New approach to single market monitoring Session 4: Typology of needs and data requirements Eurostat Conference “Reviewing the business architecture of consumer price statistics” Alexandre Makaronidis Head of Price Statistics Unit

New approach to single market monitoring The new approach to single market monitoring has put detailed price data at the centre of this policy and thus, in Eurostat's view, the need for a new strategy for price statistics high within the statistical priorities of the ESS. Not all policy-data issues are for official statistics to address, but this need is one we think the ESS can address. The following provides an attempt to sum-up new and established user needs and show a way forward taking into consideration the results of empirical work so far. 15-16/10/2009 Eurostat Conference – Reviewing the Business Architecture of Price Statistics

New approach to single market monitoring ESS STRATEGY FOR PRICE STATISTICS DETAILED PRICES 15-16/10/2009 Eurostat Conference – Reviewing the Business Architecture of Price Statistics

What are the needs in terms of consumer prices? More detailed price indices: more detailed sub-indices for HICPs and PPPs regional HICPs and PPPs more special aggregates for the HICP (frequent out-of-pocket purchases; HICP at constant taxes) …/… 15-16/10/2009 Eurostat Conference – Reviewing the Business Architecture of Price Statistics

What are the needs in terms of consumer prices? (continued) Regular measurement of price dispersion across markets, over space and time Regular measurement of detailed price levels Better integration of consumer price statistics with other price statistics picture of prices through the supply chain 15-16/10/2009 Eurostat Conference – Reviewing the Business Architecture of Price Statistics

Can we achieve it? Some say the detailed prices project is: ‘— By far too much’, ‘— By far too difficult’, and if so ‘— We need to start from scratch’ However, empirical work so far suggests that: ‘— It can be achieved – at reasonable costs.’ In particular, much can be achieved by better integrating HICP and PPP (data and methodologies) 15-16/10/2009 Eurostat Conference – Reviewing the Business Architecture of Price Statistics

What are the key issues? More classifications work: more detailed COICOP, common to HICPs, PPPs and HBSs (from min. 600 to max. 1,000 positions) more effective use of the classification systems used by retailers A more efficient approach to specifying the prices we collect (through HICP or PPP samples) An infrastructure that enables a more effective use of the prices collected 15-16/10/2009 Eurostat Conference – Reviewing the Business Architecture of Price Statistics

For this to be achieved: We need to debate old ‘fixed’ positions on what is comparable and what is representative how these statistics are collected, what they mean, and what they could be used for. Statisticians working in both domains will need to debate and compromise. Better adjust temporal comparisons to developments in quality and consumer preferences. Base spatial comparisons on alternative definitions. 15-16/10/2009 Eurostat Conference – Reviewing the Business Architecture of Price Statistics

Benefits to both HICPs and PPPs There will be one platform for both HICPs and PPPs for a constant dialogue between users and producers on which data can best be used to address present, emerging and shifting needs in the future. Reduction of known statistical inconsistencies between HICPs and PPPs Further integration will allow better quality control and improve the reliability of both statistics. 15-16/10/2009 Eurostat Conference – Reviewing the Business Architecture of Price Statistics