Improving Harmonised Indices of Consumer Prices

ended

In November 2021, Eurostat reviewed the compilation of the harmonised index of consumer prices (HICP) for Finland. The review was done on the basis of the HICP regulation, established HICP recommendations, guidelines and good practices in the production of consumer price indices (CPI). The compliance monitoring report (published in February 2022) highlighted shortcomings in production of the HICP; the representativity of e-commerce and rent index, timing of replacements, selection of replacement products, inadequate assessment of quality changes, and expand the use of explicit quality adjustments methods. Concerning the representativity of the rent index Statistics Finland received a recommendation to further improve the representativity of the rent index as dwellings rented by private landlords to tenants without housing allowances are currently not covered. Moreover, Statistics Finland received a recommendation to carry out research into methods and sources with a view to expand the use of explicit quality adjustments methods. This project addresses these acknowledged necessities. The general aim of this project is to follow up on many of the recommendations given in the compliance monitoring report. The project falls under both activities specified in the call: new methodologies for the HICP and new data sources for the HICP. The project will consist of four work packages: • The WP1 includes the management and coordination activities of the project • The WP2 consists of the improvement of the representativity of the rent index • The WP3 aims to improve quality of price quotes by training price interviewers to collect prices from websites, by improving the replacement practices in the regional price collection and by improving the imputation of missing prices, • The WP4 aims to implement scanner data for electronic goods and home appliances into HICP production system using explicit quality adjustment and improved index calculation methods.