1 1 Treatment of clothing and footwear – new Regulation 1. Definitions 2. Minimum standards 3. Impact on Norwegian HICP

2 Definitions Seasonal products –goods and services not available for purchase, –or purchased in small or negligible volumes, for certain periods in a typical annual cyclical pattern. Counter-seasonal estimation –first month out-of-season period - estimated price is equal to a typical price observed in the previous in-season period –second month - adjusted by the change in observed prices on average over all seasonal products that are in-season in the same subdivision of COICOP/HICP

3 Definitions All-seasonal estimation –first month out-of-season period - estimated price is equal to a typical price observed in the previous in-season period –second month - adjusted by the change in observed prices on average over all available products in the same subdivision of COICOP/HICP, Strict annual weights index –a price index using weightings that do not differ between months within the same year at all levels of index calculation;

4 Definitions Class-confined seasonal weights index –a price index using weightings that within the same year do not differ between months for any COICOP/HICP subdivision taken as a whole, do not differ between months for products within any COICOP/HICP subdivision that does not contain any seasonal product.

5 Regulation Minimum standards –In any given month, seasonal products shall be deemed to be either in-season or out-of-season. In-season periods may vary from one year to another. –An HICP sub-index at elementary product group level shall be a strict annual weights index or a class-confined seasonal weights index. –Shall apply to seasonal products within the following COICOP/HICP classes and groups: Fish Fruit Vegetables 03.1 Clothing 03.2 Footwear

6 HICP as a strict annual weights index; –Estimated price for a product-offer of a seasonal product that is out- of-season shall be defined either by; counter-seasonal estimation or by all-seasonal estimation –Estimations may be performed at a more detailed level than the subdivision of COICOP/HICP, such as for strata if a stratified sample is being used

7 Class-confined seasonal weights index; –Seasonal product that is out-of-season shall have a weight of zero –Seasonal weights may also be established at a more detailed level

8 Impact Norwegian HICP Changes in the methodology as of January 2011 due to the regulation xxx x xx x x x x Out-of season xx x x x time index

9 Impact Norwegian HICP Minor –Limited number of products classified as seasonal products in the Norwegian HICP/CPI –Indices more volatile on product level, but the effects seem to be temporarily –Impact on the Norwegian HICP/CPI in February/March and August/September –The effect on the all-item index is estimated to be less than 0.1 percentage point

10 Questions or comments?