Consumer Prices Index up in Oct

11 Nov '05

3 min read

The HCSO calculates this indicator from the CPI by eliminating the non-processed food items, pork fat, flour and goats and bacon from processed food, electricity, gas, and other fuels main group, other seasonal items, pharmaceutical products that are reimbursed by the social security, services which prices are centrally determined by authorities and the owner occupied dwellings item.

The new core inflation indicator is calculated on December 1994 base. The CONSTANT TAX RATE INDEX (CTI) eliminates from the CPI the impact of changes of the most important indirect taxes (VAT, consumption taxes, excise duties, registration taxes for new motor cars).

The CTI shows that how much the CPI would be if the reference period (December of the previous year) tax rates were in force in the current observation period. The aim of the CTI's calculation is the separation of the impact of indirect tax changes within the CPI. CTI is calculated on the base of December of the previous year similarly to the CPI and the same weights are applied for the aggregation of the CTI's sub-indices.

The HARMONIZED CONSUMER PRICE INDICES (HICP) are not and will never be "fully" harmonised consumer price indices, in as much as the aim is comparability and not full harmonisation.

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The HICPs are not intended to replace national CPIs. Many Member States are likely to continue their existing CPIs for domestic purposes. The harmonized indices were based on existing national CPIs, but in contrast to the interim indices the HICPs are harmonized in several methodological areas as well as coverage.

The additions to coverage as compared with the interim indices are, for example, banking services, some educational and health goods and services from January 2000 and social protection services, hospital services from January 2001.

Hungary Hungarian Central Statistical Office

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