**Table 12 Share of Tradable and Non-Tradable in the Consum 3tion Basket** _(percent)_

|||CPI|||1993 Survey||
|---|---|---|---|---|---|---|
|_Expenditure Categories_|_Expenditure_<br>_share_|_Tradable_<br>_share_|_Non-_<br>_tradable_<br>_share_|_Expenditure_<br>_share_|<br>_Tradable_<br>_share_|_Non-_<br>_tradable_<br>_share_|
|Food|48.0|47.8|52.8|47.4|35.6|64.4|
|Lodging|7.8||100.0|12.6||100.0|
|Utilities|8.5||100.0|5.8||100.0|
|Household furnishing|3.4|100.0||1.4|100.0||
|Clothinga)|10.1|100.0||6.7|84.6|15.4|
|Transport|6.8|100.0|100.0|7.0|23.2|76.8|
|Vehicles|5.4|81.8|18.2||||
|Household maintenance|0.6|100.0||0.2||100.0|
|Hygiene|1.0|100.0||2.1|100.0||
|Health|0.7|96.6|3.4|4.6|72.8|27.2|
|Education|1.0|29.5|80.5|3.3|41.5|58.5|
|Miscellaneous|6.7|45.7|54.3|1.0||100.0|
|Non-food in kind||||0.2||100.0|
|Remittances||||7.6||100.0|
|Total|100.00|_46.5_|53.5|100.0|32.5|67.6|

a) The clothing category in the 1993 priority survey includes expenses for hairdressers and tailors, which were classified as non-tradable.

**Table 13** Evolution **of the Tradable and Non-tradable Components of the CPIa)**

||_Apr_|_il 1995_|_Janua_|_rv 1996_|
|---|---|---|---|---|
|_Components_|||||
|_of the CPI_|_Tradable_|_Non- tradable_|_Tradable_|_Non- tradable_|
|Food|146.3|150.3|155.5|133.9|
|Total|155.3|139.7|159.3|133.4|

a CPI index is the INS index for "ouvrier, employd qualifid on artisan traditionnel." Base period is October 1992 to November 1993. For the breakdown of posts into tradable and non-tradables, see text.

What are the implications for poverty? To the extent that there is relatively little differentiation in the rise of nontradable and tradable goods prices in the CPI consumption basket, differences in the share of importables in the consumption basket across socioeconomic groups or between the poor and nonpoor will have relatively little influence on poverty outcomes. Moreover, in 1993 there was relatively little difference between the poor and nonpoor population in the share of tradables in total household expenditure (table 14). The nonpoor consume slightly less tradables than the poor, given that they have a higher share of expenditure on lodging. The two factors taken together suggest that in terms 16 Based on the expenditure shares generated by the survey, we found that 35.2 percent of household consumption in 1993 was on tradables, compared to 46.5 percent **in** the CPI (table 12). Remittances, which account for 7 percent of the survey basket, but do not figure into the CPI basket, were classified in the same proportion as the remainder of the consumption basket. The difference in the share of tradables between the CPI basket and the survey basket is due primarily to the fact the share of nontradables in total food expenditure is higher in the survey--75 percent compared with 53 percent in the CPI basket. The reason for the smaller percentage point difference in the price indices for tradables and nontradables in the survey basket is due primarily to the larger share of nontradable food in the survey basket. Because of the large seasonal price increases for starchy food, the index for nontradable food prices was actually greater than that of traded food products in April 1995 though by January 1996 the situation had reversed itself (table 13).

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