1
1
Treatment of clothing and Treatment of clothing and footwear – new Regulationfootwear – new Regulation
1. Definitions
2. Minimum standards
3. Impact on Norwegian HICP
2
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
3
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;
4
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.
5
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
6
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
7
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
8
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
9
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
10
10
Questions or comments?Questions or comments?