1. Part 2 The recommendation on processing scanner data Berthold Feldmann Eurostat Unit C4 Price Statistics; Purchasing Power Parities; Housing Statistics

2. Scanner Data Workshop – Rome October 2015 2 Structure of the talk  The challenges  The two alternative approaches  What should be part of the recommendation?  Timetable 2

3. Scanner Data Workshop – Rome October 2015 Need for a recommendation  By 2020 more than half of all NSIs may use scanner data for supermarkets  More and more tests are performed to expand the use of scanner data to clothing, electronic goods and other areas  Recommendations are needed  to help NSIs use scanner data in an efficient way  to assure the comparability of the results across Europe  A meeting 8 th & 9 th Sep. among the NSIs using scanner data was the starting point for this recommendation 3

4. Scanner Data Workshop – Rome October 2015 Challenges in using scanner data  Treating big data sets  Identification of the articles  Linking products (GTIN or internal shop codes) to ECOICOP  Product replacement in such a large data set  The low life expectancy of GTINs  New GTINs may be re-launches 4

5. Scanner Data Workshop – Rome October 2015 The two approaches  Over the past 15 years two alternative approaches in using scanner data as a source of HICP emerged  The fixed basket approach (FBA) and  The dynamic sampling approach (DSA)  The names may be slightly misleading since  In the FBA the basket also changes because of product replacement  In the DSA the sample (basket) overlaps from month to month by more than 80% 5

6. Scanner Data Workshop – Rome October 2015 How to come to recommendations  First proposals will be based on currently implemented methods  It will contain 'recipes' that currently work  It will also contain warnings, i.e. lessons learnt in the NSIs (don't do…)  All drafting in close cooperation with all stake holders 6

7. Scanner Data Workshop – Rome October 2015 Possible issues for the recommendation?  Both alternative approaches?  Automation of the processes?  Use GTINs or shop internal codes?  Mapping GTINs to COICOP?  Cut-off levels for insignificant products – filters?  Imputation of missing prices?  Handling seasonal goods?  What other questions are missing? 7

8. Scanner Data Workshop – Rome October 2015 Tentative timetable  A first draft of the recommendation (for supermarkets)March 16  First discussion in the TFQISpring 16  Discussion in the PSWGNovember 16  Extension to clothing, electronic goods and others2017 8

9. Scanner Data Workshop – Rome October 2015 Discussion in the same 6 groups What topics are missing? What topics can be dropped? What should be the main focus? Both approaches? Process automation? GTINs or shop internal codes? Mapping? Filters? Imputation? Seasonal goods?

10. The same groups as before….

11. Thank you for your attention! Comments or questions?