## Cabo Verde: Technical Assistance Report-Consumer Price Index

_IMF Staff Country Reports, November 21, 2023_

## Source details

**Canonical URL:** [Cabo Verde: Technical Assistance Report-Consumer Price Index](https://www.imf.org/en/publications/cr/issues/2023/11/21/cabo-verde-technical-assistance-report-consumer-price-index-541644)

## Other formats

- [Markdown version](/en/publications/cr/issues/2023/11/21/cabo-verde-technical-assistance-report-consumer-price-index-541644/index.md)
- [Structured JSON version](/en/publications/cr/issues/2023/11/21/cabo-verde-technical-assistance-report-consumer-price-index-541644/index.json)
- [Bundle manifest](/en/publications/cr/issues/2023/11/21/cabo-verde-technical-assistance-report-consumer-price-index-541644/bundle-manifest.json)

## Bibliographic details
- Published: November 21, 2023
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9798400261084.002

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### Executive summary and main findings
- Current CPI weights are based on expenditure data collected during the 2015 household income and expenditure survey.
- These data are out of date and there is urgent need to update CPI weights.
- Overall, the methods used to compile the CPI for Cabo Verde largely reflect international standards and best practices; however, there is scope for improvement.
- Instituto Nacional de Estatística Cabo Verde (INECV) has defined the rolling 12-month average as the headline or official index.
- The 12-month rolling average smooths the data; the report states that the headline index (official inflation rate) should not be adjusted or smoothed.

### Methodological recommendations
- Index calculation methods should be based on the modified or short-term formula.
- The modified or short-term formula, recommended in the 2020 CPI Manual, is more flexible and allows the outlet and variety samples to remain representative and facilitates the introduction of new items.
- It was recommended that INECV begin using the annual (12-month) change as the headline or official inflation rate for Cabo Verde.

### Policy implications and priorities
- Update CPI weights urgently to reflect current expenditure patterns (2015 weights are out of date).
- Adopt index calculation using the modified or short-term formula to improve flexibility in sample representation and item introduction.
- Replace the rolling 12-month average headline definition with the annual (12-month) change as the official inflation rate to avoid smoothing the headline measure.

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## Content in this bundle

- **CABO VERDE Consumer Price Index — JULY 2023**
  - [CABO VERDE Consumer Price Index — JULY 2023 (Markdown version)](/-/media/files/publications/cr/2023/english/1cpvea2023003.pdf.md){rel="alternate" type="text/markdown"}
  - [CABO VERDE Consumer Price Index — JULY 2023 (PDF)](/-/media/files/publications/cr/2023/english/1cpvea2023003.pdf){rel="external" type="application/pdf"}

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_Source: https://www.imf.org/en/publications/cr/issues/2023/11/21/cabo-verde-technical-assistance-report-consumer-price-index-541644_