Harmonised index of consumer prices (HICP) (prc_hicp)

National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: National Statistical Institute of Czech Republic

Time Dimension: 2017-A0

Data Provider: CZ1

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

National Statistical Institute of Czech Republic

1.2. Contact organisation unit

Price Statistics / CPI section

1.5. Contact mail address

Na padesátém 81 /100 82 Praha 10 — Strašnice /CZECH REPUBLIC


2. Metadata update Top
2.1. Metadata last certified 06/04/2017
2.2. Metadata last posted 06/04/2017
2.3. Metadata last update 06/04/2017


3. Statistical presentation Top
3.1. Data description

Harmonised indices of consumer prices (HICP) 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). ECOICOP (European Classification of Individual Consumption according to Purpose).

3.3. Coverage - sector

HICPs cover the whole household sector, more precisely the goods and services that acquired by households.

3.4. Statistical concepts and definitions

The published is as follows:

1. Monthly data:

  • Indices (HICP 2015 = 100. HICP 2005=100. HICP: 1996=100. HICP at constant taxes 2015=100)
  • 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

For the Czech Republic, the HICP covers the entire area of the country.
Price collection is performed in Prague and in 35 districts (NUTS4) out of a total of 75. The districts are evenly spread over the country. The regional collection is done in the seat town of the districts and close surroundings (namely hypermarkets and supermarkets around). A survey of rents is also conducted in other small towns outside the seat town of the district.

3.8. Coverage - Time

HICPs for the Czech Republic have existed since 2000 (earlier figures – from 1997 – are estimates based on the national CPI).

3.9. Base period

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

Month.


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. European Parliament and Council Regulation (EC) No 2016/792 of11 May 2016 (OJ L 135) 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, over 20 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, seasonal items, and weights have been adopted. A set of Recommendations is also available.

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

None.


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.

7.2. Confidentiality - data treatment

Aggregation of disclosive information,  aggregation rules on aggregated confidential data, primary confidentiality with regard to single data values.


8. Release policy Top
8.1. Release calendar

On the 9th calendar day of every month, at 9h00 (local time).

8.2. Release calendar access

Eurostat's website.

8.3. Release policy - user access

Press release for CPI includes HICP annual and monthly rate for all-items level. Published on the internet for all users. No privileged users exist. The link to Eurostat website is included. No more HICP data published by the NSI.


9. Frequency of dissemination Top

Harmonised consumer price indices (HICP) and HICP-CT are produced monthly.

OOH and HPI are produced quarterly.


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

HICP total index is published together with CPI News Release (https://www.czso.cz/csu/czso/press_releases_kap).

10.2. Dissemination format - Publications

Detailed HICP is not published by the Czech Statistical Office.

10.3. Dissemination format - online database

HICP database.

10.4. Dissemination format - microdata access

Micro data on demand at NSI.

10.5. Dissemination format - other

None.

10.6. Documentation on methodology

Methodology description and the composition of the consumer basket (in English on website):

https://www.czso.cz/csu/czso/inflation_rate

10.7. Quality management - documentation

See Eurostat's Compliance Monitoring Report of 2009.


11. Quality management Top
11.1. Quality assurance

Controls on the quality of the data
Stage 1
– Price information gathered by the price collectors is checked by the special central office staff. Price collection takes the first 3 weeks of the reference month. Extreme price deviations are sorted out with the help of software. There is no automatic rejection; all suspicious data are re-checked by collectors. Centrally collected prices are entered into the system by central office staff. A 'preliminary index' is then processed by central office staff. This stage ends towards the end of the reference month.
Stage 2 – Central staff checks the preliminary results. It is possible to see all price details and to perform checking of both individual prices and indices. Then quality adjustment and re-sampling/replacement procedures are carried out. The CPI is then compiled again. This can be repeated several times. Final results are approved and prepared for publication.
Stage 3 – HICP is derived from CPI sub-indices. HICP-CT is derived from HICP sub-indices.

11.2. Quality management - assessment

HICPs are considered to be sufficiently accurate for all practical purposes they are put into. In particular it is the best measure of inflation for the euro area and European Union as a whole as well as for the comparisons of inflation across countries for which it is compiled.


12. Relevance Top
12.1. Relevance - User Needs

Besides as a general measure of inflation, HICPs have a variety of potential other uses, for example:

  • Wage, social benefit and contract indexation;
  • Input to economic forecasting and analysis;
  • Measuring specific price trends;
  • Accounting purposes and deflating other series;
  • Inflation targeting by central banks.

At national level CPI is preferred.
Generally, HICPs are in particular suited for cross-country economic comparisons.

12.2. Relevance - User Satisfaction

Not systematically collected. Meeting with main users held regularly; requirements of users implemented if possible.

12.3. Completeness

All COICOP indices at 5-digit level (ECOICOP) are produced.


13. Accuracy Top
13.1. Accuracy - overall

The accuracy of HICP is generally considered to be high. The accuracy of 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 Account data, Household Budget Survey data, etc.) and prices (visits to local retailers and service providers and central collection via mail, telephone, e-mail and the internet are used). 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 network and they are based usually on three main criteria:

  • Popularity with consumers,
  • Significant turnover from consumer sales and
  • Availability of goods and services included in the HICP basket.

All the private households in the economic territory of the country are covered, whether resident or not and irrespective of their income.

13.2. Sampling error

The HICPs are statistical estimates that are subject to sampling errors because they are based on a sample of consumer prices and household expenditures, which are not the complete universe of all prices/expenditures.
The exact sampling error is not known.
The NSI tries to reduce the sampling errors by using a sample of consumer prices that is as large as possible, given resource constraints. The NSIs use models that optimise the allocation of resources by indicating the number of prices that should be observed in each geographic area and each item category, in order to minimize the variance of the all-items index.

13.3. Non-sampling error

Not known.


14. Timeliness and punctuality Top
14.1. Timeliness

The full set of HICPs is sent to Eurostat each month according to a pre-announced schedule (about two days after the CPI publication) — in general between 10 and 12 days after the end of the month in question.

14.2. Punctuality

Always sent in time.


15. Coherence and comparability Top
15.1. Comparability - geographical

The same methodology and data processing used for data from all the regions; all regions covered to the same extent.

15.2. Comparability - over time

HICP data are fully comparable over time. There have been several improvements in methodology since the 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
The following expenditure is included in the HICP but excluded from the national CPI: consumption expenditure of non-residents in the economic territory.
The following consumption expenditure is included in national CPI but excluded from HICP: monetary expenditure of investments in the owner-occupied house is measured (self-builders, renovations and major repairs), but not the purchase of the house itself.
Games of chance, drugs, prostitution etc. are excluded both from CPI and HICP.

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

CPI central staff – experts – 6 persons, data processing, checking – 6 persons, data collection – 47 person (about 70% of their workload).


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

Major (planned) revisions of CPI based on specifically targeted Household Budget Survey are performed every 5 years. The last one was done in 2011. For HICP based on CPI sub-indices, the revision (planned) of weights based mainly on National Accounts data is performed every year, with the possible inclusion of new sub-indices. Methodical changes induced by the harmonization process are usually introduced both in CPI and HICP. Where the HICP methodology might be contradictory to the national concept of CPI, a specific sub-index might be calculated as a duplicate – one for CPI use, the other for HICP.
There is no specific national policy for correcting mistakes and errors in CPI/HICP production. Discovery of such an error would have to be considered by a special Advisory Body, consisting of the President, statistical directors and relevant experts. The solution should follow CZSO general principles on dissemination policy. Regarding the specific solution found, a possible revision of previous results might occur. For HICP the relevant Council Regulation for revisions of HICP would be respected.


18. Statistical processing Top
18.1. Source data

Sample size (reference year 2010)
About 55 000 price quotations of consumer goods and services on average per month are surveyed in about 8 000 outlets.

Prices collected centrally are those for electricity, gas, second-hand cars, petrol and diesel fuels (survey questionnaire sent weekly and monthly to all sellers), passenger railway transport, passenger transport by air, postal services, telephone services, internet services, package holidays, insurances, financial services. All tariff prices are collected and treated by the central staff.

 

Nr. of price observations per month (approx. average number):

01 Food and non-alcoholic beverages 13 000
02 Alcoholic beverages and tobacco 1 000
03 Clothing and footwear 6 000
04 Housing, water, electricity, gas and other fuels 8 000
05 Furnishings, household equip. and routine maintenance of the house 6 000
06 Health 2 000
07 Transport 2 500
08 Communications  100
09 Recreation and culture 6 000
10 Education 1 000
11 Restaurants and hotels 3 000
12 Miscellaneous goods and services 3 000

Average number of representative items (reference year 2015):

Elementary Aggregates + tariff sub-indices (composed of variable number of the EAs)/ varieties – approx. number)

All-items: 670 + 11 / 11 000

01 Food and non-alcoholic beverages 161 / 700
02 Alcoholic beverages, tobacco 23 / 80
03 Clothing and footwear 57 / 2 700
04 Housing, water, electricity, gas and other fuels 41 + 4 / 500
05 Furnishings, household equip. and routine mainten. of the house 80 / 2 400
06 Health 19+2 / 200
07 Transport 78 + 2 / 450
08 Communication 3+ 1 / 70
09 Recreation and culture 105 / 3 000
10 Education 12 / 50
11 Restaurants and hotels 40/ 150
12 Miscellaneous goods and services 55 + 2 / 700

18.2. Frequency of data collection

The prices are collected between the 1st and the 20th day of each month. Fruit and vegetables are priced three times per month. Petrol and diesel fuels for personal transport equipment are priced every week – four times per month.

18.3. Data collection

Outlet selection
About 7 500 outlets in the country are chosen for the survey. Outlets are selected on the regional level (but with central recommendations as to the proportion of basic outlet types) according to local knowledge about retail sales distribution for each of the consumer basket items (EA-elementary aggregate). In practice, outlets are selected by price collectors mostly after identifying the non-availability/non-representativity of the outlet previously selected.
Outlet selection is centrally adjusted based on information about shares of sales for individual groups of products between basic outlet types and between individual hypermarket chains. A major outlet sample update occurs every 5-6 years and coincides with the general index revision (detailed Household Budget Survey).
Internet shopping is included in the index; market stalls are included for fresh fruit and vegetables.

Techniques of product selection and specification
The specification of products (EA – elementary aggregate) is rather loose and comes from central CPI staff. Definitions of EA are drawn up by central staff and reflect the most typical expenditure groups. Selection of specific product-offer is up to the price collector (a set of the same product-offers in various outlets is known as variety – tight specification within EA description). Specification of EA allows a wide range of products (product-offers) to be selected.
Selection of specific product-offer is up to the price collectors. The price collector selects for each EA in its own region 1 to 3 product-offers, which differ by outlet. The detailed definition of each product-offer is registered and examined by central staff. It is for central staff to check the definitions of product-offers (varieties), to decide whether its description falls within the more general description of relevant EA, and to decide whether the new definition of product-offer is essentially equivalent to the previous one.

18.4. Data validation

Price collectors: Electronic devices used for primary data collection/editing – first validation for price extremes and correct editing.
Data processing: Second validation – checking for extraordinary low/high prices within Elementary Aggregate, checking for correct codes, checking for extra price movements within time.
Final calculations, publications: Validation of individual results after quality adjustments procedures. Assessment of overall results.

18.5. Data compilation

Weights
The main sources for the weights are National Accounts (at the highest level) and the Household Budget Survey (at the lowest level).
There are 670 HICP weights at national level of items plus 11 weights of tariff sub-indices. Each tariff sub-index has internal weights of its items (but variable number through time of items within each of the 7 tariff sub-indices).
The weighting reference period used in 2017 is the year 2015; the weighting reference period used in 2016 was the year 2014.

 

Computation of lowest level indices
The ratio of the arithmetic mean is used for computing the elementary prices indices.

 

Treatment of missing items and replacements
Normally, every month 9% of price quotations are missing due to non-availability of the previously followed product-offer (about 4 500 price quotations from 50 000 surveyed by price collectors), of which 8% is a non-available variety in former outlet and 1% is a non-available outlet itself. All such non-available prices are currently replaced month by month. Therefore no carry forward is applied (seasonal goods are the exception to this rule).

 

Introduction of newly significant goods and services
New products are identified at two levels: price collectors and the regional /central staff. The decision about whether to include them in the survey is subjective. There is no systematic comprehensive source of information but a collection of small market researches on particular goods and service classes, possibly with the help of producer organisations.
Depending on the degree of change happening at the level of product, the introduction of 'new product' into the index will result in either the creation of a new variety within an existing EA or the creation of a new EA altogether. The inclusion of a new variety (change of parameters within the description of EA) is done every month. A ('radically') new EA is normally introduced only in December, but only exceptionally in the current month, if necessary.

 

Treatment of price reduction
Sales prices and other (non-discriminatory) reduced prices are included in the index unless they are considered insignificant.

 

Treatment of seasonal items
The only important product groups that can be taken completely out-of-season are winter/summer clothes and footwear. The estimated price for an out-of-season product is calculated by applying the last available regular observed price of the out-of-season product until the new in-season price can be found.
The relative weights of all EA (including seasonal items) are kept constant for each month of the year.
Prices of fruit and vegetables are collected three times per month, if available.

18.6. Adjustment

Adjustment for quality differences
The generally used QA method is bridged overlap within EA. This means first: if a product-offer (variety) can no longer be found in an outlet, another product-offer (the same or a different variety within the same EA) is selected to replace the old one. Only if these product-offers are not considered essentially equivalent (i.e. the product-offers do not belong to the same variety or the outlet changes), this observation is effectively excluded from the index and the price change is estimated using the remaining observations. (A new base price is imputed to obtain this effect.) After this QA procedure the number of price quotations within EAs remains constant through time.
A (straight) overlap method is used for the wholesale replacement of EA (EA replaced by EA '1:1'). This overlap itself does not affect the price index (at least in formal terms) either. Typically (but not necessarily) this happens in the month of December.
On a more general level, re-sampling and replenishment procedures are possible higher up, within the COICOP 5-digit (national extension of COICOP) level, too, in that a number of EAs are replaced by a number of new EAs (EAs replaced by EAs 'm:n'). This involves changing the weighting scheme within the relevant COICOP group.
Explicit methods (mostly expert judgement) are used only in exceptional cases and are mainly used for the replacement of EA by new EA, where the overlap or bridged overlap method is not considered to be appropriate/sufficient.


19. Comment Top

None.


Related metadata Top


Annexes Top