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Treatment of clothing and Treatment of clothing and footwear – new Regulationfootwear – new Regulation

1. Definitions

2. Minimum standards

3. Impact on Norwegian HICP

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Definitions

• “Seasonal products” – goods and services not available for purchase, – or purchased in small or negligible volumes, for certain periods in a

typical annual cyclical pattern.

• “Counter-seasonal estimation”– first month out-of-season period - estimated price is equal to a

typical price observed in the previous in-season period– second month - adjusted by the change in observed prices on

average over all seasonal products that are in-season in the same subdivision of COICOP/HICP

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Definitions

• “All-seasonal estimation” – first month out-of-season period - estimated price is equal to a

typical price observed in the previous in-season period– second month - adjusted by the change in observed prices on

average over all available products in the same subdivision of COICOP/HICP,

• “Strict annual weights index” – a price index using weightings that do not differ between months

within the same year at all levels of index calculation;

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Definitions

• “Class-confined seasonal weights index” – a price index using weightings that within the same year do not differ

between months for any COICOP/HICP subdivision taken as a whole, — do not differ between months for products within any COICOP/HICP subdivision that does not contain any seasonal product.

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Regulation

• Minimum standards– In any given month, seasonal products shall be deemed to be either

in-season or out-of-season. In-season periods may vary from one year to another.

– An HICP sub-index at elementary product group level shall be a strict annual weights index or a class-confined seasonal weights index.

– Shall apply to seasonal products within the following COICOP/HICP classes and groups:

01.1.3 Fish 01.1.6 Fruit 01.1.7 Vegetables 03.1 Clothing 03.2 Footwear

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HICP as a strict annual weights index;

– Estimated price for a product-offer of a seasonal product that is out-of-season shall be defined either by;

counter-seasonal estimation or by all-seasonal estimation

– Estimations may be performed at a more detailed level than the subdivision of COICOP/HICP, such as for strata if a stratified sample is being used

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Class-confined seasonal weights index;

– Seasonal product that is out-of-season shall have a weight of zero – Seasonal weights may also be established at a more detailed level

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Impact Norwegian HICP

• Changes in the methodology as of January 2011 due to the regulation

x x xx

x xx x

x x

Out-of season

xxx x

x

time

inde

x

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Impact Norwegian HICP

• Minor– Limited number of products classified as seasonal products in the

Norwegian HICP/CPI – Indices more volatile on product level, but the effects seem to be

temporarily– Impact on the Norwegian HICP/CPI in February/March and

August/September– The effect on the all-item index is estimated to be less than 0.1

percentage point

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Questions or comments?Questions or comments?