Titlebook: Measuring EU Inflation; The Foundations of t John Astin Book 2021 The Editor(s) (if applicable) and The Author(s), under exclusive license

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Country AggregationAlthough each EU member state is required to compile its own national HICP, following the HICP regulations, it should be recalled that the most important focus of the HICP project was (and is) to have an overall macroeconomic inflation index not only for the whole of the EU, but, in particular, for the member states of the Monetary Union (MU).

maintenance

Expansion of the EU; Establishment of EMU and EuroIn the early days of the HICP, the EU member states were the largest and most important group of countries involved in the project. At the time of the HICP launch in early 1997 there were 15 member states.

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Classification of Household Consumption Expenditure; HICP Sub-indicesways. Goods could be classified according to their main component: glass, metal, wood, cloth, plastic, etc.—this could be fairly closely matched to the types of outlet which sell them. They could be classified by price, with cheaper products at one end and expensive ones at the other.

Prognosis

Index Formulaey days of the HICP it did not rank quite so high in the discussions, though it was always regarded as an important issue. Most of the controversies surrounding this topic focus on the formula used at the level of the elementary aggregate.

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Price Collection Issues of consumer transactions take place every year and until we reach a level of electronic sophistication beyond our current imagination, transaction prices and indeed weights must be based on relatively tiny samples.

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Treatment of Special Productsproducts. The products concerned are: Health, education and social protection services; Owner-occupied housing; Proportional service charges; Insurance; Data processing equipment; Miscellaneous products

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