Harmonised index of consumer prices (HICP) (prc_hicp)

National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Statistical Service of Cyprus — CYSTAT.

Time Dimension: 2017-A0

Data Provider: CY1

Data Flow: HICP_ESMS_A


Eurostat metadata
Reference metadata
1. Contact
2. Metadata update
3. Statistical presentation
4. Unit of measure
5. Reference Period
6. Institutional Mandate
7. Confidentiality
8. Release policy
9. Frequency of dissemination
10. Accessibility and clarity
11. Quality management
12. Relevance
13. Accuracy
14. Timeliness and punctuality
15. Coherence and comparability
16. Cost and Burden
17. Data revision
18. Statistical processing
19. Comment
Related Metadata
Annexes (including footnotes)
 



For any question on data and metadata, please contact: EUROPEAN STATISTICAL DATA SUPPORT

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1. Contact Top
1.1. Contact organisation

Statistical Service of Cyprus — CYSTAT.

1.2. Contact organisation unit

Not available.

1.5. Contact mail address

Michalakis Karaolis Str.

1444 Nicosia

CYPRUS


2. Metadata update Top
2.1. Metadata last certified 04/04/2017
2.2. Metadata last posted 30/03/2016
2.3. Metadata last update 04/04/2017


3. Statistical presentation Top
3.1. Data description

Harmonised indices of consumer prices (HICPs) give comparable measures of inflation for the countries and country groups they are produced. They are economic indicators that measure the change over time of the prices of consumer goods and services acquired by households. In other words they are a set of consumer price indices (CPIs) calculated according to a harmonised approach and a single set of definitions.

3.2. Classification system

COICOP/HICP (Classification of Individual Consumption by Purpose adapted to the needs of Harmonised Indices of Consumer Prices). 

From January 2014 and onwards, the lowest level of detail for the classification used in CPI/HICP is COICOP 5-digits.

3.3. Coverage - sector

CYSTAT has been producing HICP since 1996 and in general the Commission Regulation No 1688/98 on geographic and population coverage is been applied satisfactorily. 

The CPI/HICP comprise purchases by households within the territory of Cyprus; those by both resident and non-resident households (i.e. 'domestic concept').

In particular, HICP is based on the prices of goods and services available for purchase in the economic territory of the island for the purposes of directly satisfying consumer needs; those by both resident and non-resident households.

3.4. Statistical concepts and definitions

The published is as follows:

1. Monthly data:

  • Indices(HICP 2015=100, HICP at constant taxes 2015=100 is only published on EUROSTAT's website)
  • Annual rates of change
  • Monthly rates of change
  • 12-month average rate of change

2. Annual data:

  • Average index and rate of change
  • Country weights
  • Item weights
3.5. Statistical unit

Each published index or rate of change refers to the 'final monetary consumption expenditure' of the whole household sector of the corresponding geographical entity.

3.6. Statistical population

The target statistical universe is the 'household final monetary consumption expenditure' (HFMCE) within the economic territories of the countries compiling the HICP. The household sector to which the definition refers includes all individuals or groups of individuals irrespective of, in particular, the type of area in which they live, their position in the income distribution and their nationality or residence status. These definitions follow the national accounts concepts in the European System of Accounts (ESA 2010).

HICPs comprise all purchases by households within the territory of a country; those by both resident and non-resident households (i.e. 'domestic concept'). HICPs cover the prices paid for goods and services in monetary transactions. The prices measured are those actually faced by consumers. The HICPs exclude interest and credit charges, regarding them as financing costs rather than consumption expenditure.

3.7. Reference area

The price collection of the basket of goods and services covers all four cities under the effective control of the Government of the Republic of Cyprus and two tourist regions.

3.8. Coverage - Time

HICPs for Cyprus are available from January 1997 (earlier figures are estimated on the basis of the national CPI).

3.9. Base period

The index reference period was 1996=100 until December 2005 and for the period between January 2006 to December 2015 the reference period was 2005=100.

As of January 2016, the index reference period is 2015=100.


4. Unit of measure Top

Following units are used:

  • Index (actually unitless, i.e. it is the ratio of the price of the basket in a given year to the price in the base year multiplied by 100. However, the HICP can be thought of as the amount the average consumer would have to spend in a given year to buy the same basic goods and services that one would have to pay 100 monetary units for in the base period);
  • Percentage change on the same period of the previous year (rates);
  • Percentage change on the previous period (rates);
  • Percentage share of the total (weights).


5. Reference Period Top

CPI/HICP prices for goods are entered for the month in which they are observed and CPI/HICP prices for services are entered for the month in which the consumption of the service at the observed prices can be commerce.

The reference period for HICP and CPI was 2005=100 for the last 10 years (from January 2006 until December 2015) but the new reference period 2015=100 has been applied with the production of the indices of January 2016 and onwards.


6. Institutional Mandate Top
6.1. Institutional Mandate - legal acts and other agreements

Harmonised Indices of Consumer Prices (HICPs) are harmonised inflation figures required under the Treaty on the Functioning of the European Union. Council Regulation (EC) No 2494/95 of 23 October 1995 (OJ L 257/1) sets the legal basis for establishing a harmonised methodology for the compilation of the HICPs, the MUICP and the EICP.

Under this Regulation, the Commission has brought forward detailed Regulations establishing the specific rules governing the production of harmonised indices. To date, 18 specific regulations governing issues as quality of weights, transmission and dissemination of sub-indices, coverage of goods and services, geographical and population coverage, minimum standards for the treatment of tariffs, insurance, health, education and social protection services, timing of entering prices, treatment of price reductions, treatment of service charges, revisions policy, new index reference period, temporal coverage of price collection and sampling, replacement and quality adjustment procedures, and seasonal items have been adopted. A recommendation on the treatment of health care has also been published.

All relevant regulations as well as further methodological details can be found in the HICP section on Eurostat's website under Methodology => Legislation

6.2. Institutional Mandate - data sharing

Not available.


7. Confidentiality Top
7.1. Confidentiality - policy

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.

According to article 13.5(a) of the Statistics Law 2000 and article 22 of the Commission regulation 223/2009, the officials working for CYSTAT or Eurostat have the obligation not to disclose information which they have received during the conduct of a survey. This obligation continues to exist after the termination of their professional relationship with the service.

7.2. Confidentiality - data treatment

According to the Commission regulation 223/2009 transmission of confidential data only takes place for the efficient development, production and dissemination of European statistics or for increasing the quality of the European statistics.


8. Release policy Top
8.1. Release calendar

The HICP and the indices for the 12 main categories of goods and services are published on the first Tuesday that follows the publication of the CPI, of each month, and this date is already pre-announced in the release calendar on the website of the Statistical Service of Cyprus.

8.2. Release calendar access

Eurostat's website

CYSTAT´s website

8.3. Release policy - user access

CYSTAT'„s dissemination policy is ruled by the Statistics Law and by some main principles. According to the Statistics Law the Statistical Service is responsible for prescribing the time and manner of dissemination of the results of its surveys or work in such a way that all users have equal and simultaneous access. CYSTAT has rendered its website as the main source of statistical information, without this entailing the suppression of other printed means of dissemination. CYSTAT'„s website is available to everyone with Internet access, 24 hours/day, 7 days/week.


9. Frequency of dissemination Top

Harmonised consumer price indices are produced monthly.


10. Accessibility and clarity Top
10.1. Dissemination format - News release

The publication of the HICP is made with an announcement to the media, in the Official Government Gazette and on the website of the Statistical Service of Cyprus.

10.2. Dissemination format - Publications

The 12 main COICOP groups of the HICP are published on Thuesday followed the first Thursday of each month in the local press and the website of the Statistical Service of Cyprus (www.mof.gov.cy/cystat).

10.3. Dissemination format - online database

HICP database is the official Eurostat database.

10.4. Dissemination format - microdata access

Not available at the moment.

10.5. Dissemination format - other

The publication of the HICP is also made with an announcement to the media and in the Official Government Gazette.

10.6. Documentation on methodology

On CYSTAT website is published a HICP metada document both in greek and english language.

In addition, CYSTAT has created an HICP inventory for the implementation of the Grant titled as "Practical and Methodological Improvements in Price Statistics", but currently the Inventory is not available to the users.

10.7. Quality management - documentation

See Eurostat's Compliance Monitoring Report of 2006.

At present no quality reports are issued for the HICP compilation procedure but CYSTAT fills in and updates regularly the metadata file requested by EUROSTAT.


11. Quality management Top
11.1. Quality assurance

In general, the HICP’s concepts and methodology are firmly applied. 

Practical controls on the quality of the data

  • general guidelines along with some practical examples concerning price collection are available to the price collectors, in order to ensure a uniform policy for dealing the same problems,
  • for all of the products/ services included in CPI/HICP basket a predetermined maximum period for collecting the corresponding prices has been set by the central office,
  • price collectors are instructed to record all data (price, product/service description, store, unit) to the network at the end of each week and thus significant information is available to the central office for a first assessment,
  • all the prices are compared to the corresponding prices of the previous month and if the two prices differ by 30% then the price is rechecked and verified except in the category Transport where larger deviations in the prices are expected and thus the prices are rechecked if they differ by 10%.
  • joined meetings with price collectors and the central office take place on a frequent basis where price issues are discussed in detail securing a common treatment of the problems.

Once the index is calculated at the city level, the index for each item is compared to the corresponding index of the previous month. As a final step, the national item index is also reviewed.

11.2. Quality management - assessment

Specific procedures are followed in order to ensure the quality of the index. The central office has most of the control of all the stages for the index calculation and continous checkes are applied on raw data (collected prices) in order to ensure the quality of the overall index. In particular, the following checks are applied:

  • Check for completeness of delivered prices by region and COICOP subcategories and detection of missing observations;
  • Checks for similar price changes since changes in the same COICOP subcategories are expected to be noted across all regions (coherence in price movements across the country). Specifically, the indices at region level (at the ECOICOP 5-level) are compared to the corresponding index of the previous month allowing fluctuations of 15%, otherwise are rechecked and justified;
  • Check for representativeness in case of outlet changes or product replacements;
  • Check that the quality adjustment measures applied are in accordance with the HICP manual (EUROSTAT);
  • Control of seasonal items’ prices, detection of outliers and elimination;
  • Special care of the Hotel prices since their weight is important  in the HICP compilation;
  • All the prices are compared to the corresponding prices of the previous month and if the two prices differ by 30% then the price is rechecked and verified except in the category Transport where larger deviations in the prices are expected and thus the prices are rechecked if they differ by 10%.

The sharp discrepancies noted in the prices are always justified in order to proceed with the production of the index.

The  trend line of specific timeseries of HICP sub-indices such as Energy, Services, Un-processed food, Processed food and Non-energy industrial goods are studied. 


12. Relevance Top
12.1. Relevance - User Needs

The main users of the HICP/CPI indices, besides EUROSTAT, are the Cyprus' Central Bank, the Ministry of Finance and other sections of CYSTAT such as National Accounts, who they require specific statistical output and calculations based on HICP data. Also, the public media and economic analysts are interested in the HICP as a general measure of inflation and for comparability reasons with the other EU countries. The general index and the level of inflation as measured by the HICP, is published every month in the newspapers and announced in main newscast of some tv-stations.

 CYSTAT tries to meet all user needs and to provide them with the necessary information, but in the cases where users request access in the collected prices (raw data) then their request is carefully studied (the purpose and usage of the raw data are evaluated). At present, no access to raw prices is given. 

12.2. Relevance - User Satisfaction

User satisfaction is monitored on a yearly basis through a user satisfaction survey  which is conducted on line, on the website of CYSTAT.

The questionnaire measures users satisfaction from all the services and statistical outputs provided by the website of CYSTAT and does not refer to HICP users exclusively. 

12.3. Completeness

All COICOP indices at 4-digit and 5-digit level (since January 2014) are produced.


13. Accuracy Top
13.1. Accuracy - overall

The HICP is calculated on the basis of approximately 780 goods and services for which 9000 prices are collected from 1644 outlets. The majority of the prices are recorded monthly, except the prices of certain seasonal products such as vegetables, fruits, meat and fuel, whose prices are collected every week (every Thursday). The prices of goods and services that do not change every month are recorded less frequently, such as the prices of Water supply, Sewerage collection, Pharmaceutical products, Telephone and Internet services and financial services. 

13.2. Sampling error

The HICPs are statistical estimates that are subject to sampling errors because they are based on observing and exploiting data from a sample of consumer prices and household expenditures, and not the complete universe of all prices/expenditures. The sampling errors are induced by the sample design thus can be summarized in the following:

  • Errors in determining a representative sample of outlets;
  • Errors in determining a representative sample of items to be priced in each COICOP sub-class;
  • Errors in the estimate of quality adjustment in the case of an item replacement;
  • Error in compiling HICP weights, since HBS is a sample survey that is subject to sampling error.

The sampling errors are reduced by selecting a large and representative sample of consumer prices from a stratified sample, given resource constraints.  CYSTAT sample of outlets covers all the economic territory of the island since 2005 and all kind of type of outlets, thus reducing the sampling error. CYSTAT has increased the selected prices per item to 3 since 2002 and from 2011 and onwards has added a fourth retailer/price for specific products in the Nicosia region (biggest regional weight), that have significant weight in the index compilation and their prices are more likely to vary from one month to the other. 

13.3. Non-sampling error

For the HICP non-sampling errors are not quantified. CYSTAT tries to reduce non-sampling errors through continuous methodological improvements and survey process improvements. In particular,

  • Coding and typing errors  have been significantly reduced since from 2014 and onwards prices and product/services characteristics are entered electronically and are accessible to the central office at any time of the collection period,
  • The personnel working at the prices collection stage is very well experience and properly guided (written instructions are provided to them with practical examples) in order to be able to deal with prices issues
  • The joined meeting with the price collectors are very helpful for applying a consistent policy across the same problems,
  • CYSTAT applies all EUROSTAT recommendations on the treatment of specific COICOP subcategories the sooner they are finalized.


14. Timeliness and punctuality Top
14.1. Timeliness

The following table shows the datasets provided to EUROSTAT, their periodicity and timeliness.

 

Datasets sent to EUROSTAT

Periodicity

Timeliness

Flash estimate of HICP

month

at the end of the reference month satisfying the dates as set by EUROSTAT

HICP

month

at the middle of the next month, satisfying the dates as set by EUROSTAT

HICP-CT

month

at the middle of the next month, satisfying the dates as set by EUROSTAT

Weights for HICP

year

at the middle of February each year, satisfying the exact date as set by EUROSTAT

 

CYSTAT compiles all the above datasets and provides them to EUROSTAT according to EUROSTAT’s preannounced dissemination calendar. In particular, HICPs are calculated every month and the final index figures are only disseminated on the Tuesday following the first Thursday of the month following the index's reference month (which is the publication date of the CPI). The dissemination dates are pre-announced in a release calendar on the website of CYSTAT. The publication of the HICPs is made with an announcement to the media, in the Official Government Gazette and on the website of the Statistical Service of Cyprus.

14.2. Punctuality

HICP data are transmitted to EUROSTAT according the release schedule as agreed by the PSWG each year. Furthermore, HICPs are published on CYSTAT website on the Tuesday following the first Thursday of the month following the index's reference month (which is the publication date of the CPI). The dissemination dates on national level are pre-announced in a release calendar on the website of CYSTAT. Up until today, CYSTAT has successfully produced HICPs and has met transmission deadlines, as those are set by EUROSTAT, since during the past 10 years CYSTAT has never missed a release date. 


15. Coherence and comparability Top
15.1. Comparability - geographical

For HICP purposes the prices of goods and services in Nicosia, Limassol, Larnaca and Paphos are collected. The price collection is carried out only in the urban areas whereas small towns, villages and the countryside are excluded. Regional consumer price indices are comparable since the price collectors are instructed to collected prices of items with similar specification; furthermore the same checks, replacements and quality adjustments practices are applied. 

The comparability of consumer price indices with those of other Member States is also high since HICPs production is determined by specific EU Regulations that aim to harmonize the HICPs among Member States. In addition, countries are instructed to apply the same classification (COICOP), definitions and methodology in the HICP compilation procedure as these are recorded in the HICP Manual published by EUROSTAT. 

15.2. Comparability - over time

HICP data are fully comparable over time. There have been several improvements in methodology since HICP was introduced with the aim of improving reliability and comparability of the HICP. These changes may have introduced breaks in time series. However back calculations under the newer standards were performed when appropriate basic data was available.

15.3. Coherence - cross domain

Differences between the HICP and national CPI

Both CPI and HICP cover the prices of goods and services in the urban areas of the same four regions (Nicosia, Larnaca, Limassol and Paphos), however for the compilation of the Accommodation services index in the HICP, the hotel prices in the region of Famagusta are also collected whereas those prices are not included in the CPI sample. For each region, the fluctuations in the product prices each month are weighted according to their population. Specifically, the weights for the four districts are: Nicosia 42%, Limassol 30%, Larnaca 18% and Paphos 10%. Regarding the population coverage, the HICP covers all households´ expenditures taking place within the economy territory of the country, whether those households actually live in the country or whether they are merely visiting the country (tourists) and covers institutional households as well.  On the other hand, the domestic concept is applied in the CPI which only records consumption expenditures by resident households.

There are some differences in the treatment of product groups in HICP comparing to CPI. In particular, in the HICP the Commission Regulation No 330/2009 on the treatment of seasonal items has been put into effect since 2011. However, the classes of the Fruits and Vegetables were treated as seasonal for CPI purposes long before the adoption of the regulation and only the classes of Clothing and Footwear were mostly affected by the regulation.

The HICP requirements have not all been implemented in the national CPI. Specifically, the weights of HICP are being revised annually whereas the weights of CPI are revised every five years. Additionally, up to 2011 the computation of the weights of both indices was mainly based on the data available by the last Household Budget Survey. From 2012 onwards, the weights of the HICP are calculated on the basis of National Accounts data.

15.4. Coherence - internal

HICPs are internal coherent. Higher level aggregations are derived from detailed indices according to well-defined procedures.


16. Cost and Burden Top

The HICP is mostly derived from the CPI and therefore in general there is not any extra burden on the respondents.

The only extra data collected for HICP purposes are the hotel prices, since the hotel sample for HICP is larger than that used for CPI. However, the hotel prices are collected via telephone and the burden on the respondents is not considered to be significant.

In addition, CYSTAT in order to reduce the burden on the respondents collects some prices via internet.

CYSTAT does not purchase price data at present.

The estimated full time equivalent of the staff working on HICP/CPI is 8 persons out of which 3.25 persons are working in the central office, 3.5 persons are price collectors and 1.25 are working in the regional offices. The total labour costs of staff working on HICP/CPI for around 70.000 euro.


17. Data revision Top
17.1. Data revision - policy

HICP series, including back data, are revisable under the terms set in Commission Regulation (EC) No 1921/2001 of 28 September 2001. The published HICP data may be revised for mistakes, new or improved information, and changes in the system of harmonised rules.

17.2. Data revision - practice

The Statistical Service of Cyprus considers that the HICP is a revisable index and revisions should take place when changes are expected to have significant impact on the HICP. The extent of a revision must be agreed with Eurostat.


18. Statistical processing Top
18.1. Source data

Sample size (reference year 2010):

On average, about 8 756 price quotations are collected every month in about 1 644 outlets.

Rent data are obtained monthly from a survey covering 625 dwellings.

The regulation on tariffs has been applied in the cases of electricity, water, gas, telephone services, postal and transport services.

The prices collected centrally account for 19, 20% of the total weights.

No. of price observations per month: (8 756 average number)

01 Food and non-alcoholic beverages: 1 900

02 Alcoholic beverages, tobacco: 193

03 Clothing and footwear: 1 017

04 Housing, water, electricity, gas and other fuels: 312

05 Furnishings, household equipment and routine maintenance of the house: 1 355

06 Health: 567

07 Transport: 567

08 Communications: 72

09 Recreation and culture: 1 160

10 Education: 197

11 Restaurants and hotels: 521

12 Miscellaneous goods and services: 895

For the rent index the prices of 625 rented dwelling are monitored.

 

Number of representative products at lowest classification level (reference year 2009):

All-items: 783

01 Food and non-alcoholic beverages: 158

02 Alcoholic beverages, tobacco: 15

03 Clothing and footwear: 85

04 Housing, water, electricity, gas and other fuels: 31

05 Furnishings, household equipment and routine maintenance of the house: 112

06 Health: 63

07 Transport : 69

08 Communications: 9

09 Recreation and culture: 103

10 Education: 17

11 Restaurants and hotels: 43

12 Miscellaneous goods and services: 78

18.2. Frequency of data collection

Timing of price observation

The prices for the goods and services included in the basket are collected once a month. The collection period starts on the 6th of each month and continues for three weeks.

The visits to the outlets are distributed evenly over the three weeks and the price collectors have a fixed interview day per outlet.

However the prices for the following items are collected once a week (every Thursday).

01.1.2.1 Meat - fresh

01.1.2.2 Poultry - fresh

01.1.3 Fish - fresh

01.1.6 Fruit

01.1.7 Vegetables

04.5.2 Gas

04.5.3 Liquid fuels

07.2.2 Fuels

18.3. Data collection

Outlet selection

The outlets are chosen to represent the structure of retail trade as closely as possible. The outlets are selected using data from the Census of Enterprises, Retail Trade Statistics as well as the knowledge and judgement of the price collectors, who are familiar with their city/region. Some outlets are selected centrally and others by the price collectors. The outlet sample is updated every five years or sooner if the need arises. Market stalls, mail order and internet shopping are not included in the sample.

Techniques of product selection and specification

The products priced are specified in detail, i.e. size, brand, quantity, quality, and commercial representation so as to avoid variations of prices which might be caused by a different quality, method of packing, model etc. Normally, the specification of items is the same for all outlets, but in a few cases where this is not possible the relevant items are defined separately. From month to month the price collectors have to use the same variety or report any changes in the specification of the product.

The selection of the specific products in an outlet depends on the % contribution to the total turnover of the outlet.

18.4. Data validation

Not available.

18.5. Data compilation

Weights

The calculation methods for the weights that comply with the standards set by the Commission Regulation No 1114/2010 on HICP weights were implemented with the production of the index for January 2012. Specifically, CYSTAT has reviewed and updated HICP sub-index weights at COICOP 4 and at a more aggregate level for the year 2012, mainly based on NA data on consumption patterns of the year 2010. For the weights at a more detailed level, the HBS figures of 2009 have been used ensuring that the weights for Elementary Product Groups are in no case more than seven years old. 

Starting from January 2012 and onwards the annual revision of the HICP weights at COICOP 4 level is mainly based on NA data. However, the HBS data and other sources are also exploited in order to keep weights reliable and as up-to-date as possible, such as the Electricity Authority of Cyprus, water boards, telecommunication companies, data from the sales of gas and petroleum products, Transport Statistics, pharmaceutical services, Education Statistics and Foreign Trade Statistics.

Updating of the weights is carried out every December based on data from the above-mentioned sources as well as price indices methods.

Computation of lowest-level indices

HICP is a Laspeyres-type index according to the requirement of the article 9 of the framework Council Regulation (EC) No 2494/95. Concerning the calculation of elementary aggregates (that is the individual indices of a specific item in each price collection city) the geometric mean of all prices of an item is used. 

Treatment of missing items and replacements

The treatment of missing values is in accordance with the minimum standards described in Article 6 of Regulation (EC) No 1749/96. The general rule, for missing prices, is to repeat the last observed price of the monthly observed item for a 2 months period for calculation purposes, then if the item remains unavailable for more than 2 months it is replaced.


Introduction of newly significant goods and services

Newly significant products are added in the sample, if their weight accounts for more than one part in a thousand of the total expenditure covered by the CPI/HICP, at the base year revision, where the target sample is reviewed overall, mainly based on the results of the latest HBS. Nonetheless, a new product may be introduced as a new representative item during the year if it replaces an obsolete item (e.g. new model of a car).

Newly significant goods and services are introduced in December of each year.


Treatment of price reductions

The HICP takes account of the discounts, which are universally available to all, effective immediately, attributable to the specific purchase and involve no change in the specification of the good or service being purchased.

Treatment of seasonal items

The standards of the Commission Regulation No 330/2009 on the treatment of seasonal items have been put into effect with the index for January 2011. The implementation of the regulation has not meant important changes to the index compilation procedures. In particular, the classes of the Fruits and Vegetables are treated as seasonal products long before the application of the regulation and only the classes of Clothing and Footwear were mostly affected by the regulation.

The seasonality of the Fruits and Vegetables and of Accommodation Services is treated by applying the class-confined seasonal weights method. This method defines that the weights do not differ between months for any COICOP/HICP subdivision taken as a whole, or for products within any COICOP/HICP subdivision that does not contain any seasonal product and also weights do not differ between the months for products within any COICOP/HICP subdivision that contains seasonal products within the in-season period, except to the extent that is necessary to allow for month-on-month changes in the composition of the basket. 

In particular, in order to overcome the seasonality problem, a different basket of fruit and vegetables is used for each month, based on data obtained from the municipal wholesale markets.

The weights allocated to the various kinds of fruit and vegetables is proportional to their total value of sales as recorded at the wholesale markets for a period of three years.

The total weights of each basket are constant every month, although the composition of items and their weights vary from month to month depending on their availability and consumption.

The weights for clothing and footwear are fixed and they are not reallocated between the months.

For the treatment of the seasonality of the Clothing and Footwear the all-seasonal estimation method is applied. According to this method, the price for a product that is out-of-season for the first month of the out-of-season period, is estimated to be equal to the typical price observed in the previous in-season period and from the second month, the estimated price is equal to the estimated price for the preceding month, adjusted by the change in the observed prices on average over all available products in the same subdivision of COICOP/HICP.

18.6. Adjustment

Adjustment for quality differences

Forced replacements are made if the product for collection is no longer stocked by the retail outlet, its manufacture is discontinued or it is no longer in the outlet’s range. An estimate is made of the explicit quality difference between the original item and the replacement, which is used to make a quality adjustment.

In the cases where it is not possible to make an explicit estimate of the quality difference, then the whole of the price difference between the original and the replacement items is reflected in the index as a real price change (i.e. the original and replacement are effectively treated as being of exactly the same quality).


19. Comment Top

None.


Related metadata Top


Annexes Top