Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/307601 
Year of Publication: 
2024
Series/Report no.: 
Technical Paper No. 06/2024
Publisher: 
Deutsche Bundesbank, Frankfurt a. M.
Abstract: 
The Harmonised Index of Consumer Prices (HICP) co-exists with the national Consumer Price Index (CPI) as a key measure of inflation in Germany. Both indices are based on the same granular price data and uniform compilation methods at the lower levels of aggregation. However, differences arise at the upper level, concerning e.g. coverage, index formula, weighting schemes and revision practices. Weighting is a major source of differences but its impact is expected to diminish because, in the last base year changeover, national accounts replaced household budget surveys as the dominant source for deriving five-year fixed CPI weights. This change increases conformity with the annual updating procedure for HICP weights. By contrast, the integration of the cost of owner-occupied housing (OOH) into the HICP might increase the differences between these key measures if, following the ECB's request in its 2020/2021 Monetary Policy Strategy Review, the acquisition approach were implemented. Choosing different options can be rationalized with a number of criteria (e.g. alignment with user interest, main purposes, public acceptance, practicality). As differences matter empirically, communication is important.
Subjects: 
Inflation measurement
weighting
owner-occupied housing
JEL: 
E31
C43
Document Type: 
Working Paper

Files in This Item:
File
Size





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.