Owner-occupied housing in the Norwegian HICP

In this paper, Statistics Norway analyses the impact of including Owner-Occupied Housing (OOH) in the Norwegian Harmonized Index of Consumer Prices (HICP) based on the net acquisition approach. Expenditure shares for OOH according to the net acquisition approach are estimated based on different sources. Different candidates for measuring the price development are also evaluated in relation to the Technical Manual on OOH for HICP. This analysis shows that the inclusion of OOH by using the existing House Price Index increases the Norwegian HICP, on average, by 0.5 percentage points per year in the period 1996 to 2007. The period in question is characterised by a very sharp increase in housing prices.