Institute Statistics of Albania (INSTAT)

Price Statistics 

'Vllazën Huta' Street, Building No.35, Entrance1, 1017, Tirana, ALBANIA

The harmonised index of consumer prices (HICP) is a consumer price index (CPI) that is calculated according to a harmonised approach. It measures the change over time in the prices of consumer goods and services acquired by households (inflation).

Due to the common methodology, the HICPs of the countries and European aggregates can be directly compared.

European classification of individual consumption according to purpose (ECOICOP)

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

The main statistical variables are price indices.

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

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

There are no deviations from the target population.

3.7.1. Geographical coverage

The HICP refers to the economic territory of a country as referred to in paragraph 2.05 of Annex A to ESA 2010, with the exception that the extraterritorial enclaves situated within the boundaries of a Member State or a country are included and the territorial enclaves situated in the rest of the world are excluded.

3.7.2. Coverage error regions

The economic territory of Albania is the same as the geographic territory on which Albanian government institutions conduct administrative control. The HICP covers the entire area of the country.

3.8.1. Start of time series

The HICP series started in January 1997.

3.8.2. Start of time series - national specifics

The Albanian HICP is available from 2016 to the present.

2015=100

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).

HICP is a monthly statistics.

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 the Council of 11 May 2016 (OJ L 135) sets the legal basis for establishing a harmonised methodology for the compilation of the HICP and the HICP-CT.

This regulation is implemented by Commission Regulation (EU) 2020/1148 of 31 July 2020.

Further documentation, can be found in Eurostat’s website - HICP dedicated section, namely recommendations on specific topics, under the methodology page, and guidelines, under the quality page.

No data-sharing arrangements are in place.

Privacy preservation

 This privacy notice is intended to inform personal data subjects about the manner of collection, processing, dissemination, storage, and security measures taken for their data.

Based on:

• The Constitution of the Republic of Albania,
• Law No. 9888, dated 10.03.2008 'On the Protection of Personal Data'
• Law No.17 / 2018 'On official statistics'

INSTAT performs the lawful processing of personal data by respecting and guaranteeing the fundamental rights and freedoms of persons and, in particular, their right to privacy. Data related to specific statistical units, which are collected directly or indirectly for statistical purposes from administrative or other sources, are processed based on the principle of statistical confidentiality, which implies the prevention of the use of data collected for non-statistical purposes and their unlawful disclosure.

PROTECTION OF DATA

Is based on:

1. a) processing that is fair and lawful;
2. b) a collection for specific, clearly defined, and legitimate purposes and shall be processed in a way that is compatible with these purposes;
3. c) adequate data, which are relevant to the purpose of their processing and not excessive in relation to such purpose;
4. d) accurate data, and where necessary, updated; every reasonable step must be taken to ensure that data which are inaccurate or incomplete, having regard to the purposes for which they were collected or for which they are further processed, are erased or rectified;
5. e) keeping data in a form that allows the identification of data subjects for no longer than it is necessary for the purpose for which they were collected or further processed.

PROCESSING FOR SCIENTIFIC AND STATISTICAL RESEARCH

1. Personal data collected for any purpose may be further processed for historic, scientific, or statistical research purposes provided that the data is not processed in order to take measures or decisions related to an individual.
2. The disclosure of sensitive data for scientific research shall take place only in cases of important public interest. Personal data shall be used exclusively by individuals who are bound by confidentiality.
3. When data processing is made in a manner that allows the identification of the data subject, the data should immediately be encrypted in order for the subjects to be no longer identifiable. Encrypted personal data shall be used exclusively by individuals bound by confidentiality.

HICP data is represented in index or percentage from (rates) and is therefore not treated for confidentiality.

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 Protocol on impartial access to Eurostat data for users.

The HICP is released according to Eurostat’s Release calendar.

The calendar is publically available and published at the end of the year for the full following year.

In line with article 17 of Law No.9180 'On Official Statistics', dated 05.02.2004, as amended, the INSTAT disseminates statistics on the INSTSAT website and other media for simultaneous access, respecting professional independence and in an objective, professional and transparent manner in which all users are treated equitably.

The following dissemination channels are used to release the results of HICP:

• Website - online release,
• Written requests,
• Special publications,
• Data request, session available for external users through this link: Data Request | Instat

HICP is published in accordance with the release calendar on or around the 18th of each month (T+18 days).

The users are informed about any delay in publication through the publication calendar where it is specified the new date of release and the reasons for not being published on time.

Monthly

CPI/ HICP news release gives information for monthly and annually changes in prices. The format of news releases has not changed and the template was prepared from dissemination sector, which detects also the publication date. The CPI/HICP news releases are published online in INSTAT web page.

We do not publish flash estimate.

CPI/ HICP news release gives information for monthly and annual changes in prices. The format of news releases has not changed and the template was prepared from the dissemination sector, which detects also the publication date. The CPI/HICP news releases are published online on the INSTAT web page.

All data are published on INSTAT website:

• Prices
• Books

The database can be accessed in the following link: PxWeb - Select table (instat.gov.al) #Prices

HICP data are not available at microdata level, because of preserving the confidentiality.

Users can submit specific requests for data through the INSTAT website in a dedicated session to contact in the following link: Data Request.

The HICP Methodological Manual provides the reference methodology for the production of HICP. (https://ec.europa.eu/eurostat/web/products-manuals-and-guidelines/-/KS-GQ-17-015)

10.6.1. Documentation on methodology - national specifics

A short description of the methodology used to compile the HICP is published on the INSTAT web page: Harmonized Index Of Consumer Price.

For internal users, Price Unit documents all processes and procedures used to calculate HICP.

See Quality Reports | Instat.

Please see the European Statistics Code of Practice.

11.1.1. Quality management - Compliance Monitoring

Compliance Monitoring

11.1.2. Quality assurance - national specifics

INSTAT is committed to ensuring the highest quality with respect to the compilation of statistical information. In accordance with Law No.17/2018 on Official Statistics, INSTAT uses statistical methods and processes in compliance with internationally recognised scientific principles and standards and it conducts ongoing analyses of the statistics to improve their quality and ensure that statistics are up-to-date. In performing its tasks, it follows the general principles of quality management from the European Statistics Code of Practice. INSTAT declares that it relies on the following principles: impartiality, quality of processes and statistical products, user-oriented, employee-oriented, effectiveness of statistical processes, and reducing respondent burden. Collected data are compared in terms of internal coherence, thus ensuring the quality of the final product.

11.2.1. Compliance monitoring - last report and main results

Not available.

11.2.2. Quality assessment - national specifics

CPI and HICP are the best indicators to measure inflation in Albania (CPI) and to compare inflation across countries in European Union (HICP). The Prices Unit checks prices every month. If we notice that a price has a big difference compared to the previous month, the interviewer is contacted to confirm this change and if it is well justified, this price is included in further calculations. Else, the interviewer should verify once more the collected price. In the reporting format used to collect prices, a logical control is implemented to signalise prices that have a monthly change of + or – 25%. In this reporting format, there is also an explanatory code for different types of big changes in prices.

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

Users of ICP/HICP are classified as external and internal. External users are:

• Institutions of public administration,
• Universities,
• National and international NGOs,
• Private businesses,
• Researchers, students, and other similar groups.

Publication of the results of CPI is sent to specific groups of users.

Internal users are those within INSTAT, who use CPI and HICP results as input for their work. These users are:

• National Account Directory,
• Short-Term Statistics.

In 2022 INSTAT conducted a User Satisfaction Survey from INSTAT publications. The survey results show that the overall quality of Harmonised Index of Consumer Price is rated 3.68 (73.67 %) on a scale of 1 (very poor) to 5 (very good).

Page Views (Hits) about HICP in 2022 are around 3,807 clicks.

The completeness degree of CPI for 2022 is 100%. This calculation has taken into account the indicators required by EUROSTAT pursuant to the Regulation 'Commission Regulation (EC) 1749/99, 23 July 1999'.

The accuracy of HICP is generally considered to be high. There is methodological accuracy in regards of weights and prices and calculations according to European Regulations. The products in the basket are selected using HBS data. The goods and services selected are those of most importance to the customers, have a significant share in total consumption and best reflect the changes of prices of related products. Prices are collected in different type of outlets, supermarkets, markets, etc., in 11 prefectures in the country, some of them also via internet and by phone. For the calculation of weights for HICP expenditures of resident and non-resident households in Albania (domestic concept).

The methodology for calculating the precision of HICP is not applicable, because HICP is based in non-probability sample. To reduce errors we have increased the number of observations for each product.

Nonresponse in observation level is calculated using retail outlets that refuse to give information and enumerators who do not find the required product in the outlet. The non-response rate in observation level for CPI/HICP is 0 %. The non-response rate in variable level for CPI/HICP is 0 %.

The full set of HICPs is published each month according to Eurostat’s Release calendar, usually between 15 and 18 days after the end of the reference month.

Each year, the January release is published at the end of February to allow for the annual update of the weights, both 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.

Since the March 1997, launch of the HICP release, the HICP for the country groups aggregates has always been published on the dates announced in Eurostat’s Release calendar.

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

To this end, concepts and methods have been harmonised by means of legislation. HICPs that deviate from these concepts and methods are deemed comparable if 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 (Article 4 of Council and Parliament Regulation (EU) 2016/792).

CPI/HICP data are fully comparable over time. There have been several improvements in methodology since HICP was introduced with the aim of improving the reliability and comparability of HICP. However, previous indices are recalculated based on the latest methodology so they can be compared over time.

CPI and HICP are two separate indicators to measure inflation. Their main difference is the weight concept. HCIP is based on each monetary unit (ALL) spent in the territory of Albania, from Albanians and non-Albanians. CPI is based on each monetary unit (ALL) spent by Albanians inside and outside the territory of Albania. Other changes are:

CPI:

• Weights of goods and services are calculated based on HBS data,
• Weights are expressed in percentages,
• Monitored by INSTAT.

HICP:

• Weights of goods and services are calculated based on National Accounts data,
• Weights are expressed in per thousand,
• Monitored by EUROSTAT,
• Imputed rents are excluded.

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

Not available

The HICP series, including back data, is revisable under the terms set in Articles 17-20 of Commission Implementing Regulation (EU) 2020/1148.

17.1.1. Data revision - policy - national specifics

The revision policy of CPI/HICP is done in accordance with the general revision policy and errors treatment policy introduced by INSTAT. See links below: 

• STATISTICAL REVISION POLICY (instat.gov.al)
• THE ERRORS TREATMENT POLICY (instat.gov.al)

The published HICP/CPI data may be revised for mistakes, new or improved information, and changes in the system of harmonised rules. The Albanian HICP has not been revised since it is published for the first time.

18.1.1. Weights

The main source is National Accounts data.

18.1.1.1. Compilation at elementary aggregate level

The HICP weights reflect the structure of the FMCE (domestic concept). National accounts are the main source of data for the construction of the HICP weights at the highest levels of aggregation. HICP in year t is calculated with weights of year t-2. Weights are updated every year.

18.1.1.2. Compilation of sub-index weights

Not available.

18.1.1.3. Compilation of sub-index weights

The reference period of the data used for the calculation of the weights of sub-indices (ECOICOP sub-classes and higher) is t-2

18.1.1.4. Weights – plausibility checking

The review and update of weights at lower levels is done during the annual updating of the HICP weights. The constructed weights are analysed and validated at all hierarchical levels of aggregation (from lowest EA level to general index). Plausibility checking activities include:

• Analysis of consistency with other available sources of information - administrative sources, other statistical surveys, market researches, etc.;
• Checking of the internal consistency of the weights;
• Analysis of outlined trends (absolute and relative) in comparison with the previous year weights to detect possible anomalies.

18.1.1.5. Price updating

Each December of the previous year.

18.1.1.6. Compilation of total household final monetary consumption expenditure

We use deflators of HICP for the compilation of total household final monetary consumption expenditure.

18.1.2. Prices

Price data are based on a survey.

18.1.2.1. Data Source - overview  

Prices for CPI/HICP indices are based on survey data.

18.1.2.2. Scanner data - general information

Not available.

18.1.2.3. Web scraping - general information

Not available.

18.1.3. Sampling

18.1.3.1. Sampling design: locations for survey

Albania has 12 prefectures and for CPI and HICP calculations 11 prefectures are used and Kukës prefecture is covered by the Dibër prefecture

18.1.3.2. Sampling design: outlets

Data are collected from the most representative retail outlets in the country. In the absence of a register of outlets with the necessary characteristics, the selection of them is done on the basis of the knowledge of price collection and regional statistical specialists, based on instructions prepared for this aim by the staff of the Price Unit at INSTAT. The main criteria for the selection of outlets in each locality are the coverage of the available 10 shopping areas within each location and the representation of different types of outlets.

18.1.3.3. Sampling design: newly significant goods and services

In December of each year updating of goods and services of the basket is performed, including new products considered as a representative during previews year.

Treatment of price reductions: Seasonal sales, other sales prices, and reduced prices (e.g. special offers, discounts, etc.) are included in the index when they are available to all potential consumers.

Treatment of seasonal products: Seasonal products are treated based on the Commission Regulation (EC) No 330/2009 of 22 April 2009 (repealed and replaced by Commission Implementing Regulation (EU) 1148/2020). Seasonal products during the year are treated with fixed weights; it means that the yearly indices of seasonal products are calculated with fixed weights. Prices for seasonal products (fruits and vegetables) during out-of-season are imputed:

• In the first month of the out-of-season period, the monthly typical price is calculated as average prices for months,
• From the second month of the out-of-season period, the estimated monthly price is applied for each product that is out-of-season. To obtain the price ratio for estimation, only prices for products available in the current and previous months are used.

Price data are collected every month.

18.3.1. Price collection surveys

Most of the prices are also observed by regional price collectors. (12 price collectors located in 11 districts). They have a pre-prepared schedule for outlet visits. The main method used for price collection is face-to-face. Once a year, in November-December, the sample of outlets, products, and services is reviewed and updated. Meetings with price collectors are organised once a year or twice. 

18.3.2. Timing of price collection

Prices of most goods and services are collected each month between the 10th and 25th of the month. 

The validation is done by Central Statistical Office.

18.4.1. Data validation - price data

Data validation is carried out at different levels of the HICP compilation.

The first control of prices is done by price collectors on the field, before sending price data to the Regional Office.

The second validation is carried out by the staff of the Regional Office. The price reporting format has an automatic signal for incorrect pricing found during the data entry process.

Third validation is carried out by the Central Office (Price Statistics Sector). The Price Statistics staff carry out the verification of the data received using the data control program designed for the monthly checks against data entering errors and mistakes. If there are doubts about the reliability of one or several prices, these prices are checked once again by contacting price collectors or, if necessary, checked directly in the field.

Each case (problematic price) is considered individually and all modifications are done on the basis of relevant information.

18.5.1. Elementary price index formulae

HICP is a Laspeyres-type index

The price indices for elementary aggregates are calculated as a ratio of geometric mean prices. For publications of index figures and for published rates of change

18.5.2. Aggregation of different data sources

Calculations of the index at a detailed level

Elementary indices are calculated using the un-weighted geometric mean of collected prices for each product.

Calculation of the index in aggregate level and the total index

Aggregated index and total index are calculated using Laspeyres formula. The relative prices are aggregated geographically to form product indices on items for the whole Albania. Aggregation over items then gives the CPI of Albania.

A SQL Application is used for data processing.

18.5.3. Chaining, linking and splicing methods

We use a chain linking method for the calculation of HICP with December being the link month, in compliance with HICP requirements.

18.5.4. Quality adjustment – Detailed information

Adjustments for quality change: When the CPI/HICP is calculated, it is important that the products are priced without any change in quality, because only 'pure' price changes, not any due to changes in the quality of the products observed, should be reflected.

The most commonly used methods of dealing with changes in product quality are:

• Package-size adjustment: The value of a change in package size, as a proportion of the price, is assessed as the relative change in package-size.
• Annual overlap: For many products new samples are selected each year during the annual revision of the consumer basket. December is taken as the 12 link month when prices are collected for both the old and new samples. Quality differences between these two samples are then eliminated by the 'annual overlap' method.
• Direct comparison: Price collectors are instructed to measure the price for the same variety throughout the year. If the variety disappears permanently from the market, they should choose another with the most similar quality. In these cases, direct comparison is applied because the difference in quality between the old and new varieties is minor.
• Supported judgment: This means that the value of the quality change between a replaced and replacement product offer is calculated by using supplementary information sources.

Central office staff deals with quality adjustments. At the regional level, interviewers cannot make adjustments; they are only instructed to report to the central office for any considerable change in the quality of the substituting product.

No seasonal adjustment is performed.

18.5.5. Seasonal items

The standards for the treatment of products in the health, education, and social protection sectors set under Commission Regulation No 2166/1999 (repealed and replaced by Commission Implementing Regulation (EU) 1148/2020) were implemented in December 2015, the beginning of the official series. The regulation is applied to fruit and vegetables only, as seasonality in clothing is not significant due to the local climate.

Seasonal products are treated based on the Commission Regulation (EC) No 330/2009 of 22 April 2009, on seasonal products (repealed and replaced by Commission Implementing Regulation (EU) 1148/2020). Seasonal products during the year are treated with fix weights; it means that the yearly indices of seasonal products are calculated with fix weights. Prices for seasonal products (fruits and vegetables) during out-of-season are imputed:

• In the first month of the out-of-season period, the monthly typical price is calculated as average prices for months,
• From the second month of the out-of-season period, the estimated monthly price is applied for each product that is out-of-season. To obtain the price ratio for estimation, only prices for products available in the current and previous months are used.

Not applicable.