Price Statistics Working Group. Item 3.3 of the agenda. Methodological Development in the HICP

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1 EUROPEAN COMMISSION EUROSTAT Directorate C: National Accounts, Prices and Key Indicators Unit C-4: Price statistics. Purchasing Power Parities. Housing statistics PSWG /04 Annex Meeting of the Price Statistics Working Group Luxembourg October 2015 Item 3.3 of the agenda Methodological Development in the HICP Annex Summary of methodological changes during 2015

2 Summary of methodological changes during 2015 September 2015 Country Compilation Taxes Prices Weights Implementation of scanner data will be postponed by one year. - Electricity and Water supply: No free electricity and water in Flanders as of January Previously, fixed quantities were - - Apply stratification by retail channels (type of outlet) for COICOP 01. new product : Belgium offered depending on the size of the Exclusion of household free of charge. product : Education: Tuition fees for higher education will increase from October Seasonal products: new product Bulgaria Update in-season : periods for some of the seasonal products Czech Republic - - Denmark Implementation of scanner data from January Changes in tax rates for energy from January 2016.

3 Best-seller approach Tobacco tax: Other services n.e.c.: - Criteria to decide implemented for increase in January Possible changes in if a product is legislation about who seasonal was Additional source pays for the service revised. (internet) for price VAT for E-Books of real estate agents. collection for decreased from (NB: in force since , % to 7% in 1/6/2015, price implemented. January decreased.) Further extension July 2015-June Germany Web scraping implemented since 2015 for: -long distance bus travels, -car rentals, -pharmaceuticals purchased online Sample review: 5 yearly review and implementation of COICOP level 5 Actual rentals: Improved coverage of flats rented out by private landlords. Systematic sample rotation for the price collection of rentals introduced. Improved coverage of regions and age of flats. (NB: ongoing, implementation delayed in some Länder.) Estonia - - Implementation of recommendation on - Water supply and sewerage collection: Ireland the treatment of cars. charges from January Maybe also other recommendations. Greece - -

4 Spain Change of VAT - Re-basing of the - - France rate. CPI will have impact beginning of Croatia weekly price collection for package holidays. Implementation of electronic devices for price collection. Review of composition of elementary aggregates. Start transmission of HICP-CT including back series during second half of Research on consumer profiles for telecom services. Improvements on the implementation of consumption segments. internet purchases (depending on results of HBS 2014). - new product Italy : Cyprus - -

5 Latvia Lithuania Luxembourg Hungary Re-engineering of the validation of primary price data for consumer goods and services. Changes of taxes for tobacco and alcoholic beverages Accommodation services: reduced rate (9% instead of 21%. Alcoholic beverages and tobacco: increased excise duty rates. - Changes in VAT rates (January 2015): 3% --> 3% 6% --> 8% 12% --> 14% 15% --> 17% - Change in excise duty for alcoholic beverages (January 2015) and tobacco (April 2015). AP: Liberalisation of electricity market since 1 January Euro changeover - Implementation of the recommendations on cars and actual rentals. Revision of the list of seasonal products. new product : Malta - -

6 Netherlands Poland Change of price collection methods and index methodology in one clothing store: using web scraping data. the use of scanner data in two drugstores. Implementation of new scanner data and web scrapers expected. Tax increases: (from January 2015): Gas Electricity New cars (from July 2015): Services related to the dwelling Household services (from January 2016): Energy Fuels New cars Tobacco Revision of National Accounts will have an impact on the weights and the all-items yearly rate of change (up to 3 pp). Austria - - Increased frequency - New unit for gas: m 3 of price collection (since August 2014, for passenger beforehand kwh). transport by train. Some school books offered free of charge (from September 2015). - - Passenger transport by train: selected connections (trips) instead of number of kms. Telecom services: Improve coverage, implementation of recommendation on telecoms.

7 - Tax changes Portugal (yearly): Cars Fuels Tobacco Alcoholic beverages Romania - - Second-hand cars: increase in frequency of price collection (from Sales tax on insurance services and special tax on some financial Slovenia every second month services (6.5% -> to twice per month) 8.5%). due to change in data source since July excise duty on soft drinks.

8 Slovakia Re-engineering of index compilation (ongoing). - Passenger transport by railway: Free-of charge traveling of pupils, students, pensioners and of some other passengers in public railway transport since 17 November 2014 (impact in November/December 2014) and approx. 23% decrease of price for weekly ticket for employees in February Gas: - - Passenger transport by railway: The price change had an impact on the selection of representative items and weights for passenger railway transport in Improve representativity of the sample for some COICOP ; e.g Price decrease in autumn Finland - Small changes of taxes for tobacco, passenger cars and vans, energy, fuel oil and electricity. Tax increases possible in 2016 too. Sweden - - U. K. - -

9 Iceland Telecom services: New index calculation method from April 2015 relying on actual price and volume data from providers instead of only measuring changes in tariffs. Changes in VAT rates. Pharmaceuticals: From 1 January 2015 pharmaceuticals offered in hospitals will be treated in the same way as other pharmaceuticals. Before, those pharmaceuticals were free of charge. Change in the data source for the weights from HBS to another source due to problems with data collection and processing for the HBS. - Review of the sample for the national CPI in April Norway - - Switzerland New online surveys (clothing, entertainment electronics, etc.) New survey framework for the rental price collection (1 st semester of 2016). - - Implementation of ECOICOP in the HBS. Re-basing of CPI and review of the sample, especially Telecom services.

10 Macedonia - new product : , , , , , , , , , , , , , , , , , , , , , , , , , , , , and