Producer price indices volume 2002, Supplement 2

TABLE OF CONTENTS
1. INTRODUCTION..............................................................................................................................7
1.1
Necessity for metadata in interpreting data .........................................................................7
1.2
Aim of this publication........................................................................................................7
1.3
International guidelines for short-term economic indicators...............................................9
1.4
Statistical methodological information for international comparisons..............................10
1.5
Target indicators for Main Economic Indicators ..............................................................14
1.6
Target definitions for MEI target indicators......................................................................16
1.7
Collection of methodological information for this publication .........................................16
1.8
Conclusions .......................................................................................................................17
1.9
Feedback on contents ........................................................................................................17
2. CONSUMER PRICES.....................................................................................................................19
2.1
Introduction .......................................................................................................................19
2.2
CPI indicators in the MEI..................................................................................................20
2.3
Harmonised Indices of Consumer Prices - HICPs.............................................................21
2.4
Measuring Underlying Inflation in MEI............................................................................21
2.5
Zone estimates of CPI in the MEI .....................................................................................22
2.6
Frequency of consumer price indices ................................................................................23
2.7
International guidelines and recommendations .................................................................24
2.8
Access to detailed methodological information ................................................................24
2.9
Scope/Coverage.................................................................................................................26
2.9.1
Reference population.........................................................................................................27
2.9.2
Types of expenditures and transactions covered ...............................................................34
2.10
Basic Data..........................................................................................................................37
2.10.1
Weighting data ..................................................................................................................37
2.10.2
Frequency of revising/updating weights............................................................................38
2.10.3
Item selection ....................................................................................................................39
2.10.4
Outlet selection..................................................................................................................40
2.10.5
Price collection methods....................................................................................................40
2.10.6
Item/product specification .................................................................................................41
2.11
Index Calculation...............................................................................................................41
2.11.1
Computation of lowest level indices (elementary aggregation) ........................................41
2.11.2
Index aggregation ..............................................................................................................42
2.11.3
Alignment of expenditure and price reference base ..........................................................43
2.11.4
Chaining re-weighted indices ............................................................................................43
2.12
CPI Problem Areas ............................................................................................................43
2.12.1
Missing prices....................................................................................................................43
2.12.2
Seasonal items ...................................................................................................................45
2.12.3
Quality changes .................................................................................................................48
2.13
Treatment of rent and home ownership.............................................................................53
2.13.1
What is being consumed? ..................................................................................................54
2.13.2
Which measurement approach (user-cost, acquisitions or payments) is appropriate? ......55
2.13.3
Owner-occupied housing in OECD Member Countries....................................................57
2.13.4
Should expenditure weights, and thus prices, be imputed in CPIs? ..................................58
2.13.5
Should interest be included in CPIs?.................................................................................59
2.13.6
Rented housing ..................................................................................................................59

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MEI Methodological Analysis - Supplement 2
© 2002
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