A revised Consumer Price Index in 2016

Transcription

1 Paper A revised Consumer Price Index in 2016 Jan Walschots February 2016 CBS 2014 Working Paper 1

2 Contents 1. Introduction 3 2. Recommendations on the use of CPI series for indexation purposes 3 3. Motivation for the changes 4 4. The 2016 revisions Reference year 2015= Introduction of ECOICOP Publication in practice Insurance services Institutional population 9 5. Differences between CPI and HICP Target population Coverage Price definition Classification Revision strategy Contributions to and impacts on inflation Annex: Differences between the old CPI-classification and ECOICOP 14 CBS A revised Consumer Price Index in

3 1. Introduction In 2016 there will be some changes in the calculation and publication of the Consumer Price Index (CPI) and the European Harmonised Index of Consumer prices (HICP). Three things will change: The most visible change is a re-referencing of the CPI from 2006=100 to 2015=100. HICP will be re-referenced from 2005=100 to 2015=100, A new classification of goods and services at the lowest level is important for users of detailed index data. There are some changes in the CPI methods, in particular in the treatment of insurances and the treatment of consumption expenditures by institutional households. In chapter 2 we will describe which CPI results will be published each month from 2016 and which new figures on earlier years will become available. Results that were published earlier on the basis of 2006=100 will remain available, but will not be supplemented with new data. Also an advice is given on the use of the old and new series for indexation purposes. In chapter 3 we describe the considerations for the methodological changes. An important aspect is the wish to correspond with international definitions and methods of the HICP. Some of the differences between CPI and HICP have disappeared in We will also indicate why the CPI will not yet be fully made in line with the international definitions. In chapter 4 the methodological changes will be further elaborated and explained. After that in chapter 5 the remaining differences between CPI and HICP will be summarized. In chapter 6 some new publication tables on contributions to inflation and impacts on inflation will be explained. In an annex the old and new classifications of goods and services in the CPI will be compared. 2. Recommendations on the use of CPI series for indexation purposes CPI data are often used for the purpose of indexation of contracts or adjustments of tariffs. In this chapter CBS gives recommendations on the use of the different available index series. The new CPI series on the basis 2015=100 is available from February The previous series 2006=100 will be stopped as of the reporting month December 2015, but the results will remain available to users. CBS A revised Consumer Price Index in

4 In some cases the 2015=100 series may give results on index development that differ from the results that were published earlier on the basis of 2006=100. If regulations or contracts indicate that tariffs or prices be indexed using the consumer price index, CBS recommends using the CPI-series and not the HICP, unless the use of the European harmonised HICP was mentioned explicitly in the regulation or contract. When a choice must be made on the use of the new or the old series CBS recommends the following: If a contract must be adjusted on the basis of CPI developments over a period ending in the year 2015 or earlier, the use of price developments as calculated in the 2006=100 series is recommended. If a contract must be adjusted on the basis of CPI developments over a period ending in the January 2016 or later, the use of price developments as calculated in the 2015=100 series is recommended. Example: A contract is adjusted on the basis of price developments according to the CPI between October 2014 and October You are recommended to use the result from the 2006=100 series. A contract is adjusted on the basis of price developments according to the CPI between the years 2014 and You are recommended to use the result from the 2006=100 series. A contract is adjusted on the basis of price developments according to the CPI between May 2015 and May You are recommended to use the result from the 2015=100 series. A contract is adjusted on the basis of price developments according to the CPI between May 2013 and May You are recommended to use the result from the 2015=100 series. 3. Motivation for the changes The methods used in the 2015=100 series are slightly different from those used in the 2006=100 series. These differences will be discussed in chapter 4. The desire to meet international definitions and methods and some changes in the HICP are the main motivations to introduce these changes in the CPI. The CPI measures the price development of private households expenditures. The CPI is an important and most frequently used measure of inflation in the Netherlands. It has many uses, like for making social policies, for monetary policies, for the calculation of purchasing power developments and for the indexation of contracts and tariffs. The CPI makes use of national definitions. Next to the CPI the HICP is produced since The HICP is made according to European regulations and using harmonised definitions in all CBS A revised Consumer Price Index in

5 member states of the European Union. For the European Central Bank (ECB) the HICP is the core measure of inflation in the Economic and Monetary Union (EMU). In the years since 1996 the HICP developed steadily, both with respect to the harmonization of used methods and with respect to output. New developments for the HICP usually are also applied in the CPI. A major difference until now is that the HICP is produced at a less detailed level than the CPI. This will change with the introduction of a more detailed classification of goods and services for household consumption in the HICP (ECOICOP). ECOICOP will be introduced in the HICP of the member states and for European total HICP in the course of 2016 and The Netherlands introduces ECOICOP with the publication of the January 2016 HICP results. At the time of introduction of ECOICOP in the HICP, more or less the same classification will be introduced in the national CPI. This will increase the level of detail for the CPI, it will give better international comparability and it enhances the efficiency of the production process. Some differences will remain because the coverage of CPI and HICP are different. We refer to section 5.4. In general CBS policy is to use international definitions and methodology also for national statistics. CBS will deviate only from international definitions if there are good reasons to do so. CBS has considered the possibility to bring the CPI fully into line with the HICP, but decided not to do so in The main reason is that the treatment of owner occupied housing in the HICP is still under international discussion. Until now no generally accepted method was determined for inclusion of the price of living in the households own house in the HICP, and therefore this part of consumption was excluded from the coverage of the HICP. Owner occupied housing is included in the national CPI using a rental equivalence method. By now Eurostat and the member states have developed a separate index for the price of owner occupied housing. First results were sent to Eurostat and these are now being analysed. In 2018 at the latest Eurostat will report on the usefulness of this index for the HICP. CBS expects that after then a final decision will be taken on whether to include owner occupied housing in the HICP. Awaiting this decision CBS has investigated which of the actual differences between CPI and HICP may disappear already by The choices will be elaborated in the next chapter. 4. The 2016 revisions In 2016 the following revisions will be performed in the HICP and CPI: The reference years 2005=100 for the HICP and 2006=100 for the CPI will be set at 2015=100, The classification of consumption expenditures COICOP-HICP will be replaced by the more detailed ECOICOP, The actual classification of consumer expenditures in the CPI will be replaced by a new one, which equals ECOICOP to the extent possible, The treatment of insurance services in CPI will be made equal to the HICP treatment, Private expenditures by members of institutional households will be included in the coverage of the CPI. They are already covered by the HICP. In the next sections these revisions will be elaborated. CBS A revised Consumer Price Index in

6 4.1 Reference year 2015=100 The reference year for all indices will be set at 2015=100 and all index series will be rescaled to 2015=100. This is a matter of calculus: the outcomes of all existing series will be multiplied by 100 and divided by the average index value in The other revisions, especially the introduction of ECOICOP may lead to a number of practical complications. Outcomes for years before 2015 will be recalculated using the new classification as far as possible to make long time series available. In the past the index reference year usually equalled the year for which the consumption basket and weights had been determined. Starting from 2006 the consumption basket and weights are determined annually in the basis of estimated consumption levels in the preceding year. Using a chaining mechanism short series covering 13 months are linked together in order to construct long series. The index reference year indicates the year for which the index equals 100. This means that price indices in 2014 are based on the estimated consumption basket in 2013, but prices are compared with a price level in the year 2006, which is set at 100. From 2016 onwards all index series will be compared with the 2015 average price levels. The most important aim of index numbers is to compare two index numbers in different periods and measure the price change in the intermediate period. As both index numbers have been rescaled by the same factor there should be no impact on monthly or annual inflation rates. As published index numbers are rounded at two decimal places there are cases where the rescaling leads to a small change of the calculated rates. However, official inflation figures concerning 2015 and earlier years are not revised. The official series is always based on the index series that is in use at the time of first publication concerning a certain reporting period. Inflation figures on 2015 and a number of earlier years will remain to be based on the 2006=100 series. At the introduction of ECOICOP both CPI and HICP will be re-referenced to 2015= Introduction of ECOICOP Consumer price index numbers are based all over the world on a classification of goods and services adopted by the United Nations: Classification of Individual Consumption by Purpose (COICOP-UN). COICOP-UN has a 4-digits level subdivision. Many countries have in the past created a further subdivision of COICOP-UN for national use. These national classifications are almost all different, and the more detailed results are therefore difficult to compare across countries. The HICP is classified according to COICOP-HICP. This is a version of COICOP-UN adjusted to the needs of the HICP and it also has four digits. The Dutch national CPI 2006=100 makes use of an adjusted and more detailed 5-digits classification, based on COICOP-UN. CBS A revised Consumer Price Index in

7 In 2016 ECOICOP will be introduced (European Classification of Individual Consumption by Purpose), which has a 5-digits subdivision. ECOICOP differs from COICOP-HICP only by the further 5th digit level of detail. At 4-digits level COICOP-HICP will not change. The new classification is presented and described on the CBS website. 1) ECOICOP will also be introduced as much as possible in the CPI. The 5th digit classification that is in use in the 2006=100 series will be terminated. Annex 1 contains an overview of the differences between the old 5th digit classification and the new ECOICOP as applied in the CPI. As the coverage of the CPI is slightly different from the coverage of the HICP differences remain between the HICP and CPI publications. The major differences are the inclusion of consumption related taxes and of consumption abroad. Consumption related taxes and Government services were included in the CPI under code The borderline between what is considered Consumption related taxes and what is considered Government services in the CPI will be brought in line with the distinction in the HICP. Government services are included in the HICP and classified according to COCIOP-HICP. Starting from the 2015=100 series Government services will be coded in the CPI according to ECOICOP. It concerns the following services: Sewage collection will go to COICOP Refuse collection will go to COICOP Local government administrative fees will go to COICOP University and school fees will go to COICOP and respectively. Consumption related taxes are not covered by the HICP. They will continue to be represented in the CPI in a downsized group This concerns: Pollution tax Road tax Dog license fee Consumption abroad is within the coverage of CPI but not of HICP. It is included under code , like it was in the 2006=100 series. 4.3 Publication in practice At the start of the 2015=100 series CPI results using the new methods are published from the reporting month January Also back data were calculated for the years using the new ECOICOP classification. When making the back data calculations for earlier years than 2015, the other methodological changes cannot be taken into account. The HICP was re-referenced to 2015=100. HICP results for the Netherlands according to ECOICOP are from now on available on the CBS-website. HICP results according to ECOICOP for other EU-member states and for the EMU and EU totals will be published in the near future by the member states and by Eurostat. 1) Also see: 5&StrLanguageCode=EN&StrLayoutCode=HIERARCHIC CBS A revised Consumer Price Index in

8 Dutch HICP 2015=100 results for the first time contain results for Heat energy (ECOICOP ). Expenditures on heat energy were until now represented in the weight for Gas (ECOICOP ). Also for the first time separate indices are published for ECOICOP (Accessories for photographic and cinematographic equipment) and for ECOICOP (Maintenance and repair of other major durables for recreation and culture). In practice not all (sub)groups indices of ECOICOP will be calculated and published. A (sub)group will not be published if the expenditures in the Netherlands are very low and therefore weight would be low. An ECOICOP (sub)group also will neither be published if the expenditures are outside the scope of the index (e.g. expenditures on hospital care are almost fully covered by the basic health insurance). 4.4 Insurance services Until now the treatment of insurance services in the CPI differs from the treatment in the HICP. In the 2006=100 CPI series the full insurance premium is considered to be consumption expenditures and included in COICOP If the consumer suffers a loss that is covered by an insurance policy, then goods and services in kind that the insurance company provides are not considered to be part of household consumption expenditures. Also if the insurance company compensates the consumer in cash and the consumer buys a replacement good, these expenditures are not covered by the CPI. The level of the insurance premiums determines the weights and the development of the premium levels determines the index. In the HICP another approach is being used. The insurance premiums paid by consumers are partially given back to consumers as compensation in cash or in kind if the consumer suffers a loss. If the consumer suffers a loss that is covered by insurance, then the goods and services that the insurance company provides in kind is considered to be monetary expenditures by consumers. Also if the insurance company pays for damages in cash and the consumer buys a replacement product, then these expenditures are included in household final monetary consumption expenditures in the HICP. Part of the insurance premiums does not flow back to the consumers, but serves the payment of the operating costs of the insurance company. This part of the insurance premium is considered to be the service part of the premium. In the HICP the weight for insurance services is determined by the balance between premiums paid and damages received. As there is no separate price for the insurance service part the index is based on the development of gross insurance premiums. Example: The treatment of insured car damages Suppose that: Consumers pay an amount of 100 million euros for car damage insurance premiums. Insurance companies pay 60 million euros to car repair companies or directly to consumers because of car damages, and The insurance companies spend the remaining 40 million euros for its own operation: personnel, office costs and etcetera. CBS A revised Consumer Price Index in

9 Then in the CPI 2006=100 series: The weight for insurance services is based on 100 million euros The weight for car repairs does not incorporate the spending of 60 million euros that is paid directly by the insurance company or through the consumer for car repairs. Then in the CPI 2015 = 100 series and in the HICP: The weight for insurance services is based on 40 million euros The weight for car repairs increases due to the 60 million euros paid on car repairs by the insurance companies. Starting from the 2015=100 series in the CPI the same method will be used as in the HICP. In practice this will lead to lower weights in the CPI for insurance services and higher weights for goods and services that are frequently covered by insurance, like car repairs or medical care that is covered by private additional insurance policies. Social insurances, such as legal insurance against unemployment and labour disability, and the base insurance for health care, are not included in the coverage of the CPI and HICP. Premiums for social insurance are considered a negative income part when determining disposable income, but are not considered consumption. Also financial insurances, like life insurance are covered neither in CPI nor in HICP. This was already the case in the old series and it will remain unchanged after Institutional population The Dutch population living in institutional households is not included in the data collection of part of the CBS statistics. In the Household budget survey (HBS) and in Income statistics this part of the Dutch population is excluded. As the weighting scheme of the CPI was based on the HBS until the year 2000 and because the CPI aims to link with Income statistics for the sake of the calculation of purchasing power developments the CPI was also based on the consumption of the population excluding the institutional population. HICP regulations say that the European index concerns the consumption expenditures of all population. Therefore from 1996 an estimate was made of the consumption of the institutional population. This estimate was added to the HBS results to get a figure for the total population consumption level in the Netherlands. As of the start of the 2000=100 series the starting point for the calculation of the weights of the CPI shifted from the HBS to the household consumption according to National Accounts. In National Accounts consumption is estimated for the full population. From that year on the estimate of the consumption of the institutional population was deducted from the outcome of National Accounts consumption in order to keep the best link with Income statistics. Starting from the 2015=100 series this estimate and deduction will partially be stopped. Social protection that is provided to the institutional population by government through social insurance or social securities is not part of the coverage of the HICP. It is only the own contributions that people living in the institutions have to pay, that are included in the HICP. The own contributions provide for the housing, food, care and etcetera that people living in the institutions receive. These own contributions may constitute a very large part of consumption expenditures of this population group. CBS A revised Consumer Price Index in

10 The HICP includes all consumption expenditures of people living in institutional households. The own contributions are included in COICOP group Social protection. The rest of their consumption is included in the other relevant COICOP groups. In the CPI series as of the 2015=100 own contributions will remain out of scope, but consumption in all other COICOP groups by the institutional population will be included in the CPI coverage. The separate estimate of this part of consumption is no longer needed. This methodological change will have hardly any impact on headline CPI results. Own contributions of people living in institutional households will not yet be included in the CPI 2015=100 series. This may happen in the future through a new methods revision, if it is then decided to fully follow the international HICP definitions. Meanwhile CBS will further investigate the problems of the link with income statistics and the calculation of purchasing power developments. 5. Differences between CPI and HICP CPI and HICP are different in certain aspects. This chapter will in short summarize the differences. They can be subdivided into four themes: Target population; which consumers and which transactions are included in the index, Coverage; which consumption expenditures are included, Price definition; how are some prices defined, Classification 5.1 Target population This theme covers two subjects: The CPI uses a national concept, whereas the HICP uses a domestic concept, Consumption by institutional households The national concept of the CPI implies that all expenditures of consumers living in the Netherlands are included, regardless of whether these expenditures are in the Netherlands or abroad. The domestic concept of the HICP implies that expenditures abroad of consumers living in the Netherlands are excluded from the HICP, but that expenditures of foreign visitors on Dutch territory are included. Expenditures by people living in institutional households are included in the HICP. In the 2006=100 series these expenditures are excluded from the CPI. Starting from the 2015=100 series expenditures by people living in institutional households are included excluding the own contributions that these people pay for living in the institution (see section 4.5). CBS A revised Consumer Price Index in

11 5.2 Coverage Three groups of goods and services are included in the CPI but excluded from the HICP: Imputed rentals for housing Contributions Consumption related taxes For households renting a house, the rents payments are included in CPI and HICP. For households living in a house of their own imputed rentals for housing is included in the CPI 2) and the developments of imputed rentals contribute to the CPI results. Owner occupied housing expenditures are excluded from the HICP. The HICP does not consider subscriptions or contributions for recreational and sports clubs, labour unions and other NPISHs to be consumption expenditures but to be transfers. Also taxes are out of the scope of the HICP. Government services are included (see section 4.2). On the other hand, own contributions paid for living in an institutional household are included in the HICP, but excluded from the CPI (see section 4.5) 5.3 Price definition For some product categories price definitions in HICP and CPI differ. The differences between the treatments of insurance services were described in section 4.4 and these will disappear from the start of the 2015=100 series. There are also differences in the treatment of parents contributions for child care. In the CPI the gross price for child care is observed. As a consequence the weight for child care is high. In the HICP only the parents own contributions are included. Contributions that the Government pays to the parents are deducted from the gross price. Therefore also the weights for child care are lower. Finally changes in own contributions for health care that is covered in the base health insurance are treated differently. If a certain element of health care is taken out of the coverage of the base policy and the consumer has to pay for that care himself, this is reflected in the CPI only by an increase of the weight for health care. Likewise a change whereby previously uninsured health care is taken up in the base policy also does not lead to a decrease of the CPI. In the HICP changes in the basic insurance policy are treated as price changes. A change whereby insured health care from a certain point in time is no longer covered by basic health insurance and for which the consumer must pay an own contribution is treated as a price increase from zero to the new own contribution or market price. Alternatively a change whereby a part of health care that was not insured is brought under the coverage of the basic health insurance is treated in the HICP as a price decrease from the existing price or own contribution to zero. 2) The method is described in document: EC9/0/2013HuurwaardeCPI.pdf (only available in Dutch) CBS A revised Consumer Price Index in

12 5.4 Classification In the 2006=100 series there were several differences between the COICOP classifications that were used in CPI and in HICP. From the 2015=100 series the classification are set equal to the extent possible. See also section 4.2. Remaining differences all have to do with product groups that are out of the scope of one of the two series. Included in the CPI, but not included in the HICP are: COICOP Imputed rentals for housing, COICOP Consumption related taxes, COICOP Consumption abroad. Included in the HICP, but not in the CPI are: COICOP Retirement homes for elderly persons and residences for disabled persons. 5.5 Revision strategy CPI and HICP results are published shortly after the reporting month. Sometimes results must be revised on the basis of new information becoming available. In these cases revised figures will be labelled as final or revised. For more information on this subject we refer to: (only available in Dutch). Sometimes if statistical methods are changed, results before and after the methodological change are not fully comparable. Particularly if the seasonal patterns of some of the outcomes are changing this may have significant consequences. In the HICP methodological changes are generally introduced by December of a certain year, and price developments between December and January are the first to be calculated using the new method. The calculation of the year-on-year change of the indices is based on two methods during a 12 months period. Occasionally a member state may choose to recalculate the outcomes in the latest year using the new method and to revise the HICP series of 12 months. New inflation figures in future months will then be calculated on the basis of index numbers that were all calculated using the same method. However the revised index numbers of the past year are no longer fully comparable with index numbers of two years ago. If this is the case in the CPI a different method is used. For (at least) one year two index series will remain available that allow the calculation of annual rates on the basis of index numbers that were always compiled using identical methodology. More specifically this means that the 2006=100 CPI series will remain available with 2015 results that are fully comparable with In the 2015=100 series results for 2015 were recalculated using the new methodology that is also used for More information on this subject can be found in: Observationcpiairlineticketsrev.pdf CBS A revised Consumer Price Index in

13 6. Contributions to and impacts on inflation As of 2016 CBS will publish a new table in the StatLine database presenting the contribution of product groups to inflation and impacts on inflation. In this chapter we will shortly describe what these figures represent. The CPI measures the average price development of all goods and services that consumers buy. Each product group has some influence on the overall outcome. Product groups with a large weight have bigger influence than those with a small weight. An article group s influence on average price developments can be looked at in two ways: The price development of each product group contributes to the fact that the expenditure on the total consumption basket changes. The article group s expenditure change contributes to the total expenditure change. This is represented by the contribution, Article groups that have a price increase above average inflation push the average a bit up, while articles with a below average price increase pull the average down. These accelerating and decelerating influences of an article group are called the impacts. The contributions of all product groups together measure the price increase of the total consumption basket. In other words, all product groups contributions add up to headline inflation. In this case each product group with prices going up has a positive contribution and each product group that becomes cheaper has a negative contribution to inflation. The contribution of a product group to inflation depends on its price change and its weight, but does not depend on the price development of other product groups. Contributions were already calculated in the 2006=100 CPI series. The impact of a product group on inflation is determined by calculating what inflation would be if the product group were fully removed from the inflation calculation. This result is deducted from headline inflation to determine the impact. The impacts of all product groups do not add up to some interpretable figure, but since there are always positive and negative impacts, the sum will be close to zero. The impact of a product group depends on its weight and on the price development of the article group, but also on the price developments of all other groups. Eurostat has calculated impacts for years, and uses them in the HICP news releases. The calculus to determine contributions and impacts is described in a methodological article. 3) 3) contribution-and-impact.htm CBS A revised Consumer Price Index in

14 7. Annex: Differences between the old CPI-classification and ECOICOP A full description of the new ECOICOP-classification can be found in the report ECOICOP indeling CPI/HICP. For the HICP ECOICOP is no more than a further subdivision at 5-digit level of the COICOP- HICP classification used so far. At the level of divisions (2-digits), groups (3-digits) and classes (4-digits) existing series will be continued. For the CPI ECOICOP will replace at the lowest level a 5-digits classification that was used for the national CPI only. It was a bit less detailed than ECOICOP. Furthermore in the CPI Government services are no longer classified in COICOP Division , but they are classified in the same classes as in the HICP. Consumption related taxes and consumption abroad are classified in CPI in divisions and like in the past. In this annex the differences between the old and new classifications are presented at the most detailed level. The following table shows how the most detailed classification of goods and service that was used in CPI 2006=100 compares to the new ECOICOP classification in the 2015=100 series. The left hand columns are ordered according to the old classification, the right hand columns are ordered according to ECOICOP. B.1 Comparison of the CPI classification from the 2006=100 series and the classification from the 2015=100 series, based on ECOICOP Classification used in CPI 2006=100 HOW TO READ THE TABLE Food and non-alcoholic beverages ECOICOP Divisions ECOICOP CPI classification 2006=100 ECOICOP ECOICOP name Admission fees amusement parks Charges by banks and post offices All articles of the old group were transferred to ECOICOP All articles in ECOICOP group were transferred from the old group Tuition fees Articles of the old group were transferred to two ECOICOP groups and Restaurants, cafés and dancing Articles in ECOICOP group were transferred from two old groups and The equal (=) sign = Road tax = Road tax The old group and the new ECOICOP group are identical, but they may have a different coding CBS A revised Consumer Price Index in

15 B.1 Comparison of the CPI classification from the 2006=100 series and the classification from the 2015=100 series, based on ECOICOP (continued) Classification used in CPI 2006=100 ECOICOP CPI classification 2006=100 ECOICOP ECOICOP name The arrow up and arrow down and Petrol Diesel Diesel Petrol Attention: coding for Petrol and Diesel have interchanged Levies on refuse collection (Part of) the products from old group were transferred to a different ECOICOP division (044200) Administrative fees (Part of) ECOICOP group was transferred from a different COICOP division in the old classification (132100) Food and non-alcoholic beverages Food and non-alcoholic beverages Rice = Rice Wheat flour = Flours and other cereals Bread and rusks Bread Other bakery products (Salt) biscuits, pastry Pizza and quiche Pasta = Pasta products and couscous Instant (breakfast) cereals = Breakfast cereals Other cereal products Beef = Beef and veal Pork = Pork Lamb and goat Poultry = Poultry Meat products and meat dishes Other meats Other meat Dried, salted or smoked meat Other meat preparations Fresh and frozen fish = Fresh or chilled fish Crustaceans and shellfish = Fresh or chilled seafood Non-perishable fish Dried, smoked or salted fish Preserved or processed fish Milk Milk, whole, fresh Milk, low fat, fresh Milk, preserved Yoghurt, cream, desserts, etc, Yoghurt Cheese = Cheese and curd Other milk products Eggs = Eggs Butter = Butter Margarine, etc = Margarine and vegetable fats Edible oils Olive oil Other edible oils Fresh fruit = Fresh or chilled fruit Dried fruit and nuts = Dried fruit and nuts Fruit in syrup and fruit puree = Preserved fruit-(based) products Fresh vegetables = Fresh or chilled vegetables Frozen and other vegetables Frozen vegetables Dried vegetables. CBS A revised Consumer Price Index in

16 B.1 Comparison of the CPI classification from the 2006=100 series and the classification from the 2015=100 series, based on ECOICOP (continued) Classification used in CPI 2006=100 ECOICOP CPI classification 2006=100 ECOICOP ECOICOP name Potatoes Potatoes Potato products Crisps Sugar Sugar Sweet fillings = Jams, marmalades and honey Chocolate = Chocolate Sweets = Confectionery products Ice cream = Edible ices and ice cream Artificial sugar substitutes Spices, etc Sauces, condiments Sauces, mayonnaise, etc Salt, spices and culinary herbs Soups and broth Baby food Instant food, frozen food Ready-made meals Salads, etc Other food products n.e.c Other food Coffee and cacao Coffee Tea = Tea Cocoa and powdered chocolate Mineral waters = Mineral or spring waters Soft drinks = Soft drinks Fruit juices, vegetable juices Fruit and vegetable juices Syrups Alcoholic beverages and tobacco Alcoholic beverages and tobacco Spirits = Spirits and liqueurs Wine Wine from grapes Fortified wines Beer Lager beer Other alcoholic beer Low and non-alcoholic beer Cigarettes = Cigarettes Rolling tobacco Cigars Cigars, pipe tobacco, etc Other tobacco products Clothing and footwear Clothing and footwear Men's wear = Garments for men Ladies' wear = Garments for women Children's wear Garments for infants and children Baby clothes Other clothing and accessories = Other articles of clothing Cleaning, repair, hire of clothing = Cleaning of clothing Men's footwear Footwear for men Ladies' footwear = Footwear for women Sports shoes for adults Children's and baby shoes = Footwear for infants and children CBS A revised Consumer Price Index in

17 B.1 Comparison of the CPI classification from the 2006=100 series and the classification from the 2015=100 series, based on ECOICOP (continued) Classification used in CPI 2006=100 ECOICOP CPI classification 2006=100 ECOICOP ECOICOP name Housing, water, electricity, gas Housing, water, electricity, gas Housing rent = Actual rentals paid by tenants Garage rent = Garage rentals and other rentals Imputed rent value = Imputed rentals owner-occupiers Products maint./ repair dwellings Products maint./ repair dwellings Services maint./repair dwellings = Services of painters Water supply = Water supply Refuse collection Refuse collection Sewage collection Services rel. to dwellings n.e.c = Maint. charges multi-occ. build Transport of electricity = Transport of electricity Supply of electricity = Supply of electricity Specific taxes on electricity = Specific taxes on electricity Transport of gas = Transport of gas Supply of gas = Supply of gas Specific taxes on gas = Specific taxes on gas Not included in the old series Heat energy Furnishing, household equipment Furnishing, household equipment Furniture Household furniture Garden furniture Lighting, home decoration Lighting equipment Other furniture and furnishings Carpets and other floor coverings Carpets and rugs Other floor coverings Curtains, blinds, screens, etc = Furnishing fabrics and curtains Bed clothes = Bed linen Household linen = Table linen and bathroom linen Refrigerators and freezers = Refrigerators, (fridge-) freezers Dishwashers, washing mach.,etc = (Dish-)wash- and drying machines Gas cookers, (microwave)ovens,etc = Cookers (Water) heaters, geysers etc = Heaters, air conditioners Sewing mach. vacuum cleaners, etc = Cleaning equipment Small household appliances Food processing appliances Coffee machines, tea makers etc Irons Repair of household appliances = Repair of household appliances Glassware, pottery, household art Glassware, crystal-ware Cutlery, flatware and silverware Non-electric kitchen utensils Tools and eq. for house and garden Motorized major tools Non-motorized small tools Accessories for small tools Detergents, fabric softeners Cleaning and maintenance products Dishwasher detergents Other cleaning products, etc Other non-durable articles Non-durable small house. articles Household services = Other domestic services. CBS A revised Consumer Price Index in

18 B.1 Comparison of the CPI classification from the 2006=100 series and the classification from the 2015=100 series, based on ECOICOP (continued) Classification used in CPI 2006=100 ECOICOP CPI classification 2006=100 ECOICOP ECOICOP name Health Health Pharmaceutical products = Pharmaceutical products Other medical products, equipment Pregnancy tests and contraceptive Other medical products n.e.c Corrective eye-glasses and lenses Hearing aids Medical and paramedical services Specialist practice Dental services = Dental services Other paramedical services Transport Transport New cars = New motor cars Second-hand cars = Second-hand motor cars Motorcycles, scooters, mopeds Motor cycles Bicycles Bicycles Spare parts and accessories cars Tyres Spare parts personal transport Spare parts/access.mot.cyc./mopeds Accessories for pers. transport Petrol Diesel Diesel Petrol LP gas = LPG Maint. and repair priv. transport = Maint. and rep. pers. transport Rent means of transport = Hire of garages, pers. transport Parking fees, toll = Toll facilities and parking meter Driving lessons, etc Driving lessons, tests, licence Motor vehicle inspections Passenger transport by railway Passenger transport by train Passenger transport by tram Passenger transport by road Passenger transport by bus Passenger transport by taxi Passenger transport by air = International flights Passenger transport by waterway Passenger transport by sea Pas. transport by inland waterway Other purchased transport services = Removal and storage services Communication Communication Postal services Letter handling services Other postal services Telephone equipment = Mobile telephone equipment Telephone and internet services Wired telephone services Wireless telephone services Internet access provision Bundled telecom services CBS A revised Consumer Price Index in

19 B.1 Comparison of the CPI classification from the 2006=100 series and the classification from the 2015=100 series, based on ECOICOP (continued) Classification used in CPI 2006=100 ECOICOP CPI classification 2006=100 ECOICOP ECOICOP name Recreation and culture Recreation and culture Audio equipment Audio equipment Television sets, video equipment = Television sets, video equipment Portable sound and vision devices Headsets, e-readers etc Photo, film, optical equipment Cameras Not included in the old series Accessories for photo and film Information processing equipment Personal computers Accessories for computers Software CDs Pre-recorded recording media Videotapes, DVDs pre-recorded Photography and film = Other recording media Repair of equipment = Repair of audio-visual equipm Articles for outdoor recreation Camper vans, caravans and trailer Boats, outboard motors and Articles for indoor recreation = Musical instruments Maint. and rep. of major durables Games, toys and hobbies Games and hobbies Toys and celebration articles Equipment for sport Equipm. for sport and camping site Equipment for camping and open Gardens, plants and flowers, etc Garden products Plants and flowers Pets and related products = Products for pets Veterinary and other serv for pets = Veterinary and services for pets Membership sports clubs Attendance of recr. and sport Membership recreation clubs Music, dance, sports lessons Participation of recr. and sport Admission fees stadiums, etc Admission fees amusement parks Rent sports accommodations Membership sports clubs and Other serv. recreation and sports Adm. fees cinema, theatre, etc = Cinemas, theatres, concerts Museums, zoos Museums, libraries, zoos Hire of equipment for culture Subsc. cable TV/radio system Television and radio licence fees Services photography and film = Photographic services Books Fiction books Educational text books Other non-fiction books Newspapers and magazines Newspapers Magazines and periodicals Other printed matter, stationery Miscellaneous printed matter Paper products Other stationery and drawing Holidays abroad = Package international holidays CBS A revised Consumer Price Index in

20 B.1 Comparison of the CPI classification from the 2006=100 series and the classification from the 2015=100 series, based on ECOICOP (continued) Classification used in CPI 2006=100 ECOICOP CPI classification 2006=100 ECOICOP ECOICOP name Education Education Education Secondary education Tertiary education Education not definable by level Hotels and restaurants Hotels and restaurants Restaurants Restaurants, cafés and dancing Fast food and take away services = Fast food and take away food Cafes, pubs Canteens = Canteens Accommodations Hotels, motels, inns etc Holiday centres, camping sites Miscellaneous goods and services Miscellaneous goods and services Men's and children's hairdressers = Hairdressing for men and children Ladies' hairdressers = Hairdressing for women Saunas, beauty parlours, etc = Personal grooming treatments Electric appliances for pers. care = Electric appliance for pers. care Toilet articles Non-electrical appliances Articles for personal hygiene Beauty prod./perfumes/deodorants Other articles for personal care Jewellery, clocks and watches Jewellery Clocks and watches Other articles for personal use Travel goods Other personal effects n.e.c Social protection Child care services Services to maintain people in Insurances conc. the dwelling = Insurance conn. with the dwelling Insurance connected with health = Private health insurance Car insurances Motor vehicle insurance Bicycle,mot.cyc.,motorscooter ins Other insurances conc. transport Travel insurance Other insurances = Other insurance Financial intermediation Charges by banks and post offices Fees of brokers, investment Other services n.e.c Administrative fees Legal services and accountancy Funeral services Other fees and services Consumption related taxes and gov. serv Consumption related taxes Sewerage charges Levies on refuse collection Pollution tax = Pollution tax CBS A revised Consumer Price Index in