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In April 2020 the HarmonizedIndex of Consumer Prices decreasedby1,2% comparedtothe index of April 2019 while, when compared to the index of March 2020, the HICP decreased by 0,1%.For theperiodJanuary-April 2020 the HICP recorded an increase of 0,1% compared to the corresponding period of the previous year. (Table 1)

Note: The HICP in Euro area for the last month is based on EUROSTAT’s estimation (flash estimate).

Compared to April 2019, the categories Transport and Clothing and Footwear had the largest negative change with percentages of 5,6% and 3,3% respectively. The largest positive change was observed in category Communication with a percentage of 3,3%. (Table 1)

Compared to March 2020, the largest change was recorded in the category Housing, Water, Electricity, Gas and Other Fuels (-4,8%). (Table 1)

For the period January-April 2020, compared to the corresponding period of the previous year, the largest positive change was noted in Communication (3,7%), whereas the largest negative change was recorded in Clothing and Footwear (-2,9%). (Table 1)

As regards the economic origin, the largest change when compared both the index of April 2019 and to the previous month was observed in the category Energy with percentages of -10,5% and -11,0% respectively. (Table 2)

Methodological Notes

Definitions

The Harmonized Price Index (HICP) an economic indicator constructed to measure the changes of prices over time of consumer goods and services acquired, used or paid by households and tourists within the economic territory of the country. The HICP is calculated according to a harmonized approach and methodology laid down by a series of regulations of EU.

The Annual change shows the change of the HICP when compared with the index of the corresponding month of the previous year.

Products/Services

From January 2018 and onwards, the products included in the HICP have been revised. The revision was based on the results of the Household Budget Survey 2015/2016.

Collection

The price collection is carried out only in urban districts of Nicosia, Larnaca, Limassol and Paphos. For each city, the fluctuations in the product prices each month are weighted according to their population. Specifically, the weights for the four districts are: Nicosia 42%, Limassol 30%, Larnaca 18% and Paphos 10%.

The prices of 805 goods and services are recorded once every month, except for some seasonal products (e.g vegetables and fruits), meat and fuels, whose prices are collected every week (every Thursday). The collected prices are those actually paid by consumers for the purchase of specific goods and services, and they include various taxes, such as the Value Added Tax and excise duties. For the calculation of the Index end-of-season sales prices are taken into account as well as special offer prices which are available for the general public and have no restrictions.

Weights

The weight of the HICP goods and services are calculated based on consumption expenditure (of both households and tourists) incurred in the economic territory of the country. Up to 2011, the main source for the consumption expenditures was the Household Budget Survey, while from 2012 and onwards, data from the National Accounts are utilized satisfying relevant Eurostat’s Regulation (No 1114/2010).

Base year

The index reference period was 2005=100 for the period between January 2006 and December 2015. From January 2016 and onwards, the base year is 2015=100.

Classification                                                                                                                 

Until December 2015, COICOP 4 classification was used for the calculation and the dissemination of the HICP. From January 2016 and onwards, CYSTAT is adopting the ECOICOP classification satisfying relevant Eurostat’s Regulation. In other words, the lowest level of detail for the classification used in CPI is COICOP 5-digits.

With the publication of February 2019, CYSTAT is publishing HICP special aggregates (economic origin) compiled from more detailed input data.

Exceptional Methodological Adjustment

The implementation of precautionary measures and relevant decrees to address the negative consequences of COVID-19 disease had a direct impact on the price collection process for the month of April due to the limitation in price collection from certain stores/ businesses. As the problems anticipated were common to all Member States of the European Union they were tackled by applying the same methodologies under the supervision and guidance of the European Statistical Office (Eurostat).

Data Collection

Field collection was carried out in supermarkets, bakeries and kiosks, while for the other retailers that were still offering their products to consumers, prices were collected either via telephone or online.

Missing Prices

In cases where products/goods were not available for consumption, the following practices were followed:

-Missing prices were imputed by the price change of other products or services in the same subcategory,

-In the cases where all the prices were missing for a subcategory, then the previous’ month collected price data were taken as the price of the present month and it included prices that rarely change such as cultural services or services connected with the personal care.

Seasonal Products/Services

The airfares along with the prices for hotel accommodation were estimated by carrying forward previous’ month prices adjusted with the seasonal factor recorded last year, during April.

Weights

The weights of goods and services in the HICP basket have not been adjusted.

Further information:

Statistical Service (CYSTAT) Website, subtheme Harmonized Index of Consumer Prices

Contact

Constandia Papageorgiou: Tel: +35722602116, Email: cpapageorgiou@cystat.mof.gov.cy

Andri Eftychiou: Τel: +35725878595, Email: aeftychiou@cystat.mof.gov.cy

(ND/SCH)