The HICP reflects changes in the prices of consumer goods and services in a specified period of time.

The Harmonised Index of Consumer Prices (HICP) is used for comparing changes in consumer price levels in European Union (EU) Member States and for measuring the stability of prices in the euro area.

Definitions

The HICP reflects changes in the prices of consumer goods and services in a specified period of time. The HICP measures changes of the average level of prices of goods and services that households consume (the fixed consumer basket). The HICP is used for comparing changes in consumer price levels in the EU Member States and for measuring the stability of prices in the euro area.

The HICP reference period is the year 2015, expressed by 100 index points (2015 = 100).

The HICP is pure price index. It does not reflect the changes in consumption patterns, brands, and does not reflect the effect of outlet and service provider substitution.

The constant tax rate index (HICP-CT) is satellite index of harmonized index of consumer prices from which the influence of indirect taxes on consumer prices is excluded. When calculating the HICP-CT, the tax rates remain constant over time. Therefore, if tax rates on products are being changed, the HICP and HICP-CT show different values. Difference of these values characterizes theoretically possible influence of tax changes on the price index. For example, if HICP in January 2011 in comparison to December 2010 increased by 1.3 %, but HICP-CT remained unchanged, the difference (1.3 percentage points) characterizes the tax rise impact on the total HICP, assuming that tax changes in consumer prices in January are reflected in full immediately.

In practice, the real tax impact can differ from the theoretical, and it may not be reflected in one month, but spread over several months.

At the moment, HICP-CT includes excise duty and value added tax, as well as passenger car registration tax.

Dissemination Format and Release Calendar

Advance Release Calendar

Theme Reference period Planned release datesort icon Remarks
Harmonized Consumer Price Index
  • December 2017
10.01.2018
Harmonized Consumer Price Index
  • January 2018
12.02.2018
Harmonized Consumer Price Index
  • February 2018
08.03.2018
Harmonized Consumer Price Index
  • March 2018
13.04.2018
Harmonized Consumer Price Index
  • April 2018
14.05.2018

Theme Reference period Actual release datesort icon Remarks
Harmonized Consumer Price Index
  • November 2017
12.12.2017
Harmonized Consumer Price Index
  • October 2017
13.11.2017
Harmonized Consumer Price Index
  • September 2017
12.10.2017
Harmonized Consumer Price Index
  • August 2017
12.09.2017
Harmonized Consumer Price Index
  • July 2017
11.08.2017

Classifications

All goods and services of the HICP basket are grouped according to the European Classification of Individual Consumption by Purpose (ECOICOP). The data are published at the 2-digit level of the ECOICOP.

A Classification Catalogue with classification codes and their explanations has been published on the CSB website.

Customised Datasets

If you would like to obtain statistical data that are not available in publications or in the CSB online data base, please send us an information request:
 - postal mail: 1 Lāčplēša Street, Riga, Latvia, LV-1301;
 - e-mail: info [at] csb [dot] gov [dot] lv;
 - visiting Information centre.

Read more

Reference (certificate)

If you would like to obtain statistical data to deal with legal formalities (references or certificates for agreements, public procurement, court procedures etc.): Chargeable services/Reference (certificates).

Data Collection

Survey Method and Source Data

The sample survey of consumer prices.

The prices of all goods and services, except for the prices of fuels for transport, are recorded every month from 4th to 20th date. Fuels for transport prices are registered from 1st to 25th date. Qualitative goods with price discounts offered to all consumers are also taken into account in price collection. The prices of goods enter into the HICP of the month in which they were registered, whereas the prices of services enter into the HICP of the month in which the consumption of the service at the observed prices can commence.

To ensure adequate representation of goods and services, which require larger share of household expenditure, in the overall HICP, the weights representing the proportion of expenditure on each individual commodity to the total household expenditure are computed.

The weights are updated every year.

The weights used for index calculation are annual average weights derived mainly from the National Accounts and Household Budget Survey (HBS). The HBS collects data from a 2-stage stratified sample that consists of approximately 4 000 households. Additional sources used to calculate the weights include administrative data, branch statistics data, as well as information provided by enterprises and retailers. The weights reference period is the year T-2. The weights are updated annually and price-updated to December T-1.

The outlets, from which prices are collected, are chosen to represent the existing trade and services network and usually they are based on the three main criteria: popularity among consumers, significant turnover from consumer sales and availability of goods and services. The sample of price recording places is regularly updated. If a shop is closed down or liquidated, it is replaced by another shop of an equal significance. The sample also includes open markets and internet shops.

Statistical Population

Population Coverage

The HICP covers the whole resident population of the country including persons living in institutional households (social care institutions, children’s homes, prisons, etc.). The expenditure of non-resident travellers in Latvia is included in the HICP as well.

Geographical Coverage

The consumer price survey is conducted in Riga and 10 other towns. Using population weights survey data are generalized to the whole country – both urban and rural territories.

Item Coverage

The HICP covers the prices paid for goods and services in monetary transactions. The HICP excludes illegal goods and services, gifts, expenditure on the owner-occupied housing, expenditure on the lotteries and gambling as well as interest and credit charges.

Sample size

In 2017, the HICP "basket" contains 515 goods and services the prices of which are recorded regularly. Approximately 2-thousand various trade and services outlets are surveyed. In total, about 20 thousand prices are observed each month.

Average number of prices/ goods and services in consumption groups observed during a month:

  Prices

Goods and services

01 Food and non-alcoholic beverages 6 270 127
02 Alcoholic beverages and tobacco 590 13
03 Clothing and footwear 2 090 65
04 Housing, water, electricity, gas and other fuels 1 490 30
05 Furnishings, household goods and cleaning 1 840 54
06 Health 1 370 34
07 Transport 1 860 47
08 Communication 420 13
09 Recreation and culture 1 760 56
10 Education 180 9
11 Restaurants and hotels 630 16
12 Miscellaneous goods and services 1 690 51

Specifications for goods and services under observation are kept unchanged during the whole year.

Statistical Processing

Calculation Method

At first, the average price of products and services collected in localities is calculated. It is calculated as simple arithmetic mean of the prices of goods and services surveyed. From all the average prices collected in localities, the average price for the whole country of each product and service is calculated using population weights.
Afterwards, the price index of each good and service (lower-level price index) is calculated. Price indices of lower aggregation levels are calculated as the ratio of arithmetic mean prices in the comparison and reference periods.
For the calculation of higher level (consumer group) price indices and the overall HICP a Laspeyres-type formula that expresses the weighted arithmetic mean value of the lower-level price indices is used:
 

, where

 the overall Consumer Price Index in the period T compared to period 0 (the reference period);

 the share of the product j in the consumer basket in the reference period;

 the price index of the product j in the period T, compared to the period 0 (the reference period).

The reference period of prices is December of pervious year. To calculate the price changes in longer time period price indices of each year are chained in one time series with the same reference period. In HICP calculations reference period is average value of 2015 (2015 = 100). If linking month is December, then price index in month m in year G is calculated as follows:

  the latest link in the chain (price index in the month of the reference year, compared to the December of the previous year);

 the link of the chain, which is calculated from historical data by moving from December as reference period to the average value of the year.

Reference Period

The reference period of prices is December of pervious year. The HICP reference period is the year 2015 expressed by 100 index points (2015 = 100).

Data Revision

The published data can be revised.

Comparability

Comparability over time

Comparable data are available starting from 1996.

International Comparability

Eurostat

The calculated price indices, price changes and weights, as well as methodology and other information is available under section: Statistics/ Economy and finance/ Harmonized Indices of Consumer Prices (HICP):

http://ec.europa.eu/eurostat

* The differences between the calculated national CPI, that published by National Statistical Offices and the HICP published by Eurostat are described in this document.

European Central Bank

http://www.ecb.europa.eu/stats/prices/hicp/html/index.en.html

Confidentiality

Confidentiality of the information provided by respondents is protected by the Section 17 of the Statistics Law stipulating rights and obligations of the Central Statistical Bureau of Latvia and other state authorities producing official statistics. Read more

Quality

In order to ensure methodological compliance and quality, Eurostat carries out HICP validation tests in the EU countries on a regular basis. In 2007 and 2013 Eurostat published reports on detailed evaluation of HICP in Latvia.

The last report, which was published in 2013, confirmed that Latvian HICP calculation methods comply with the set criteria, and the required level of HICP accuracy and reliability is ensured. The Latvian HICP data passes all the standard HICP validation tests – they are internally consistent and aggregate correctly. Latvian HICP is comparable with HICP of other European Union countries.

The reports are available on Eurostat homepage section about HICP compliance monitoring.

In November 2014, Eurostat on its website (under section Technical and Thematic News Releases) published a report on euro changeover impact on inflation in Latvia:

http://ec.europa.eu/eurostat/web/hicp/publications/technical-and-thematic-news-releases

Eurostat assessment of the situation in Latvia was similar to that in other countries that had joined the euro area before us.

Contact person on methodology

Name Surname Phone number Position Email
Nataļja Dubkova 67366644 daļas vadītājs Natalja.Dubkova@csb.gov.lv

Last update

10.02.2017

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Explanation of symbols

-

Magnitude zero

0

Less than half of the unit employed

...

Data not available or too uncertain for presentation

X

Figure not applicable because column heading and stub line make entry impossible, absurd or meaningless

.

Data not released for confidentiality reasons

If data are absolute numbers

0

Magnitude zero