The Harmonized Index of Consumer Prices (HICP) is a Laspeyres-type index, covering the categories of the COICOP/HICP (classification of individual consumption by purpose adapted to the needs of the HICP). HICPs for Estonia are available from 1996 (earlier figures are estimates based on the national CPI).
Differences between the HICP and national CPI – Domestic approach is used for HICP. National approach is used for CPI. There are no consumption expenditures which are included in the HICP but excluded from CPI. Some elements of games of chance (lotteries) are included in the CPI but excluded from HICP. HICP weights are updated to December of (t-1), but CPI weights are not.
Statistical Office of Estonia updates every year the weights system of consumer price indices and base prices for calculations. In the current year (t) the reference prices for the calculations are the prices of the last year (t-1) December. The calculations are made on the base last year December = 100. The weights system of HICP corresponds to the structure of private expenditure on the territory of Estonia in the last year updated to December (t-1) (CPI: to the average expenditure structure of the population of Estonia). To ensure the comparison with previous periods, the index reference period for HICP is 2005 = 100. Last year December is the linking month. The breakdown into groups of consumption is based on the Classification of Individual Consumption by Purpose (COICOP/HICP). Prices of goods and services are registered in ten Estonian towns every month. The observation period is the week including the 15th day of the month.
The HICP is published in accordance with the Eurostat's Timetable for Transmission of Monthly HICP Results.
The annual index has been calculated as the average of 12 months.
Classification of individual consumption by purpose adapted to the needs of the HICP (COICOP/HICP)
Example is valid for the indices published on the base period (here: 2005 = 100).
We want to know how much the HICP has changed in January 2020 compared with January 2019.
|HICP (2005 = 100)|
We find from the table
January 2020 – 158.67
January 2019 – 156.12
158.67 : 156.12 = 1.016 times or
(158.67 : 156.12) x 100 - 100 = 1.6%.
Economic and Environmental Statistics Department
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