible coverage are key principles when recording expenditure.
The reliability of the results depends to a large extent on the accuracy, reliability and comprehensiveness of the information provided by respondents.
The NSO will show its appreciation to the participant families by offering a monetary compensation in acknowledgement of their effort.
Michael Pace Ross is director general of the National Statistics Office.