Reference metadata describe statistical concepts and methodologies used for the collection and generation of data. They provide information on data quality and, since they are strongly content-oriented, assist users in interpreting the data. Reference metadata, unlike structural metadata, can be decoupled from the data.
Eurostat, the statistical office of the European Union
1.2. Contact organisation unit
C4: Price statistics. Purchasing power parities. Housing statistics
1.3. Contact name
Restricted from publication
1.4. Contact person function
Restricted from publication
1.5. Contact mail address
2920 Luxembourg LUXEMBOURG
1.6. Contact email address
Restricted from publication
1.7. Contact phone number
Restricted from publication
1.8. Contact fax number
Restricted from publication
2.1. Metadata last certified
7 August 2024
2.2. Metadata last posted
7 August 2024
2.3. Metadata last update
7 August 2024
3.1. Data description
The Harmonised Index of Consumer Prices (HICP) gives comparable measures of inflation for the countries and country groups for which it is produced. It is an economic indicator that measures the change over time of the prices of consumer goods and services acquired by households. In other words, it is a set of consumer price indices (CPIs) calculated according to a harmonised approach and a set of definitions as laid down in Regulations and Recommendations.
In addition, the HICP provides the official measure of consumer price inflation in the euro area for the purposes of monetary policy and the assessment of inflation convergence as required under the Maastricht criteria for accession to the euro.
The HICP is available for all EU Member States, Iceland, Norway and Switzerland. In addition to the individual country series there are three country groups: the euro area (EA), the European Union (EU), and the European Economic Area (EEA), the latter covering Iceland and Norway, in addition to the EU. Liechtenstein does not produce HICP and is therefore not included in the EEA HICP aggregate.
The official indices for the country-groups reflect the changing country composition of the EA, the EU and the EEA. The HICP for new Member States is chained into the aggregate indices at the time of accession. For analytical purposes Eurostat also computes country-group indices with stable country composition over time.
HICP for Albania, Montenegro, North Macedonia, Serbia, Türkiye (candidate countries), as well as Kosovo (*) are also published. Their data is flagged with 'd' ('definition differs'), given that its conformity with the methodological HICP requirements has not been evaluated by Eurostat.
A proxy-HICP for the all-items index and main headings is also available for the USA.
National HICPs are produced by National Statistical Institutes (NSIs), while country-group indices (EU, EA and EEA) are produced by Eurostat.
The data are released monthly in Eurostat's database and include price indices and rates of change (monthly, annual and 12-month moving average changes). In addition to the headline 'all-items HICP', over 400 sub-indices for different goods and services and over 30 special aggregates are available, including the HICP at administered prices (HICP-AP).
Every year, with the release of the January data, the relative weights for the indices and the special aggregates (item weights) as well as the individual countries' weight within the country groups (country weights) are published.
The composition of the HICP for administered prices (HICP-AP), i.e. which sub-indices are classified as mainly or fully administered by each Member State, is updated at the same time (more information on HICP-AP can be found under the Specific topics on the web page: Information on data - Harmonised Indices of Consumer Prices (HICP) - Eurostat (europa.eu) (#HICP - administered prices).
Eurostat publishes early estimates, called 'flash estimate', of the euro area overall inflation rate and selected components. These are published monthly, usually on the last working day of the reference month.
The HICP at constant tax rates (HICP-CT) is also published every month and follows the same computation principles as the HICP, but is based on prices at constant tax rates. The comparison with the standard HICP can show the potential impact of changes in indirect taxes, such as value-added tax (VAT) and excise duties, on the overall inflation (more information can be found in the 'HICP-CT Reference methodology document').
Flags
Flags used in the Eurostat online database provide information about the status of the data or a specific data value. The list of used flags can be found in the web page Database - Eurostat (europa.eu), above the tree, through the 'i' box 'information on the database' and then 'Flags and special values' topic.
(*) Under United Nations Security Council Resolution 1244/99.
3.2. Classification system
The HICP uses the European Classification of Individual Consumption according to Purpose (ECOICOP).
The structure of the ECOICOP classification has five levels:
Level 1: All-items index – Overall index
Level 2: 12 Divisions – 2-digit codes
Level 3: 47 Groups – 3-digit codes
Level 4: 117 Classes – 4-digit codes
Level 5: 303 Sub-classes – 5-digit codes
The HICP components are classified according to the 12 ECOICOP divisions:
00. All-items (or total)
01. Food and non-alcoholic beverages
02. Alcoholic beverages and tobacco
03. Clothing and footwear
04. Housing, water, electricity, gas and other fuels
05. Furnishings, household equipment and routine maintenance of the house
06. Health
07. Transport
08. Communication
09. Recreation and culture
10. Education
11. Restaurants and hotels
12. Miscellaneous goods and services
Additionally, Eurostat produces special aggregates that are derived from a selection of sub-indices. For example, the special aggregate 'Energy' includes all the energy related sub-indices; most of them from division 04, but also 'Fuels and lubricants for personal transport equipment' from division '07. Education, health and social protection' includes sub-indices from divisions 06, 10 and 12. Currently, Eurostat publishes over 30 special aggregates. The following are the four main special aggregates of the all-items HICP:
Energy
Food, alcohol and tobacco
Non-energy industrial goods
Services
In December 2016, Eurostat started publishing ECOICOP indices at sub-class (5-digit) level. Until then only the class (4-digit) level was available. For many countries, back series of the ECOICOP 5-digit level indices are not available before 2016.
The special aggregates and the HICP-APs are calculated on the basis of the ECOICOP 5-digit level starting from the index for January 2017.
3.3. Coverage - sector
The HICP is a consumer price index, that is, it covers the consumption expenditure of the household sector.
This last dataset also includes data on the differences between the monthly rates of HICP and HICP-CT.
3.5. Statistical unit
Each published index or rate of change refers to the 'household final monetary consumption expenditure' of the corresponding geographical entity.
3.6. Statistical population
The target universe is the 'household final monetary consumption expenditure' (HFMCE) within the economic territories of the countries compiling the HICP. The economic territory of the Member State follows the definition in paragraph 2.05 of Annex A to the European System of Accounts (ESA 2010), with the exception that the extraterritorial enclaves situated within the boundaries of the Member State are included and the territorial enclaves situated in the rest of the world are excluded. Households as referred to in points (a) and (b) of paragraph 2.119 of Annex A to ESA 2010 include all individuals or groups of individuals, irrespective of the type of area in which they live, their position in the income distribution and their nationality or residence status.
The HICP comprises all products and services purchased in monetary transactions by households, both resident and non-resident (i.e 'domestic concept'), within the territory of a country. Some categories of ECOICOP are excluded from the HICP coverage:
Kosovo (under United Nations Security Council Resolution 1244/99)
USA (proxy-HICP)
3.8. Coverage - Time
The HICP is published since March 1997 and covers the time period from January 1996 onwards. See point 12.3 on 'Completeness' for more information.
For most countries, the HICP-CT is published since 2002.
3.9. Base period
The main index reference period currently used is 2015. The index series with reference periods 2005 and 1996 are included in dataset prc_hicp_midx. Those previous reference periods can be selected in the dataset under the option 'Unit of measure’.
Inflation rates calculated from the 2015=100 series can differ from the rates calculated from the 2005=100 series or 1996=100 series due to rounding.
Index (2015=100, 2005=100, 1996=100).
Month (indices and rates).
Year (weights, indices and rates).
6.1. Institutional Mandate - legal acts and other agreements
Legal acts
Regulation (EU) 2016/792 of the European Parliament and of the Council of 11 May 2016 on harmonised indices of consumer prices and the house price index repeals Council Regulation (EC) No 2494/95 of 23 October 1995 is the legal basis for establishing a harmonised methodology for the compilation of the HICP, the euro area and the EU inflation figures.
Commission Implementing Regulation (EU) 2020/1148 lays down the methodological and technical specifications for the HICP and HICP-CT and consolidates and modernises (and repeals) all previous implementing legislation.
Regulation (EC) No 223/2009 on European statistics (recital 24 and Article 20(4)) of 11 March 2009 (OJ L 87, p. 164), stipulates the need to establish common principles and guidelines ensuring the confidentiality of data used for the production of European statistics and the access to those confidential data with due account for technical developments and the requirements of users in a democratic society.
7.2. Confidentiality - data treatment
The confidential data transmitted are used exclusively for statistical purposes and only accessible to staff working in statistical activities within their specific domain of work, according to Article 22(5) of the Regulation (EC) No 223/2009 of the European Parliament and of the Council, of 11 March 2009, on the transmission of data subject to statistical confidentiality to the Statistical Office of the European Communities.
If Member States transmits data with a confidentiality flag or an embargo date, these data are not disseminated until the confidentiality flag is removed in a subsequent data transmission or the embargo expired.
See also point 8.3 on rules governing user access.
8.1. Release calendar
The HICP release schedule is publicly available and published on Eurostat's website each year, around the end of October or early November, for the full following year.
In line with the Community legal framework and the European Statistics Code of Practice (June 2018) Eurostat disseminates European statistics on Eurostat's website (see point 10 - 'Accessibility and clarity') respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably. The detailed arrangements are governed by the Eurostat protocol on impartial access to Eurostat data for users (January 2014).
The data are disseminated monthly, around the middle of the month that follows the reference month.
The flash estimate for the euro area and selected components are usually disseminated on the last working day of the reference month or shortly thereafter.
In principle, no intermediate data updates are done outside the pre-agreed calendar update dates (see release schedule under point 8.2).
Eurostat must ensure that the statistical practices used to compile the national HICP are compliant with the HICP methodological requirements and that good practices in the field of consumer price indices are being followed. To that end, Eurostat undertakes compliance monitoring visits to Member States during which it reviews HICP methodological issues.
Given the importance of the accuracy, reliability and comparability of the HICP, Eurostat systematically monitors the compliance of Member States against the existing legal framework, established HICP recommendations and other guidelines and good practices in the field of consumer price statistics (CPI). The compliance monitoring is based on detailed documentation, analysis of data and methods as well as visits to NSIs. Eurostat publishes the findings and follow-up reports available on Eurostat's web page: Quality - Harmonised Indices of Consumer Prices (HICP)
There is continuous work to improve the HICP quality and comparability across countries developed through several Task Forces and the Price Statistics Working Group.
In addition to being a general measure of inflation, the HICP may also be used in the areas of:
wages, social benefits, contracts and bonds indexation;
economic forecasting and analysis;
measuring specific price trends;
accounting purposes and deflating other series;
inflation targeting by central banks;
cross-country economic comparisons.
The euro area (EA) index is used by the European Central Bank (ECB) as the inflation target for monetary policy. The ECB and the European Commission's Directorate-General for Economic and Financial Affairs (DG ECFIN) use the HICP for assessing price stability and price convergence required for entry into the European Monetary Union.
Other users include: National Central Banks, OECD, IMF, financial institutions, economic analysts, the media and the public at large.
12.2. Relevance - User Satisfaction
No information.
12.3. Completeness
HICP indices and weights are available since January 1996.
Specific data availability list of ECOICOP indices not starting in January 1996:
Bulgaria: since December 1996
Czechia: 3 and 4-digit ECOICOP indices: since December 1999. (All-items and 2-digit ECOICOP indices since January 1996)
Croatia: All-items and 2-digit ECOICOP indices since January 1998. (3 and 4-digit ECOICOP indices: since December 2004)
Hungary: since December 2000. (All-items and 2-digit ECOICOP indices since January 1996)
Romania: since December 2000. (All-items and 2-digit ECOICOP indices since January 1996)
Slovenia: since December 1999. (All-items and 2-digit ECOICOP indices since January 1996)
Switzerland: since December 2004
Albania: since December 2015
Montenegro: since December 2014
North Macedonia: since December 2004
Serbia: since December 2005
Kosovo: since December 2015
US (proxy-HICP): since 2001 for the all-items and 2-digit ECOICOP (main headings)
13.1. Accuracy - overall
The accuracy of the source data is monitored by assessing the methodological soundness of price and weight sources and the adherence to the methodological recommendations.
There is a variety of data sources both for weights (National Accounts data, Household Budget Survey data, etc.) and prices (visits to local retailers and service providers and central collection via mail, telephone, e-mail, the internet, transaction data, web scraped data, administrative data).
The type of survey and the price collection methods ensure sufficient coverage and timeliness. The outlets from which prices are collected are chosen to represent the existing trade and services networks and they are usually based on three main criteria:
Popularity with consumers;
Significant turnover from consumer sales; and
Availability of goods and services included in the HICP basket.
All private households in the economic territory of the country are covered, both resident and non-resident, irrespective of their income.
The HICP is a statistical estimate that is subject to sampling errors because it is based on a sample of consumer prices and household expenditures, not on the complete universe of all prices/expenditures in an economy.
The NSIs responsible for the compilation of national indices generally do not produce numerical estimates of HICP sampling errors, which are difficult to quantify due to the complexity of price index structures and the common use of non-probability sampling. Consequently, no estimate for a global HICP sampling error is available.
The NSIs try to reduce the sampling errors by using a sample of consumer prices that is as large as possible, under their resource constraints. In order to minimise the variance of the all-items index, the NSIs often use models that optimise the allocation of resources by indicating the number of prices that should be observed in each geographical area and each item category.
Several countries have in recent years replaced sampling procedures by the use of transaction data that provide data for the universe of transactions taking place within an outlet or chain of outlets. This reduces sampling error.
13.3. Non-sampling error
The HICP non-sampling errors are not quantified. Eurostat and the NSIs try to reduce non-sampling errors through continuous methodological improvements and survey process improvements, such as computer assisted price collection that can help avoid coding and typing errors.
14.1. Timeliness
The full set of HICPs is published each month according to a pre-announced schedule, usually between 15 and 18 days after the end of the reference month. Each year, the January news release is published towards the end of February to allow for the annual update of the weights of individual product groups and the relative country weights of Members States in the country-group aggregates.
The euro area flash estimate is published on the last working day of the reference month or shortly after that.
14.2. Punctuality
The HICP for the euro area and the EU have always been published on the scheduled release dates.
The release schedule is agreed with NSIs around mid-September each year, for the following year.
15.1. Comparability - geographical
Definitions and classifications have been harmonised in a series of legal acts. The HICP is produced based on minimum standards that may be applied with some flexibility as long as the effect on the value of the indicator remains below 0.1 percentage point on average over one year against the previous year (Article 4 of Regulation 2016/792 of the European Parliament and the Council).
The continuous work carried out for the harmonisation of methodologies across the EU Member States is expected to further improve the comparability of the HICP across countries.
15.2. Comparability - over time
HICP data are considered to be comparable over time. However, due to several methodological improvements since the start of the HICP, some breaks in the time series emerge. In such cases, if the needed data are available, back calculations may be performed and historical series revised, although this happens rarely.
See also point 17, on revisions.
15.3. Coherence - cross domain
There is only one set of HICPs available. Identical data are shown in several data collections. The methods and results may differ compared to national CPIs.
15.4. Coherence - internal
The HICPs are internally coherent. Higher level aggregations are derived from detailed indices according to well-defined procedures.
In practice, HICP data are rarely revised, apart from finalising provisional estimates.
17.2. Data revision - practice
General
The HICP data are released even if missing for certain countries or flagged as provisional or of low reliability. As set in Article 16 of Regulation 2020/1148, provisional figures are usually finalised in the following month.
All aggregates (including the European ones) and HICP components are updated for consistency with new country data. Data are added, overwriting the previously published figures.
The impact of major revisions is communicated with the first publication of data affected by such changes through an explanatory note in the euro indicators inflation news release and/or the HICP dedicated section on Eurostat’s website.
Timing of revisions
The HICP data are released monthly. The validated revised data are disseminated according to the HICP release schedule set by Eurostat.
According to the legislation in force, countries submit to Eurostat revisions arising from mistakes as quickly as possible and those are incorporated at the next publication. Major revisions could take up to several months to be incorporated.
For the countries of the euro area and other publishing estimates, the HICP data is released bi-monthly. Differences between the flash estimate data (flagged ‘e’) and the monthly HICP are not considered a revision.
First published data
The data as first published on the day of the HICP monthly releases are available in the 'HICP – First published data' (prc_hicp_fp) dataset. It includes the monthly HICP indices for all countries, as well as the HICP monthly and annual rates (selectable under 'Unit of measure'). Data are available starting from January 2016, when the dataset was first set up.
Latest major revisions
With the publication of the January 2019 HICP, Germany’s methodology for package holidays changed. The previously published index for package holidays for Germany was revised back to 2015 using the new methodology. As a consequence, aggregates that include German package holidays were also revised.
Product selection, sampling and data collection are carried out by the NSIs.
The main data source for the Household Final Monetary Consumption Expenditure (HFMCE) used for the compilation of the weights are National Accounts data (from y-2 or y-1) further complemented with data from the Household Budget Survey and other sources. The HFMCE is adjusted to exclude narcotics, imputed rentals for housing, games of chance, prostitution, life insurance, health insurance, FISIM, net purchases abroad and pensions and are price updated to December of the previous year (y-1).
Price data is collected by visits to local retailers and service providers and central collection via mail, telephone, email, internet, automatic transmission of transaction data, web scraping, from private and administrative data sources.
HICPs are based on the continuous measurement of prices for a sample of specified goods and services, in selected locations and outlets. The HICP samples are sufficiently large and representative of consumption behaviours to yield reliable and comparable results, taking into account the national diversity of products. The HICP samples are kept updated to remain representative of the target universe. Every year the HICP incorporates new products that achieved a share of over one part per thousand of total consumer expenditure and is kept relevant throughout the year with the inclusion of new representative products and exclusion of obsolete ones.
As products or outlets disappear from the market, they are replaced with representative and comparable ones. Given that the HICP aims at measuring 'pure' price changes, it should be unaffected by changes in the quality of goods and services. Therefore, when a product needs to be replaced, prices need to be adjusted for such quality changes. Differences among quality adjustment procedures in Member States and other countries using HICP could give rise to incomparability in results. For example, the features of a car model released in the current year with that of the same car model but released five years before are substantially different. Thus, to make a price comparison the ‘value’ of new features is used to adjust the prices.
18.2. Frequency of data collection
Price collection takes place across at least one working week. When products are known to be volatile, e.g. to show sharp and irregular price changes within the same month, prices are collected over a period of more than one working week as defined in Article 8 of Commission Implementing Regulation (EU) 2020/1148.
18.3. Data collection
HICP data, both indices and weights, are provided by the NSIs (see national reference metadata list at the top of this document.
Data validation is done by the NSIs; additional quality and consistency checks are also carried out by Eurostat.
18.5. Data compilation
The country-group indices for the euro area, EU and EEA, as well as special aggregates are calculated by Eurostat using the HICP data provided by the countries. The computation consists of three main steps:
Price changes since December of the previous year are derived from the reported HICP index values;
The weighted average of these price changes is computed using the weights of the countries and sub-indices concerned. The weight of a country is its share of the HFMCE in the total of the country group;
The price change of the country group since December of the previous year is chain-linked to the index of December of the previous year in order to provide a series with a common reference period.
The euro area index is compiled as a weighted average of the Member States' indices whose currency is the euro. The country weights are derived from National Accounts data for the HFMCE expressed in euros. The index is computed as an annual chain index allowing for country weights to change each year and for adding new Member States as they join the euro area. For the EU and EEA HICP indices, the euro area is treated as a single entity to which data for the other countries is then added (the weights are derived from National Accounts data, converted into purchasing power standards). Note that for any mid-year changes in the composition, chain-linking was also added to the specific month to maintain the correct country coverage for both the EU and EEA aggregates.
18.6. Adjustment
Data are not seasonally adjusted.
Country-specific information
Links to the detailed country-specific information can be found on the box 'National Metadata' at the top of this document.
As fully described in point 17.2 'Data revision - practice', in 2019, a methodological change for the package holidays data for Germany resulted in revisions on previously published data.
2019/2020
Publishing statistics after the United Kingdom leaves the EU
The Harmonised Index of Consumer Prices (HICP) gives comparable measures of inflation for the countries and country groups for which it is produced. It is an economic indicator that measures the change over time of the prices of consumer goods and services acquired by households. In other words, it is a set of consumer price indices (CPIs) calculated according to a harmonised approach and a set of definitions as laid down in Regulations and Recommendations.
In addition, the HICP provides the official measure of consumer price inflation in the euro area for the purposes of monetary policy and the assessment of inflation convergence as required under the Maastricht criteria for accession to the euro.
The HICP is available for all EU Member States, Iceland, Norway and Switzerland. In addition to the individual country series there are three country groups: the euro area (EA), the European Union (EU), and the European Economic Area (EEA), the latter covering Iceland and Norway, in addition to the EU. Liechtenstein does not produce HICP and is therefore not included in the EEA HICP aggregate.
The official indices for the country-groups reflect the changing country composition of the EA, the EU and the EEA. The HICP for new Member States is chained into the aggregate indices at the time of accession. For analytical purposes Eurostat also computes country-group indices with stable country composition over time.
HICP for Albania, Montenegro, North Macedonia, Serbia, Türkiye (candidate countries), as well as Kosovo (*) are also published. Their data is flagged with 'd' ('definition differs'), given that its conformity with the methodological HICP requirements has not been evaluated by Eurostat.
A proxy-HICP for the all-items index and main headings is also available for the USA.
National HICPs are produced by National Statistical Institutes (NSIs), while country-group indices (EU, EA and EEA) are produced by Eurostat.
The data are released monthly in Eurostat's database and include price indices and rates of change (monthly, annual and 12-month moving average changes). In addition to the headline 'all-items HICP', over 400 sub-indices for different goods and services and over 30 special aggregates are available, including the HICP at administered prices (HICP-AP).
Every year, with the release of the January data, the relative weights for the indices and the special aggregates (item weights) as well as the individual countries' weight within the country groups (country weights) are published.
The composition of the HICP for administered prices (HICP-AP), i.e. which sub-indices are classified as mainly or fully administered by each Member State, is updated at the same time (more information on HICP-AP can be found under the Specific topics on the web page: Information on data - Harmonised Indices of Consumer Prices (HICP) - Eurostat (europa.eu) (#HICP - administered prices).
Eurostat publishes early estimates, called 'flash estimate', of the euro area overall inflation rate and selected components. These are published monthly, usually on the last working day of the reference month.
The HICP at constant tax rates (HICP-CT) is also published every month and follows the same computation principles as the HICP, but is based on prices at constant tax rates. The comparison with the standard HICP can show the potential impact of changes in indirect taxes, such as value-added tax (VAT) and excise duties, on the overall inflation (more information can be found in the 'HICP-CT Reference methodology document').
Flags
Flags used in the Eurostat online database provide information about the status of the data or a specific data value. The list of used flags can be found in the web page Database - Eurostat (europa.eu), above the tree, through the 'i' box 'information on the database' and then 'Flags and special values' topic.
(*) Under United Nations Security Council Resolution 1244/99.
This last dataset also includes data on the differences between the monthly rates of HICP and HICP-CT.
Each published index or rate of change refers to the 'household final monetary consumption expenditure' of the corresponding geographical entity.
The target universe is the 'household final monetary consumption expenditure' (HFMCE) within the economic territories of the countries compiling the HICP. The economic territory of the Member State follows the definition in paragraph 2.05 of Annex A to the European System of Accounts (ESA 2010), with the exception that the extraterritorial enclaves situated within the boundaries of the Member State are included and the territorial enclaves situated in the rest of the world are excluded. Households as referred to in points (a) and (b) of paragraph 2.119 of Annex A to ESA 2010 include all individuals or groups of individuals, irrespective of the type of area in which they live, their position in the income distribution and their nationality or residence status.
The HICP comprises all products and services purchased in monetary transactions by households, both resident and non-resident (i.e 'domestic concept'), within the territory of a country. Some categories of ECOICOP are excluded from the HICP coverage:
Kosovo (under United Nations Security Council Resolution 1244/99)
USA (proxy-HICP)
Month (indices and rates).
Year (weights, indices and rates).
The accuracy of the source data is monitored by assessing the methodological soundness of price and weight sources and the adherence to the methodological recommendations.
There is a variety of data sources both for weights (National Accounts data, Household Budget Survey data, etc.) and prices (visits to local retailers and service providers and central collection via mail, telephone, e-mail, the internet, transaction data, web scraped data, administrative data).
The type of survey and the price collection methods ensure sufficient coverage and timeliness. The outlets from which prices are collected are chosen to represent the existing trade and services networks and they are usually based on three main criteria:
Popularity with consumers;
Significant turnover from consumer sales; and
Availability of goods and services included in the HICP basket.
All private households in the economic territory of the country are covered, both resident and non-resident, irrespective of their income.
The country-group indices for the euro area, EU and EEA, as well as special aggregates are calculated by Eurostat using the HICP data provided by the countries. The computation consists of three main steps:
Price changes since December of the previous year are derived from the reported HICP index values;
The weighted average of these price changes is computed using the weights of the countries and sub-indices concerned. The weight of a country is its share of the HFMCE in the total of the country group;
The price change of the country group since December of the previous year is chain-linked to the index of December of the previous year in order to provide a series with a common reference period.
The euro area index is compiled as a weighted average of the Member States' indices whose currency is the euro. The country weights are derived from National Accounts data for the HFMCE expressed in euros. The index is computed as an annual chain index allowing for country weights to change each year and for adding new Member States as they join the euro area. For the EU and EEA HICP indices, the euro area is treated as a single entity to which data for the other countries is then added (the weights are derived from National Accounts data, converted into purchasing power standards). Note that for any mid-year changes in the composition, chain-linking was also added to the specific month to maintain the correct country coverage for both the EU and EEA aggregates.
Product selection, sampling and data collection are carried out by the NSIs.
The main data source for the Household Final Monetary Consumption Expenditure (HFMCE) used for the compilation of the weights are National Accounts data (from y-2 or y-1) further complemented with data from the Household Budget Survey and other sources. The HFMCE is adjusted to exclude narcotics, imputed rentals for housing, games of chance, prostitution, life insurance, health insurance, FISIM, net purchases abroad and pensions and are price updated to December of the previous year (y-1).
Price data is collected by visits to local retailers and service providers and central collection via mail, telephone, email, internet, automatic transmission of transaction data, web scraping, from private and administrative data sources.
HICPs are based on the continuous measurement of prices for a sample of specified goods and services, in selected locations and outlets. The HICP samples are sufficiently large and representative of consumption behaviours to yield reliable and comparable results, taking into account the national diversity of products. The HICP samples are kept updated to remain representative of the target universe. Every year the HICP incorporates new products that achieved a share of over one part per thousand of total consumer expenditure and is kept relevant throughout the year with the inclusion of new representative products and exclusion of obsolete ones.
As products or outlets disappear from the market, they are replaced with representative and comparable ones. Given that the HICP aims at measuring 'pure' price changes, it should be unaffected by changes in the quality of goods and services. Therefore, when a product needs to be replaced, prices need to be adjusted for such quality changes. Differences among quality adjustment procedures in Member States and other countries using HICP could give rise to incomparability in results. For example, the features of a car model released in the current year with that of the same car model but released five years before are substantially different. Thus, to make a price comparison the ‘value’ of new features is used to adjust the prices.
The data are disseminated monthly, around the middle of the month that follows the reference month.
The flash estimate for the euro area and selected components are usually disseminated on the last working day of the reference month or shortly thereafter.
In principle, no intermediate data updates are done outside the pre-agreed calendar update dates (see release schedule under point 8.2).
The full set of HICPs is published each month according to a pre-announced schedule, usually between 15 and 18 days after the end of the reference month. Each year, the January news release is published towards the end of February to allow for the annual update of the weights of individual product groups and the relative country weights of Members States in the country-group aggregates.
The euro area flash estimate is published on the last working day of the reference month or shortly after that.
Definitions and classifications have been harmonised in a series of legal acts. The HICP is produced based on minimum standards that may be applied with some flexibility as long as the effect on the value of the indicator remains below 0.1 percentage point on average over one year against the previous year (Article 4 of Regulation 2016/792 of the European Parliament and the Council).
The continuous work carried out for the harmonisation of methodologies across the EU Member States is expected to further improve the comparability of the HICP across countries.
HICP data are considered to be comparable over time. However, due to several methodological improvements since the start of the HICP, some breaks in the time series emerge. In such cases, if the needed data are available, back calculations may be performed and historical series revised, although this happens rarely.
