276776
/en/priser-og-prisindekser/statistikker/hkpi/maaned
276776
statistikk
2017-10-10T08:00:00.000Z
Prices and price indices;Income and consumption
en
hkpi, Harmonized index of consumer prices, HCPI, inflation, EU countries, EEA countries, price trends, price increases, product groups (for example food, housing, transport), service groups (for example telecom services, hotels and restaurants)Consumer prices , Consumption, Prices and price indices, Income and consumption
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Harmonized index of consumer prices

As of 10. November, the monthly article with HICP figures will cease to exist. HICP index value, monthly change and 12-month rate will be published directly in our statbank table 03700 at 08:00 each publication date.

Updated

Next update

Key figures

1.6 %

Year-to-year growth for HICP in September 2017

About the statistics

The Harmonized index of consumer prices (HICP) is an indicator used to compare price developments between European countries. HICP figures for the country groups EU, EA and EEA, and individual country series are available from Eurostat. For more detailed information about the price development in Norway, see: Consumer Price Index.

Definitions

Definitions of the main concepts and variables

Definition of the main concepts

Expenditure shares are proportional to the consumption of a simple good and consumption in total in households, and are obtained from the consumption in households in National Accounts.

A Laspeyre price index is a price index where the weights remain fixed. A chained Laspeyres price index is an index linked by Laspeyres indices with different sets of weights. New sets of weights are incorporated into the index each January.

Price reference month defines the time of reference for new weights, updated sample and base prices used for calcultaion in the following year.

Euro-zone consists of EU Member States which participate in the Euro Cooperation; Austria, Belgium, Germany, Greece, Spain, France, Finland, Italy, Ireland, Netherlands, Portugal, Luxembourg, Cyprus, Malta, Slovakia, Slovenia, Estonia, Latvia og Lithuania.

EU - the European Union - consists of the Euro-zone Member States in addition to Denmark, Sweden, United Kingdom, Croatia, Romania, Poland, Bulgaria, Hungary and Czech Republic .

EEA - the European Economic Area - includes all the EU Member States in addition to Norway, Iceland and Liechtenstein.

"Domestic concept" - HICP covers purchases of goods and services from all kinds of private households (including tourists) inside the economic territory of a Member State.

Definition of the main variables

Price: Actual sales price including charges, fees and subsidies of goods and services offered to households. Price per 15 th each month.

Indicator derived from the HICP

HICP-CT, harmonized index of consumer prices with constant taxes, is an indicator where the weights and the calculations are identical to the HICP. The HICP-CT is also based on actual, observed prices, but those are adjusted for nominal tax rates changes (except value added tax). The HICP-CT takes into account the following taxes:

1. Value added tax

2. Alcohol tax

3. Tobacco tax

4. Petrol tax

5. Diesel tax

6. Electricity tax

7. Taxes on mineral products

8. Chocolate tax

9. Tax on non-alcoholic beverages

10. Sugar tax

11. Tax on disposable beverage packing

12. Aviation tax, terminal and security charges

13. Purchase tax on vehicles, weight tax

14. Purchase tax on vehicles, piston displacement tax

15. Purchase tax on vehicles, motor effect tax

Standard classifications

In the production and publication of HICP the ECOICOP are used. For further information: ECOICOP  

Administrative information

Name and topic

Name: Harmonized index of consumer prices
Topic: Prices and price indices

Next release

Responsible division

Division for Price Statistics

Regional level

National level only.

Frequency and timeliness

Monthly.

International reporting

Harmonized Indices of Consumer Prices for Norway are reported monthly to EUROSTAT.

Microdata

Data on micro level, information about sample units, population, and catalogues are stored in SAS and Oracle databases.

Background

Background and purpose

The statistics is primarily designed for international comparisons of price development.

In 1991 the Treaty on European Union (the "Maastricht Treaty") laid down various convergence criteria that increased the demands for comparable price indices. An international cooperation started in 1993 where the objectives were to obtain comparable measures of price development. HICP was first published in 1997. HICPs are produced in all Member States in addition to Iceland and Norway. From 2011 National Account data are the main weigh source and replaced the Household Budget Survey which had been used since 1997.

Users and applications

The HICP has to a large extent the same users as the CPI, which are the public sector (ministries, the Bank of Norway) and the financial sector. Within Statistics Norway the HICP is used in the context of analysis and research. The Central European Bank is also an important user. The Eurozone index is used as a main indicator for monetary policy management for the Euro-zone. Statistics Norway report monthly the Norwegian HICP to Eurostat and the HICP is preliminary until the Eurostat publication.

Equal treatment of users

No external users have access to the statistics and analyses before they are published and accessible simultaneously for all users on ssb.no at 8 am. Prior to this, a minimum of three months' advance notice is given inthe Statistics Release Calendar. For more information, go to: equality priciples

Coherence with other statistics

Some data are collected from the Construction Cost Index for Residential Buildings and from the Wage Statistics. The traditional CPI is the foundation of the HICP.

Legal authority

The Statistics Act of June 16, 1989 number 54 , §§2-2 and 2-3.

EEA reference

Harmonized Indices of Consumer Prices are regulated through a number of acts: Legislation related to HKPI

 

Production

Population

The population is defined as all goods and services offered to households in Norway. Prices and expenditure shares of a sample of products and services are being measured. Expenditure shares (weights) are based on data obtained from the National accounts, while prices are collected each month from a representative sample of retail and service outlets. This sample is selected from all outlets in Statistics Norway's Business Register defined as the industries 45, 47, 55, 56, 77, 95 and 96 (SIC07 -The Standard Industrial Classification). In addition, prices are collected with unequal frequency from different outlets or parties (including households) mainly on services within the industries 35, 49, 50, 51, 53, 60, 61, 65, 66, 69, 77, 79, 85, 86, 88, 90, 91 and 93. Household samples are selected from the "Central Population Register".

The sample of goods and services is nearly fully harmonized with the CPI sample. The cost for owner-occupied housing that consists of about 12 per cent of the CPI is not included in the HICP. In addition Games of chance and Live insurance is not included.

Data sources and sampling

The CPI is based on the following sources: Questionnaires, electronic data from firms and dwellings, turnover information from Statistics Norway's Business Register, commodity trade statistics, and budget shares from the household budget survey.

A sample of about 650 goods and services is selected. In addition, scanner data of around 14 000 goods are used for the calculation of sub-index for food and non-alcoholic beverages.

Representative goods and services in the sample are selected based on information from the annual household budget survey and branch information. The sample of goods and services is basically kept constant, but is regularly updated when new important products enter the market while outdated products are removed. Prices are collected from a sample of outlets, households and municipalities. The outlets comprise a panel sample where one sixth of the outlets are replaced each year. The sample amounts to about 2 200 firms. The sample of households for the survey of rents amounts to 2 500 tenants. The outlets/firms are selected from Statistics Norway's Business Register in proportion to the firms turnover i.e. large firms have a bigger probability of being chosen. The selection is made after stratifying the population by industry and region. The probability to be selected is proportional to the size of the turnover. The sample does not overlap the sample of the Index of Retail Sales .

Another sampling methodology is used for sub-surveys directed towards municipalities.

Collection of data, editing and estimations

The main part of the prices are collected by means of electronic questionnaires, which are available to the outlets around the 10th of each month, and have to completed by the 15th. Statistics Norway also receives electronic scanner data from grocery firms monthly. Car prices and price information on alcoholic beverages are received electronically. Tariffs on electricity are collected from the Internet. Rentals for tenants are collected by means of web quiestionnaires and CATI - Computer Assisted Telephone Interview - directly from households.

An outlet uses an average 90 minutes to fill out the questionnaires throughout the year, which means that the sample of outlets uses in total about 3 300 hours or less than 520 days of work each year.

Individual firms fill out the questionnaires and firms who fail to send in the forms are sent letters of reminder a week after the due data. Firms are given a week to comply after the letters of reminder. Firms who fail to comply receive a "notice of fine" a week after the new deadline. To avoid paying the fine, firms must submit completed forms to Statistics Norway within 6 to 7 days.

After checking the questionnaires manually, they are registered in an optical scanner. The prices are thereafter put through tests, which identifies duplicates and observations with large price changes from the previous month. The price material are then sorted by item and region and further edited. Finally, prices are controlled at item level and item group level. Generally firms are not contacted during the editing process.

Indices at micro level are calculated for each commodity in each region (the country is divided into 8 different regions) by an unweighted geometric mean. Each regional index is then weighted into a national index for each commodity based on turnover shares. Aggregation to higher levels is done by the Laspeyre formula where the weights are based on the National Accounts. Weights are updated annually and price updated to the reference period. The price reference period is December and short-term indices are chained to long-term indices where the index reference period is 2015, i.e. 2015 = 100.

Seasonal adjustment

Not relevant

Confidentiality

Data collected from firms and households are subject to secrecy and are to be kept or destroyed in a secure manner. Any use of the data must be in accordance with the rules set out by the Data Inspectorate.

Comparability over time and space

All-item indices and year-to-year changes for all the countries are published each month. In addition annual indices and annual change rates are made public. Eurostat produces separate indices for EU, EEA and the Euro-zone. The all-item indices for each country go back to January 1995.

Accuracy and reliability

Sources of error and uncertainty

The questionnaires are formed in such a way that reported prices in the last two months are listed. This method is done to ensure that the prices of the same goods are given. However, outlets may of consideration of convenience copy the previous month's prices instead of the correct prices when filling out the questionnaires. The most obvious cases of this kind are revealed in manual checks carried out when receiving the questionnaires. When a good or service goes out of the market, the outlets are instructed to find a replacement and mark it in the questionnaire. If outlets report a price of the replacement without marking it, the difference in price between the old product and the replacement will incorrectly be registered as a price change of the old product. The extent of this error is unknown.

Questionnaires are registered in an optical scanner and saved electronically. The scanner process is quite reliable and few errors occur. In the same operation, electronic pictures of the questionnaire are produced. This makes it possible to compare the information read optically with actual information on the questionnaire.

Non-response : Each month around 85 to 90 per cent of firms respond. The response increases to about 95 per cent after the process of reminding. Total and partial missing prices are imputed. There are four different algorithms used in estimating missing prices. Imputed prices are either based on the price changes or average prices of the same product in the region or the country as a whole.

Skewness : The sample of goods and services are updated once a year, where new products are introduced and replace old products. The sample of households in the household budget survey is also changed once a year to make the sample of households more representative. In the sample of outlets/ firms, one sixth of the samples are changed each year. Statistics Norway has not done any calculations on the skewness in the Norwegian CPI. International surveys indicate that the sample of goods and services is the source of the largest skewness.

Traditionally non-sampling errors in the CPI are divided into three main types of measurement errors;

a) Income effects which influences consumer behaviour through time;

Households through time face changes in income, which also affect the expenditure shares of different goods and services. To be able to set proper weights in CPI, in each period, the weights in the CPI should reflect the expenditure shares. Therefore the weights are updated yearly. There have not been any calculations done to measure errors caused by non-representative weights.

b) Price effects caused by changes in relative prices;

The price relationship between different goods and services changes over time. This changes also the expenditure share of households and causes the same measurement challenge as the income effects.

c) The unsatisfactory treatment of quality changes;

Statistics Norway has not accomplished separate calculations of these measurement errors in the Norwegian CPI. Calculation of measurement errors and analyses done in USA, Canada, Sweden and Great Britain estimate the measurement errors somewhere between 0.4 to 1.1 per cent measured as annual growth rate. However there are uncertainties in these estimates. Its likely to assume that the Norwegian CPI overestimates the development in the cost of living, but the level is likely to be less than one per cent measured as annual change.

Revision

HICP numbers are rivisable.

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