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The CPI and HICPThe CPI and HICPSome weighting issuesSome weighting issues

Tom Andersen Langer

Division for Price Statistics

Background

• Statistics Norway has produced price statistics on financial services since 1992.

• Covering services in stock brokerage, saving funds and other services paid directly by the consumer. The FISIM represents a new area in the CPI

• We are currently preparing a transition from using the HBS to National Account as the primary weight source.

– Indexes produced in accordance with conceptual frames

– And requirements laid down in EU-regulations and definitions

DS-071055-HICP - Item weights. Financial services n.e.c. excl. FISIM

geo/time 2009A00Flags and

Footnotes 2010A00Flags and

Footnotes

Poland 29,4 31,5

United Kingdom 28,0 28,0

Denmark 20,3 20,7

Sweden 20,9 19,1

Portugal 18,2 18,4

Switzerland 22,9 18,2

Iceland 18,4 15,6

Slovenia 14,4 13,7

Netherlands 12,9 13,3

Czech Republic 12,7 11,5

Luxembourg 11,3 10,8

Finland 8,7 9,3

Italy 9,3 9,1

Hungary 5,2 6,7

France 6,2 6,4

Slovakia 4,4 5,9

Germany (including ex-GDR from 1991) 5,6 5,6

Latvia 4,4 4,6

Austria 3,8 3,9

Malta 1,5 3,4

Belgium 2,5 2,5

Cyprus 2,0 2,0

Greece 1,8 2,0

Croatia 1,8 (i) 2,0 (i)

Estonia 1,3 1,5

Ireland 1,5 1,4

Norway 1,7 1,3

Lithuania 0,8 0,8

Spain 0,4 0,4

Bulgaria 0,2 0,3

Romania 0,1 0,1

Turkey 0,1 (i) 0,1 (i)

Conceptual issues

• The CPI based on the resident concept

– Comprises consumption by Norwegian habitants home and abroad– The consumption abroad (mainly tourism) is measured on

aggregate level only. Approx 6 per cent of total consumption.

• The HICP according to the domestic concept– Comprises consumption by Norwegian citizens home and

foreign citizens (mainly tourism) visiting Norway– Foreign citizens consumption data are available on detailed level.

Approx 3 per cent of total consumption

Home owners consumption

• Maintenance and repair of dwellings– Large component using HBS – approx 50 bill kroner and 12 times

higher than in NA – Treated as investments in NA

• Actual rents and imputed rents– Both is covered in the national CPI– Imputed rents to be excluded from the HICP weighting base.

Inflation purpose and the requirement for data based on actual, monetary transactions.

Financial services nec

• Financial services nec – from HBS to NA– A weight share of 0,1 per cent using the HBS.– Implementing NA increases the share to 3 per cent for 2007.The

FISIM share was 2,1 per cent.

• Financial services (12.6) (bill. kroner) measured by NA Value Volume

2005 2006 2007 2005 2006 2007

Total 21,8 24,3 28,6 22,1 25,5 28,1

FISIM 14,4 16,0 18,2 15,2 17,5 18,8

Paid services 7,4 8,3 10,4 7,0 8,0 9,2

NA implisitt deflators. 2005 - 2007

0,600

0,700

0,800

0,900

1,000

1,100

1,200

1,300

2005 2006 2007

Paid services FISIM Total

100

105

110

115

120

125

130

jan

.03

ma

i.03

sep

.03

jan

.04

ma

i.04

sep

.04

jan

.05

ma

i.05

sep

.05

jan

.06

ma

i.06

sep

.06

jan

.07

ma

i.07

sep

.07

jan

.08

ma

i.08

sep

.08

jan

.09

ma

i.09

sep

.09

Finansielle tjenester

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