Consumer price index: documentation of statistics

Data description (SIMS 3.1)

The Consumer Price Index describes development in the prices of products and services purchased by households in Finland. The Consumer Price Index is used as a general measure of inflation. The Consumer Price Index is calculated with a method in which the prices of different commodities are weighed together with their shares of consumption. The calculation of the index follows Laspeyres’ price index formula whereby the shares of consumption used as the weights relate to the base period. Consumer price indices that are reviewed at intervals of a fixed number of years are suitable for short-term examinations. From the user’s point of view, the Cost-of-living Index is the most practical, because index revisions do not interrupt the series. The Cost-of-living Index 1951:10=100 is a long time series calculated by chaining from the latest Consumer Price Index 2015=100, for which reason its development follows the Consumer Price Index. The point figures are published monthly at the same time as the Consumer Price Index. The index adjustment of rental agreements on dwellings, business premises and land can be tied to the Cost-of-living Index. In addition to their national Consumer Price Index, the Member States of the European Union also produce a Harmonised Index of Consumer Prices. Its main purpose is to enable comparisons of inflation between the EU Member States. The European Central Bank uses the Harmonised Index of Consumer Prices as the measure of inflation in its monetary policy. Calculation of the Harmonised Index of Consumer Prices is guided by EU Regulations. Eurostat, the Statistical Office of the European Union, calculates the European Index of Consumer Prices and the Monetary Union Index of Consumer Prices by weighting together the Harmonised Indices of Consumer Prices calculated by the Member States. The Finnish Harmonised Index of Consumer Prices is mainly based on the same price data and national accounts data as the Finnish national Consumer Price Index. The development of the Harmonised Index of Consumer Prices deviates slightly from that of the national consumer price indices, because it includes fewer commodities. In the Harmonised Index of Consumer Price, the concept of consumption excludes owner-occupancy, games of chance, interests and tax-like payments. Its coverage of the national Consumer Price Index is therefore slightly less than 85 per cent.

Concepts and definitions (SIMS 3.4)

Annual change

Annual change is the relative change of the index in comparison with the corresponding time period one year ago (e.g. annual change of total index of consumer prices, i.e. inflation).

Base index

In the base index the price of the calculation period is always compared with the base period. In the base index weights are usually changed less often than yearly, for example, at intervals of five years.

Chain index

In the chain index the comparison takes place always between successive calculation periods. In the chain index the change in two calculation periods is used to take forward the index point figure of the desired base period. In the chain index the weights are changed in principle in each calculation period. At times the chain index is also mentioned in such cases where the comparison period is retained fixed in comparisons within the year, but the comparison period and the weight structure of the index is changed whenever the year changes.

Consumer price

The real price paid by consumers for a good or service (including taxes, in retail trade).

Consumer price statistics

A monthly release made on the Consumer Price index material, which contains average prices for certain daily consumer goods and some other simple commodities by major region.

Effect list of price changes

The list that shows the changes of commodities and/or aggregate level indices and the effects of the changes on the total index. The review periods are changes from the previous month, from the previous year's December and from the previous year to the review period. Available from the official Consumer Price Index monthly.

Index

An index is a ratio describing the relative change in a variable (e.g. price, volume or value) compared to a certain base period (e.g. one year). The index point figure for each point in time tells what percentage the given examined variable is of its respective value or volume at the base point in time. The mean of the index point figures for the base period is 100.

Index formula

Index formula is a mathematical function by means of which an individual key figure describing change is calculated from observation values (e.g. Fischer, Laspeyres and Paasche index formulas).

Monthly change

Monthly change is the relative change in the index from a time period one month earlier. The change is usually expressed as a percentage.

Point figure

Point figure is a change quantity used in price indices, which expresses the price, average price or index of the comparison period relative to the price, average price or index of the base period. The point figure of the base period is usually denoted by the number hundred. For example, if the point figure for a commodity at a certain point in time is 105.3, it means that the price of that commodity has risen by 5.3 per cent from the base period.

Special index

A "tailored" index made to customer order, where the commodities and weight structure are defined by the customer. The weights used in the index can be either Statistics Finland's or the customer's own weights.

Total index

Total index is the index calculated as a weighted average from all the sub-series belonging to the description area of the index. Total index can be calculated as a weighted index of detailed price index series describing different commodity groups.

Weight structure

Describes what meaning each sub-index (commodity, employee group, etc.) belonging to the index has for total index.

Institutional mandate (SIMS 6)

Quality assurance (SIMS 11.1)

Release calendar (SIMS 8.1)

User access (SIMS 8.3)

Confidentiality - policy (SIMS 7.1)