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The Harmonized Price Index (HICP) for July 2018 increased by 1,4% when compared to July 2017, while compared to June of 2018 decreased by 0,2%. For the period January-July 2018 the HICP increased by 0,2% 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 estimation (flash estimate).

Compared to the index of July 2017, the largest change was noted in Housing, Water, Electricity, Gas and Other Fuels with a percentage of 6,1%. (Table 1)

In comparison to HICP of June 2018, the largest change was recorded in Clothing and Footwear (-17,4%). (Table 1)

For the period January - July 2018, compared to the corresponding period of the previous year, the largest changes were noted in Clothing and Footwear (-3,1%) and in Furnishings, Household Equipment and Routine Maintenance of the House (-3,0%). (Table 1)

As regards to the economic origin, the largest change when compared to the index of July 2017 was observed in Energy with a percentage of 13,0%. In comparison to the index of the previous month, the biggest change was noticed in Non Energy Industrial Goods (-5,5%). (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.

Further information:

Constandia Papageorgiou: Tel.: +35722602116, E-mail: cpapageorgiou@cystat.mof.gov.cy

Andri Eftychiou: Τel.: +35725878595, E-mail: aeftychiou@cystat.mof.gov.cy

(ML/II)