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: 2020-A0

Data Provider: LV1

Data Flow: HICP_NES_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

Central Statistical Bureau of Latvia (CSB)

1.2. Contact organisation unit

Consumer Price Indices Section



Annexes:
Consumer prices
1.5. Contact mail address

1 Lacplesa Street

Riga LV 1301

LATVIA


2. Metadata update Top
2.1. Metadata last certified 30/09/2020
2.2. Metadata last posted 30/09/2020
2.3. Metadata last update 30/09/2020


3. Statistical presentation Top
3.1. Data description

The harmonised index of consumer prices (HICP) is a consumer price index (CPI) that is calculated according to a common approach. It measures the change over time of the prices of consumer goods and services acquired by households. Because of the common methodology, the HICPs of the countries and European aggregates can be directly compared.

3.2. Classification system

European classification of individual consumption according to purpose (ECOICOP)

3.3. Coverage - sector

The HICP covers the final monetary consumption expenditure of the household sector.

3.4. Statistical concepts and definitions

The main statistical variables are price indices.

3.5. Statistical unit

The basic unit of statistical observation are prices for consumer products.

3.6. Statistical population

3.6.1. Statistical target population

The target statistical universe is the 'household final monetary consumption expenditure' (HFMCE) on the economic territory of the country by both resident and non-resident households... 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.

3.6.2. Coverage error population

No deviations from the target population.

3.7. Reference area

3.7.1. Geographical coverage

The HICP refers to the economic territory of a Member State as defined by ESA2010.

3.7.2. Coverage error regions

HICP covers the entire area of the country.

3.8. Coverage - Time

3.8.1. Start of time series

In accordance with Council Regulation (EC) No 1687/98, each Member State is required to produce a harmonised index of consumer prices (HICP) starting in January 1997.

3.8.2. Start of time series - national specifics

See the HICP database

3.9. Base period

2015=100


4. Unit of measure Top

The following units are used:

  • Index point
  • 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

HICP is a monthly statistics.


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 2016/792 of 11 May 2016 (OJ L 135) sets the legal basis for establishing a harmonised methodology for the compilation of the HICP, the MUICP and the EICP.
The Commission has brought forward detailed Regulations establishing the specific rules governing the production of harmonised indices.

Regulations:

  • Initial implementing measures (1749/1996)
  • Sub-indices (2214/1996)
  • Weights (2454/1997)-repealed
  • Coverage of goods and services (1687/1998)
  • Geographic and population coverage (1688/1998)
  • Treatment of tariffs (2646/1998)
  • Treatment of insurance (1617/1999)
  • Revised sub-indices (1749/1999)
  • Treatment of products in the health, education and social protection sectors (2166/1999)
  • Timing of entering purchaser prices (2601/2000)
  • Treatment of price reductions (2602/2000)
  • Treatment of service charges (1920/2001)
  • Minimum standards for revisions (1921/2001)
  • Common index reference period (1708/2005)
  • Temporal coverage of price collection (701/2006)
  • Sampling (1334/2007)
  • Seasonal products (330/2009)
  • Weights (1114/2010)
  • Owner-occupied housing (93/2013)
  • Common index reference period (2015/2010)

 

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

The rules applied for treating the data set with regard to statistical confidentiality are described in the Section 17 of Statistics Law.

Legal basis:

  • 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;
  • Nacional Statistics Law

 

7.2. Confidentiality - data treatment

Data are published in aggregated form and don't allow statistical units to be identified, either directly or indirectly 


8. Release policy Top

In line with the Community legal framework and the European Statistics Code of Practice Eurostat disseminates European statistics on Eurostat's website (see point 10 - 'Accessibility and clarity') respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably. The detailed arrangements are governed by the Eurostat protocol on impartial access to Eurostat data for users.

8.1. Release calendar

The release calendar is publically available on the CSB homepage.

8.2. Release calendar access

Harmonized consumer price index release calendar

 



Annexes:
Release calendar
8.3. Release policy - user access

The release calendar is publically available on the CSB homepage.

Data are made available to all users simultaneously.

There are no specific users that are granted special or pre-access to HICP data.


9. Frequency of dissemination Top

Monthly


10. Accessibility and clarity Top

For data users, HICP indices are available in the CSB database.

HICP Flash Estimates are not published.

 

10.1. Dissemination format - News release

No news release is issued for the HICP.

10.2. Dissemination format - Publications

The HICP is published in the CSB database.

10.3. Dissemination format - online database

HICP data available in CSB database.



Annexes:
Harmonized consumer price index (HICP)
10.4. Dissemination format - microdata access

HICP micro-data are not disseminated. 

10.5. Dissemination format - other

None.

10.6. Documentation on methodology

The HICP Methodological Manual provides the reference methodology for the production of HICP.

10.6.1. Documentation on methodology - national specifics

HICP metadata are available on the CSB homepage.



Annexes:
HICP metadata
HICP metadata
10.7. Quality management - documentation

Reports about HICP compliance monitoring which was carried out in July 2007 and March 2013 are available on Eurostat webpage.


11. Quality management Top

The Quality Management System (implemented in July 10, 2013), developed in accordance with the standard LVS EN ISO 9001: 2009 "Quality Management Systems. Requirements ". The quality management system has been developed and implemented with the aim of continuously improving the operation of the CSB, ensuring the effective execution and management of the processes implemented by it.

Management Systems of the Central Statistical Bureau (CSB) are certified according to requirements of ISO 9001:2015 standard "Quality management systems – Requirements" and information security management system standard ISO 27001:2013. 



Annexes:
European Statistics Code of Practice
11.1. Quality assurance

11.1.1. Quality management - Compliance Monitoring

Compliance Monitoring

11.1.2. Quality assurance - national specifics

Controls on the quality of the data
Eurostat carried out a HICP compliance monitoring 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.
Staff of CPI unit constantly reviews 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

11.2.1. Compliance monitoring - last report and main results

Compliance Monitoring

11.2.2. Quality assessment - national specifics

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.


12. Relevance Top
12.1. Relevance - User Needs

In addition to being a general measure of inflation, the HICP is also used in the areas of:

  • wages, social benefit and contract indexation;
  • economic forecasting and analysis;
  • measuring specific price trends;
  • accounting purposes and deflating other series;
  • inflation targeting by central banks;
  • cross-country economic comparisons.

 

The euro area (evolving composition) index is used by the European Central Bank (ECB) as the main indicator for monetary policy management. The ECB and the European Commission's Directorate-General for Economic and Financial Affairs (DG ECFIN) use the HICP for assessing price stability and price convergence required for entry into European Monetary Union.

Other users include: National Central Banks, financial institutions, economic analysts, the media and the public at large.

12.1.1. User Needs - national specifics

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 are calculated and transmitted to Eurostat for all ECOICOP categories of goods and services for which there are significant expenditures according to NA and HBS data, or represent at least one part in a thousand of the total expenditure.


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.

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

The full set of HICPs is published each month according to a pre-announced schedule, usually between 15 and 18 days after the end of the reference month. Each year, the January news release is published at the end of February to allow for the annual update of the weights of individual product groups and the relative country weights of Members States in the country-group aggregates.

The euro area flash estimate is published on the last working day of the reference month or shortly after that.

14.2. Punctuality

Since the March 1997, launch of the HICP release, the HICP for the country groups aggregates has always been published on the pre-announced release dates.


15. Coherence and comparability Top
15.1. Comparability - geographical

HICPs across Member States are comparable. Any differences at all levels of detail should only reflect differences in price changes or expenditure patterns.

To this end, definitions and classifications have been harmonised in a series of legal acts. The HICP is produced according to these minimum standards that may be applied with some flexibility as long as they result in an index that is estimated to differ systematically by less than or equal to 0.1 percentage points on average over one year against the previous year from an index compiled following the minimum standards (Article 4 of Council and Parliament Regulation (EU) 2016/792).

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.
Gambling and games of chance are included in the national CPI but excluded from the HICP; expenditure of residents abroad are included in the national CPI.

15.4. Coherence - internal

The HICPs are internally 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

The HICP series, including back data, is revisable at any point in time under the terms set in Commission Regulation (EC) No 1921/2001 of 28 September 2001. The published HICP data may be revised for corrections, and new or improved information.

17.1.1. Data revision - policy - national specifics

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

18.1.1. Weights

The weights used for index calculation are annual average weights derived mainly from the National Accounts and Household Budget Survey (HBS). Additional sources used to calculate the weights include administrative data, branch statistics data, as well as information provided by enterprises and retailers. The weights reference period is the year T-2. The weights are updated annually and price–updated to December T-1.

18.1.1.1. Compilation at elementary aggregate level

The lowest level of aggregation where explicit weights are introduced is ECOICOP 5-digit sub-class level.

The weights derived from the National Accounts are used for ECOICOP 5-digit sub-class level and for elementary product groups the HBS data and additional sources are used.

The weights are updated annually and price–updated to December T-1.

18.1.1.2. Compilation of sub-index weights.

All weights at sub-index level are derived from National Accounts data T-2.

18.1.1.3. Reference period higher levels

The weights reference period is the year T-2. The weights are updated annually and price–updated to December T-1.

18.1.1.4. Weights - plausibility checking

The weights in all levels are annually updated according NA, HBS and additional sources as administrative data, branch statistics data, as well as information provided by enterprises and retailers. 

18.1.2. Prices

The price data is based on a survey.

18.1.2.1. Data Source - overview  

Restricted from publication

18.1.2.2. Scanner data - general information

Scanner data currently are not used for price collection.

18.1.2.3. Bulk web scraping - general information

Web scraped data currently are used for data collection of 9 - 11 year old used cars.

Prices are collected from internet advertisement site.

18.1.3. Sampling design and procedure

18.1.3.1. Sampling design: regions - general information

The consumer price survey is conducted in Riga and 10 other towns covering the whole territory of the country.

18.1.3.2. Sampling design: outlets - general information

All types of outlets, from which prices are collected, are chosen to represent the existing trade and services network, and usually they are based on the three main criteria: popularity among consumers, significant turnover from consumer sales and availability of goods and services included in the HICP basket. The sample of price recording places is regularly updated. If a shop is closed down it is replaced by the equal one. The sample also includes open markets.

18.1.3.3. Sampling design: products - newly significant goods and services

Relevant market information is collected throughout the year by CPI unit staff, including price collectors. Information from HBS is analysed regularly with an aim to identify new significant products. Towards the end of the year CPI unit decides which products should be introduced into sample and which ones – excluded. The weight of the sub-index, number of elementary aggregates in the sub-index and volatility of price development are main criteria, which are taken into account making a decision. Then CPI unit 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 with an aim to obtain reference period prices.

18.2. Frequency of data collection

Price data is collected every month.

18.3. Data collection

18.3.1. Price collection surveys

Survey data are collected by price collectors visiting stores, using internet or by phone. In addition, specific product prices are collected centrally by CPI unit staff.

18.3.2. Timing of price collection

The prices of all goods and services, except for the prices of fuels for transport, are recorded every month from 4th to 20th date. Fuels for transport prices are recorded from 1st to 25th date.

18.4. Data validation

First steps of data validation are carried out at the time the data are entered into database by price collectors. A number of logical and arithmetical validation rules allow to avoid data entry errors.

For the detection of otliers spatial and historical dimensions of the prices and price movements are examined during the validation process in order to detect any unusual price development, which then is subject of further investigation. CPI unit staff reviews both individual and aggregated indices to check whether the price movements are in line with market information.

18.4.1. Data validation - price data

First steps of data validation are carried out at the time the data are entered into database by price collectors. A number of logical and arithmetical validation rules allow to avoid data entry errors.  

In case of significant price change (20%) additional notification appears for price collectors and such changes if not an entry error should be confirmed with a comment.

18.5. Data compilation

18.5.1. Index formulae

HICP is Laspeyres-type index.

Arithmetic mean of the prices is used for elementary aggregates.

Number of decimals that are used for HICP:

  • Price observations - 2
  • Weights - 12
  • Compilation and transmission of index and rates of changes - 12
  • Publication of index - 2
  • Rates of change - 1

Rounding is used for compilation of index. Truncation is not used.

18.5.2. Aggregation method

Price indices of lower aggregation levels are calculated as the ratio of arithmetic mean prices in the comparison and the reference periods.

For the calculation of higher level price indices and the overall HICP a Laspeyres-type formula that expresses the weighted arithmetic mean value of the lower-level price indices is used:

 

18.5.3. Chaining and linking method

The reference period used in the HICP calculations is the average value of 2015 (2015 = 100). If December of each year is the linking month, then price index in month m in year G is calculated as follows:

I 0 m , G = I 0 D e c , 0 ( g = 1 G 1 I D e c . g 1 D e c . g ) I D e c , G 1 m , G ">

18.5.4. Quality adjustment

Price collectors perform the initial steps for quality adjustment, 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. Staff of the CPI unit makes the final quality adjustment.

For fruit, vegetables, clothing, footwear, audio recordings, books in rapidly-changing market direct comparison is the primary (most often used) quality adjustment method. For other product categories, mostly the bridged overlap in case of major changes and direct comparison in case of minor changes is used.

Divisions Bridged overlap, % Direct comparison, % Option cost, expert estimation, etc. %
01 1.3 2.9 0.3
02 0.9 0.5 0.3
03 1.0 7.1 0.4
04 1.3 1.5 0.3
05 2.2 1.8 0.6
06 0.6 0.6 0.1
07 1.2 2.1 0.1
08 1.2 6.4 1.4
09 2.0 2.7 0.3
10 0.1 5.0 0.0
11 1.0 1.3 0.1
12 1.2 2.1 0.4

50% option cost or indirect option cost regarding fuel consumption approach for new cars in case of minor changes is used. 

For second-hand cars, supported expert judgement based on age and mileage is used, combined with direct comparison or bridged overlap.

In special cases judgmental (expert) adjustment and quantity adjustment are used as well.

There are no automatic quality adjustment procedures for any product group. Instead, the choice of method depends on the specific replacement situation and selected replacement product-offer.

18.5.5. Seasonal items - general information

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

Not applicable.


19. Comment Top

Informaton about HICP and HICP_CT metadata can be found on CSB homepage.



Annexes:
Metadata


Related metadata Top


Annexes Top