7.5 Personal expenditure at constant prices
7.113 Personal expenditure on consumer goods and services at constant prices is available at the same level of detail as the national, provincial and territorial estimates at current prices, that is, for 130 series. They are mostly obtained by deflating the current price estimates using Consumer Price Indexes (CPIs) for Canada, the provinces and territories.1 The CPI series, which are released monthly, are based on multiple weight bases through time, linked together to form continuous series, and so are effectively chain price indexes. When no single CPI corresponds to a given series, many indexes can be combined and weighted together, to obtain the required deflator. In certain cases, indexes not directly related to consumption, such as indexes derived from average weekly earnings from Survey of Employment, Payrolls and Hours, are used. In other cases, constant price estimates are derived by multiplying quantity data by the average price for the base year or by applying the rate of change of related volume series to the current price estimates of the base year. The price index is then calculated by dividing the estimate at current prices by the estimate at constant prices. To deflate travel payments abroad (J215) and spending of military personnel abroad (J216), the CPIs of other countries, mostly the United States, are used, after having been adjusted for exchange rates.
7.114 The methods used to calculate the 130 series of personal expenditure at constant prices for the provinces, territories and Canada are presented in Table 7.9. For most commodities, provincial/territorial price indexes consistent with the national price index are available and are used to derive provincial and territorial constant price estimates. Whenever they are not available, the national price index, other related price indexes or provincial/territorial volume projectors are used. For example, provincial and territorial estimates of spending on air transport, postal and courier services and selected financial services are deflated with national price indexes.
7.115 Since the release of the National Income and Expenditure Accounts for the first quarter of 2001 and of the Provincial Economic Accounts in October 2002 covering the period up to 2001, personal expenditure aggregates such as the 38 groups (PS), 9 major groups (PSG), durable goods, semi-durable goods, non-durable goods, services and total personal expenditure are calculated using the chain Fisher index formula, which is described in Chapter 2. Prior to those releases, the aggregates were derived by summing the individual components, reflecting a fixed-base Laspeyres measure.
Sources and methods for provincial and territorial estimates of personal expenditure at current prices
- Appendix 7A Principal Methodology for Computing Estimators of Personal Expenditure on Consumer Goods
- 8 Government current expenditure on goods and services
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