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16-06-2021 14:07

Harmonized Index of Consumer Prices (HICP): May 2021 (Annual Rate of Change 1,5%)

In May 2021 the Harmonized Index of Consumer Prices increased by 1,5% when compared to the index of May 2020 while, when compared to the index of April 2021, the HICP increased by 0,4%. For the period January – May 2021 the HICP recorded an increase of 0,3% 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 May 2020, the largest changes were noted in Transport and Housing, Water, Electricity, Gas and Other Fuels with percentages of 10,5% and 5,0% respectively. (Table 1)

Compared to April 2021, the largest positive changes were recorded in Restaurant and Hotels (1,8%) and Food and Non-Alcoholic Beverages (1,1%), while the largest negative change was noted in Clothing and Footwear (-1,2%). (Table 1)

For the period January – May 2021, compared to the corresponding period of the previous year, the largest positive change was recorded in Transport (4,4%) and the largest negative change in Communication (-3,3%). (Table 1)

As regards the economic origin, the largest change when compared both to the index of May 2020 and to the index of the previous month was observed in Energy with percentages of 18,3% and 1,9% respectively. (Table 2)

Table 1

Categories of Goods and Services

HICP (2015=100)

Change (%)

April 2021

May 2021

May 21

May 20

May 21/

Apr 21

Jan-May 21/

Jan-May20

Food and Non-Alcoholic Beverages

100,80

101,91

-2,6

1,1

-2,5

Alcoholic Beverages and Tobacco

96,02

96,04

-1,3

0,0

-1,2

Clothing and Footwear

102,54

101,30

3,8

-1,2

2,7

Housing, Water, Electricity, Gas and Other Fuels

109,71

110,16

5,0

0,4

-1,8

Furnishings, Household Equipment and Routine Maintenance of the House

94,31

94,22

-0,5

-0,1

-0,5

Health

102,97

103,02

0,7

0,0

0,5

Transport

97,37

97,55

10,5

0,2

4,4

Communication

91,29

91,28

-1,2

0,0

-3,3

Recreation and Culture

104,23

104,36

3,0

0,1

2,8

Education

105,53

105,53

0,2

0,0

0,0

Restaurants and Hotels

99,99

101,76

-1,9

1,8

-0,5

Miscellaneous Goods and Services

101,38

101,30

0,9

-0,1

0,6

General Harmonised Consumer Price Index

100,70

101,15

1,5

0,4

0,3

 

 

Table 2

 

Economic Origin

Weights

Change (%)

 

May 21/May 20

May 21/Apr 21

 

General HICP

1000

1,5

0,4

 

Energy

84,01

18,3

1,9

 

Food-Alcoholic Beverages-Tobacco

236,04

-2,3

0,8

 

Non energy industrial goods

219,83

1,4

-0,3

 

Services

460,13

0,5

0,3

 

 

           

Note: The weights of the categories are calculated with infinite decimal figures and rounded up to two decimals when published. Figures do not add up to the total due to rounding.

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 Lefkosia, Larnaka, Lemesos and Pafos. 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: Lefkosia 42%, Lemesos 30%, Larnaka 18% and Pafos 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.

Methodological change                                                                                           

Following Eurostat’s requirement for the HICP in order to be in line with Regulation No 330/2009, a different method for the compilation of the index of fresh fruits and vegetables has been applied starting with the index of January 2021. The HICP of May 2021 with the index of fruits and vegetables compiled with the previous method would be 101,37 units and the inflation 1,8%.

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 of certain goods/services for the month of May 2021. 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).

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.

Seasonal Products/Services

The missing airfares were estimated by carrying forward previous’ month prices adjusted with the seasonal factor recorded last year. The missing prices for hotel accommodation were estimated in order to preserve their seasonal pattern.

Weights

The weights of goods and services in the HICP basket have been reviewed and adjusted to be representative for expenditures shares of 2020. The weights are kept constant throughout the year.

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

 

(IK/ECHR)