Harmonised index of consumer prices (HICP) (prc_hicp)

National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: National Institute of Statistics, Romania

Time Dimension: 2017-A0

Data Provider: RO1

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 Institute of Statistics, Romania

1.2. Contact organisation unit

Price Statistics Department (R.2.1.2)

1.5. Contact mail address

B-dul Libertății 16, Sector 5, Cod Poștal 050706, România


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 regarding the countries and country groups they are produced for. 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 data is as follows:

1. Monthly data:

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

Weights:

The RO HICP weights cover the domestic territory of Romania.

Prices:

Price are collected from 68 collection centres located in 42 main urban cities.

3.8. Coverage - Time

HICP indices for Romania are available since January 2001 (earlier figures since 1996 are estimates based on the national CPI).

3.9. Base period

From January 2016 on, the index reference period used for the HICP and HICP-CT data is 2015=100.

Starting from January 2017 the weight reference period is 2015. Weights are updated every year.


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. Regulation (EU) 2016/792 of the European Parliament and of the Council of 11 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, 19 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

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 the policy rules (see point 7.1).


8. Release policy Top
8.1. Release calendar

The release calendar is available to the public. Release dates for CPI data are published at the end of the current year for the following year.

8.2. Release calendar access

Romanian National Institute of Statistics

Eurostat

8.3. Release policy - user access

In line with the Community legal framework and the European Statistics Code of Practice Eurostat disseminates European statistics on Eurostat's website (see item 10 - 'Dissemination format') 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.


9. Frequency of dissemination Top

Harmonised consumer price indices are produced and disseminated monthly.


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

http://ec.europa.eu/eurostat/web/hicp/publications/news-releases

10.2. Dissemination format - Publications

Data are published on Eurostat`s website and on NSI’s website: Statistical Publications.

10.3. Dissemination format - online database

Detailed HICP time series are available on the HICP database.

10.4. Dissemination format - microdata access

None.

10.5. Dissemination format - other

None.

10.6. Documentation on methodology

A description of the methodology to compile the HICP is published in the Statistical Yearbook as well as in each monthly issue of the Prices Statistical Bulletin - which can be found at www.insse.ro

10.7. Quality management - documentation

See Eurostat's Compliance Monitoring Report of 2007.


11. Quality management Top
11.1. Quality assurance

Controls on the quality of the data

There is no automatic rejection of observed prices in our system. Each case (suspicious price) is considered individually and all modifications are made on the basis of relevant information.

Prices are introduced in the system at local level by price collectors. Some numerical checks on the entire data set are carried out by the supervisor at local level. Any suspicious prices are then checked either with the price collectors or, if necessary, directly in the field.

The price collector and supervisor have to verify if the price variety is unchanged: description, unit of measurement, producer etc. Together with the manager of the outlet, they identify the causes of the change: changes in mark-up, transport costs, wholesale price or other reasons. The reasons for price variations are filled-in in the ‘observation’ field.

Data files are transmitted to the central office after this checking. At central level, the price information collected locally is loaded into the database system after integrity control. The system has a built-in module in order to diagnose data errors, also checking for possible missing and critical variables. The system generates a detailed report if errors are detected.

Preliminary index results are computed and diferent procedures for quality adjustment and treatment of missing prices are then applied.

11.2. Quality management - assessment

None.


12. Relevance Top
12.1. Relevance - User Needs

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

  • input to economic forecasting and analysis;
  • measuring specific price trends;
  • accounting purposes and deflating other series;
  • inflation targeting by central banks;
  • contract indexation.

Generally, HICPs are in particular suited for cross-country economic comparisons.

12.2. Relevance - User Satisfaction

The most important users of CPIs/HICPs data are represented in the so called National Statistical Council. This council meets on a quarterly basis to give their views on various statistical topics.

12.3. Completeness

All RO HICP indices are disseminated at 5-digit level.


13. Accuracy Top
13.1. Accuracy - overall

The accuracy cannot be quantified, however the accuracy and representativeness of the CPIs/HICPs is guaranteed by observing a large number of prices for diverse products.

13.2. Sampling error

The HICPs are statistical estimates that are subject to sampling errors, because they are based on a sample of outlets, goods and services.

However, the Romanian National Institute of Statistics does not produce 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. Consequently, no estimate for a global HICP sampling error can be produced, still there`s a try to reduce the sampling errors by using a sample of consumer prices that is as large as possible, given resource constraints.

13.3. Non-sampling error

Non-sampling errors are not quantified.


14. Timeliness and punctuality Top
14.1. Timeliness

The harmonised indices and all sub-indices are transmitted to Eurostat each month, according to the pre-announced schedule, no later than 15 calendar days, for the February to December indices, and 20 calendar days, for the January indices, after the end of the month for which the indices are calculated .

14.2. Punctuality

RO HICP is always published on the pre-announced date.


15. Coherence and comparability Top
15.1. Comparability - geographical

The HICPs are compiled at national level only.

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 HICPs. These changes may have introduced breaks in time series.

15.3. Coherence - cross domain

Differences between the HICP and national CPI

The differences between the HICP and the national CPI are as follows:

  • The HICP weights are based on monetary expenditure by all private households, including foreign visitors to Romania and excluding domestic visitors from outside of Romania. In the CPI, weights are based on monetary expenditure by private households, excluding the foreign visitors to Romania.
  • The source for HICP weights are the NA and for CPI weights is the HBS data.
  • Coverage of the HICP is based on ECOICOP. The CPI employs its own classification system.
  • In the compilation of HICP, the "expenditure net of reimbursement" concept is used - in the case of health (pharmaceutical products) and insurance.
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

Not available.


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 RO HICP is published as 'final' and is not subject to revision unless an error or mistake is found. A base-year revision does not lead to a subsequent revision of results.


18. Statistical processing Top
18.1. Source data

Sample size (reference year 2017)

On average, about 102 000 price quotations are collected in about 7 200 outlets.

 

No of price observations per month: 102241

01 Food and non-alcoholic beverages 19978

02 Alcoholic beverages, tobacco 2036

03 Clothing and footwear 16263

04 Housing, water, electricity, gas and other fuels 4934

05 Furnishings, household equipment and routine maintenance of the House 17370

06 Health 8 505

07 Transport 7304

08 Communications 397

09 Recreation and culture 12307

10 Education 520

11 Restaurants and hotels 4581

12 Miscellaneous goods and services 8046
The Regulation on tariffs is applied in the case of electricity, water and gas, post services, transport services by bus and railway.


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

All-items: 1 812

01 Food and non-alcoholic beverages 326

02 Alcoholic beverages, tobacco 31

03 Clothing and footwear 265

04 Housing, water, electricity, gas and other fuels 100

05 Furnishings, household equipment and routine maintenance of the house 277

06 Health 134

07 Transport 204

08 Communications 37

09 Recreation and culture 215

10 Education 11

11 Restaurants and hotels 76

12 Miscellaneous goods and services 136

Prices for 10% of all products are collected centrally (i.e. newspapers, electric energy, rent established by local authority, railway transport, transport by inland waterway, transport by air, post services, landline and mobile telephone services, bank services).

18.2. Frequency of data collection

Timing of price observation:

Frequency of data collection – every ten days for food goods, tobacco, fuels and water, sewerage, sanitation. For the rest of the non food goods and tariffs of services, where products are showing no sharp and no irregular price changes within the same month, price are collected at the middle of the calendar month (second decade).

18.3. Data collection

Outlet selection:

The outlets in each location are selected on the basis of turnover data from trade statistics and information from the business register and other sources. Further outlets are then included in the sample based on the local market research performed by the local staff and on their own experiences.

The main criteria for the selection of outlets in each observation point are the coverage of the available shopping location and the degree to which different types of outlets are represented.

The number of outlets sampled varies depending on the size of the locality and the type of item being priced. The outlets sample is reviewed and updated every year, in October-November.

The prices for personal computers are collected from the Internet. The administered prices are collected from administrative sources or from the units which provide these services.

Techniques of product selection and specification:

On an yearly basis, the central staff carries out a systematic review, in order to maintain the relevance and representativeness of the basket. This review is based on market research, HBS data analysis, desk research and field observations, etc. The aim is to identify which products are important to consumers, and where specific suppliers are important so that they are adequately represented in the sample.

The items are more or less tightly specified, by indicating size, unit, materials, brand characteristics, in some cases the quality. The degree of the item specification will depend on the nature of the product.

18.4. Data validation

See 12.1

18.5. Data compilation

Weights:

The data source of HICP weights for sub-index level (ECOICOP class) is the national accounts for the year t-2. The weights below sub-index level are based on HBS data for the same year. These data are supplemented and verified using other statistical and non-statistical sources.

Weights are changed every year. The 2017 HICP weights referred to National Accounts data for the year 2015 and were price updated to December 2016.

Computation of lowest-level indices:

Since January 2001 the geometric mean formula for all elementary aggregates is used.

Treatment of missing items and replacements:

Missing prices are treated in accordance with HICP regulations, i.e. prices are imputed, in the first and second month, using the price development for other product offers of the same item. If in the third month the price is still missing, the product offers is replaced.

If a product offer disappears from the market permanently, it is replaced by an essentially equivalent/comparable product offer (essentially the same in terms of his price determining characteristics).

In the case of an item which is disappearing from an outlet permanently, but not losing the representativeness in the market then the outlet is replaced.

Introduction of newly significant goods and services:

The newly significant goods and services are identified during our annual review process and are introduced as part of the annual update of the CPI/HICP basket.

Treatment of price reductions:

Seasonal sales, other sales prices and reduced prices are included in the index when they are available to all potential consumers with no special conditions attached. Price reduction is taken into consideration only if the outlet which has the reduced price is included in our sample and the price reduction applies during our price collection period.

Treatment of seasonal items:

Fixed weights are given to seasonal items, according to Commission Regulation (EC) No 330/2009.

From January 2011 index INS adopted the seasonal estimation method as set out in HICP Regulation 330/2009, for constructing seasonal items in the RO HICP.

18.6. Adjustment

Adjustment for quality differences:

The following quality adjustment are used:

Direct comparison - when there is judged that new product offer has the same quality as the old product offer.

Bridged overlap – when quality differences cannot be estimated.

Overlap – when there is clear information about the quality change.

Option pricing – in the case of new cars.


19. Comment Top

HICP ESMS


Related metadata Top


Annexes Top