1 The CPI and HICP Some weighting issues Tom Andersen Langer Division for Price Statistics

Background Statistics Norway has produced price statistics on financial services since Covering services in stock brokerage, saving funds and other services paid directly by the consumer. The FISIM represents a new area in the CPI We are currently preparing a transition from using the HBS to National Account as the primary weight source. – Indexes produced in accordance with conceptual frames –And requirements laid down in EU-regulations and definitions

DS HICP - Item weights. Financial services n.e.c. excl. FISIM geo/time2009A00 Flags and Footnotes2010A00 Flags and Footnotes Poland29,4 31,5 United Kingdom28,0 Denmark20,3 20,7 Sweden20,9 19,1 Portugal18,2 18,4 Switzerland22,9 18,2 Iceland18,4 15,6 Slovenia14,4 13,7 Netherlands12,9 13,3 Czech Republic12,7 11,5 Luxembourg11,3 10,8 Finland8,7 9,3 Italy9,3 9,1 Hungary5,2 6,7 France6,2 6,4 Slovakia4,4 5,9 Germany (including ex-GDR from 1991)5,6 Latvia4,4 4,6 Austria3,8 3,9 Malta1,5 3,4 Belgium2,5 Cyprus2,0 Greece1,8 2,0 Croatia1,8 (i)2,0 (i) Estonia1,3 1,5 Ireland1,5 1,4 Norway1,7 1,3 Lithuania0,8 Spain0,4 Bulgaria0,2 0,3 Romania0,1 Turkey0,1 (i)0,1 (i)

Conceptual issues The CPI based on the resident concept –Comprises consumption by Norwegian habitants home and abroad –The consumption abroad (mainly tourism) is measured on aggregate level only. Approx 6 per cent of total consumption. The HICP according to the domestic concept –Comprises consumption by Norwegian citizens home and foreign citizens (mainly tourism) visiting Norway –Foreign citizens consumption data are available on detailed level. Approx 3 per cent of total consumption

Home owners consumption Maintenance and repair of dwellings –Large component using HBS – approx 50 bill kroner and 12 times higher than in NA –Treated as investments in NA Actual rents and imputed rents –Both is covered in the national CPI –Imputed rents to be excluded from the HICP weighting base. Inflation purpose and the requirement for data based on actual, monetary transactions.

Financial services nec Financial services nec – from HBS to NA –A weight share of 0,1 per cent using the HBS. –Implementing NA increases the share to 3 per cent for 2007.The FISIM share was 2,1 per cent. Financial services (12.6) (bill. kroner) measured by NA Value Volume Total 21,8 24,3 28,6 22,1 25,5 28,1 FISIM 14,4 16,0 18,2 15,2 17,5 18,8 Paid services 7,4 8,3 10,4 7,0 8,0 9,2