Harmonised index of consumer prices (HICP) (prc_hicp)

National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Central Statistical Bureau of Latvia (CSB)

Time Dimension: 2017-A0

Data Provider: LV1

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

Download


1. Contact Top
1.1. Contact organisation

Central Statistical Bureau of Latvia (CSB)

1.2. Contact organisation unit

Consumer Price Indices Section

1.5. Contact mail address

1 Lacplesa Street

Riga LV 1301

LATVIA


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 (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

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

3.3. Coverage - sector

HICPs cover the whole household sector, more precisely the goods and services that are acquired by 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)
  • 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

Geographical coverage
HICP covers the entire area of the country.

3.8. Coverage - Time

HICPs for Latvia are available from 2002 (earlier figures — from 1996 — 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 comparison year to the price in the reference year multiplied by 100. However, the HICP can be thought of as the amount the average consumer would have to spend in a comparison year to buy the same basic goods and services that one would have to pay 100 monetary units for in the reference period);
  • Percentage change compared to the same period of the previous year (rates);
  • Percentage change compared to the previous period (rates);
  • Percentage change in the last 12 month, compared to the previous 12 month (rates);
  • Percentage share of the total (weights).


5. Reference Period Top

Index reference period is 2015.

Price reference period is December T-1.


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

Harmonised Index of Consumer Prices (HICP) is designed to measure inflation in a harmonised manner across Member States. The Commission and the European Central Bank (ECB) use the HICP in their assessment of price stability in the Member States under Article 140 of the Treaty on the Functioning of the European Union (TFEU).

Regulation (EU) 2016/792 of 11 May 2016 (OJ L 135/11) sets the legal basis for the compilation of the HICP.
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

According to policy rules.


8. Release policy Top
8.1. Release calendar

The release calendar is publically available and published at the beginning of year for the full year.

8.2. Release calendar access

CSB of Latvia website (HICP Release Calendar).

8.3. Release policy - user access

In line with European Statistics Code of Practice, UNO Principles of Official Statistics, Law on Statistics.
Free access to all users; data dissemination to all users at the same time.


9. Frequency of dissemination Top

Harmonised consumer price indices are produced monthly.


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

No news release is issued for the HICP.

10.2. Dissemination format - Publications

The HICP is published on the website of the Central Statistical Bureau (CSB) of Latvia (Consumer Prices — Key Indicators — Latvijas statistika). 

10.3. Dissemination format - online database

CPI/HICP online database

10.4. Dissemination format - microdata access

Not available.

10.5. Dissemination format - other

None.

10.6. Documentation on methodology

Brief methodological notes are available on the CSB website HICP methodology

Information on methodological issues may be obtained by calling +371-67366644.

10.7. Quality management - documentation

See Eurostat's Compliance Monitoring Reports of 2007 and 2013.


11. Quality management Top
11.1. Quality assurance

Controls on the quality of the data
Eurostat carried out a HICP compliance monitoring visit in July 2007 and published a report in September 2007. The report contains several recommendations that were followed up. In March 2013 repeated compliance monitoring visit took place.

The CPI unit has developed a software and computerized system for the automated receipt, processing, and aggregation of data, as well as for checking the consistency of reports with the given criteria and verifying the logical and accounting consistency of the reports.
After data entry into the database data are checked manually in case-by-case approach.
Compilers constantly review the individual and aggregate indices to check that the price movements are in line with market information.
Supervisors from the CPI unit take a random or targeted audit of individual price collectors.

11.2. Quality management - assessment

Refer to Eurostat's Compliance Monitoring Reports of 2007 and 2013 (see point 11.1).
HICP concepts and methodology have been developed according to international standards and using consumer price statistics experience from other EU Member States. HICPs are considered to be sufficiently accurate for all practical purposes they are put into.
As with other member states, further work is ongoing to improve the quality of the index. Key priorities are the treatment of owner occupied housing (currently excluded), greater harmonisation of methods for quality adjustment and sampling, harmonized treatment of special product groups, e.g., airfares, telecommunications, rents as well as treatment of Internet purchases.


12. Relevance Top
12.1. Relevance - User Needs

The HICPs are used as secondary (complementary) indicator for general measure of inflation in the country. The main users are Bank of Latvia and Central Government (Ministry of Economics and Ministry of Finance). HICP has an interest of public media and economic analysts as well.

12.2. Relevance - User Satisfaction

The latest user satisfaction survey has been carried out in May 2012.

12.3. Completeness

Indices for all ECOICOP categories accounting at least one part in a thousand of the total expenditure are calculated and transmitted to Eurostat.


13. Accuracy Top
13.1. Accuracy - overall

The accuracy of source data is monitored by assessing the methodological soundness of price and weight sources and the adherence to the methodological recommendations.
Product sample or HICP basket includes both goods and services which are chosen on the basis of Household Budget Survey and market information about most purchased items. Main data sources for weights are National Account data, Household Budget Survey data, branch statistics data as well as information provided by enterprises and retailers.  Outlet sample is based on following criteria: popularity with consumers and availability of goods and services included in the HICP basket.
Different price collection methods are used (visits to local retailers and service providers, central collection via e-mail, telephone and Internet). Also administrative data sources are used when it is appropriate.

13.2. Sampling error

There are no numerical estimates of HICP sampling errors because they are difficult to quantify due to the complexity of price index structures and due to the common use of non-probability sampling.
The sampling errors may be reduced by using a sample of consumer prices that is as large as possible.

13.3. Non-sampling error

For the HICPs non-sampling errors are not quantified.
Non-sampling errors have been reduced through continuous methodological improvements.


14. Timeliness and punctuality Top
14.1. Timeliness

Data are published according with the predefined calendar (on average on the 9th working day of the month following the reference month).

14.2. Punctuality

There have been no delays in publication of the HICP.


15. Coherence and comparability Top
15.1. Comparability - geographical

Within the country, the HICP is published only at national level, there are no regional indices.
The comparability of HICP across countries is regarded to be high. Definitions and classifications have been harmonised in a series of legal acts that have resolved conceptual disparities. HICPs are produced based on minimum standards, which may be applied with some flexibility as long as the impact is estimated to be less than or equal to 0.1 percentage points on average over one year against the previous year.

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 data series. Impact from the changes in the methodology has been assessed through parallel calculation of the index (e.g. in case of the implementation the Regulation on the seasonal items).

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 of the country.
The following consumption expenditure is included in the national CPI but excluded from the HICP: expenditure on gambling and games of chance, expenditure of residents abroad.

15.4. Coherence - internal

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


16. Cost and Burden Top

Annual average costs for production the HICP can't be estimated exactly since they are integrated together with costs for production of the national CPI.
Burden on respondents is deemed to be low, since main volume of prices has been collected by CSB staff (price collectors). Regular investigations have been carried out to find possibilities to use administrative data sources or central price collection in order to reduce the costs.


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

During the rebasing exercise of index reference period there were some revisions of published rates of change due to rounding effects.


18. Statistical processing Top
18.1. Source data

Sample size (year 2017)
On average, about 20 100 prices are collected every month in 2 000 outlets.

Prices are collected centrally (on average 15% of the sample) for the following items: tobacco products, some segments of rent, electricity, natural gas, reimbursed medical products and services, new and used cars, fuels for transport, hire of car, railway, air and sea transport services, postal and telecommunication services, computers, some electronic devices, fiction books, magazines, package holidays, social protection, insurance, financial and legal services.

Number of price observations per month: 20 190

01 Food and non-alcoholic beverages 6 270
02 Alcoholic beverages, tobacco 590
03 Clothing and footwear 2 090
04 Housing, water, electricity, gas and other fuels 1 490
05 Furnishings, household equip. and routine maintenance of the house 1 840
06 Health 1 370
07 Transport 1 860
08 Communications 420
09 Recreation and culture 1 760
10 Education 180
11 Restaurants and hotels 630
12 Miscellaneous goods and services 1 690

Number of representative items at the lowest classification level (year 2017)

All-items: 515

01 Food and non-alcoholic beverages 127
02 Alcoholic beverages, tobacco 13
03 Clothing and footwear 65
04 Housing, water, electricity, gas and other fuels 30
05 Furnishings, household equipment and routine maintenance of the house 54
06 Health 34
07 Transport 47
08 Communications 13
09 Recreation and culture 56
10 Education 9
11 Restaurants and hotels 16
12 Miscellaneous goods and services 51 

18.2. Frequency of data collection

Timing of price observation
Prices are collected once per month between the 4th and 20th of the reference month. Fuel for transport is priced 4 times per month.

18.3. Data collection

Outlet selection
Outlets are selected using purposive sampling based on three main criteria: popularity with consumers, significant consumer sales, and availability of the range of goods and services included in the HICP basket.
The number of outlets is approximately 2 000. Replacement of outlets is carried out gradually throughout the year in the occasions if current outlet is permanently closed or if it has become non-representative.
Market stalls and internet shopping are included in the sample.

Techniques of product selection and specification
The selection of representative items is purposive. A list of representative items is updated annually by CSB staff. To ensure coverage of representative goods or services, the list contains item descriptions to provide a framework within which price collectors choose the most frequently sold product in each selected outlet and brief guidelines to help price collectors make an appropriate choice. Generally, loose specification is used in product definition.

18.4. Data validation

First steps of data validation have been carried out at the time the data are entered into database by price collectors. A number of logical and arithmetical validation rules allow avoiding misspelling errors.
Later on spatial and historical dimensions of the prices and price movements have been examined in validation process in order to detect any unusual price development, which then is subject of further investigation. Central unit staff members constantly review the indices at basic and aggregate level to check whether the price movements are in line with market information.
The data processing system routinely identifies those sub-indices with a significant contribution to the total index, which allows these to be checked for possible errors. It also quickly identifies large individual price changes, which are similarly checked.

18.5. Data compilation

Weights
There are 515 item weights at national level. For some items individual outlet weights are used.
Main data sources for weights are National Account data, Household Budget Survey data and different branch statistics data. Information on income distribution from enterprises, as well as largest shop-chains is used to derive the lowest-level weights.
The weights reference period is the year T-2. The weights are price–updated to December T-1.
Weights are updated annually.
Computation of lowest-level indices
Majority of price indices for elementary aggregates (EA) are calculated as a ratio of arithmetic mean prices. The EA indices are calculated as monthly-chained indices.
Treatment of missing items and replacements
In the event of temporary missing prices, a price may be imputed for up to two successive months using the average price movement of all available product offers belonging to the same elementary aggregate. After that, the most appropriate replacement product is selected.
Introduction of newly significant goods and services
Any available market information has been collected throughout the year by staff members, including price collectors. Information from HBS is analysed regularly with aim to identify new significant products. Towards the end of year unit decides which products should be introduced into sample and which ones – excluded. The weight of the sub-index, number of EA in the sub-index and volatility of price development are main criteria, which are taken into account for making decision. Then central staff defines specification of the product and prepares the guidelines for each new product.  In December the first full price collection is carried out for new products.
Treatment of price reductions
Sales prices are normally taken into account if they are non-discriminatory. Discounts on damaged, shop- spoiled or defective goods, goods close to the expiry date are disregarded.
Treatment of seasonal items
Seasonal products are treated according to Commission Regulation (EC) No 330/2009 of 22 April 2009.
The following ECOICOP/HICP classes contain seasonal products: 0116, 0312, 0313, 0321, 0551, 0721. To estimate the prices of out-of-season products within ECOICOP/HICP classes 0312, 0321 and 0721 the counter-seasonal estimation method is applied while for the rest of seasonal products - the all-seasonal estimation method.
Sales periods in Latvia are not defined by any legislation and depend upon shops.
The weights for all seasonal products are fixed annual weights.

18.6. Adjustment

Adjustment for quality differences

Price collectors perform the initial steps for QA, by selecting the most suitable replacement, estimating the comparability of both products and reporting on the differences in characteristics between them. The instructions and examples are described in the manual for price collectors.
Central staff of the CPI unit makes the final QA. For fruit, vegetables, clothing, footwear, audio and video recordings, books in rapidly-changing market direct comparison is the primary (most often used) QA method. 50% option cost or indirect option cost regarding fuel consumption approach for new cars in case of minor changes is used. For other product categories, mostly the bridged overlap in case of major changes and direct comparison in case of minor changes is used. In special cases judgmental (expert) adjustment and quantity adjustment is used as well. There are no automatic QA procedures for any product group. Instead, the choice of method depends on the specific replacement situation and selected replacement product-offer.


19. Comment Top

Metadata:

Harmonised Index of Consumer Prices

Consumer price index

Owner-Occupied Housing Price Index


Related metadata Top


Annexes Top