Abstract

The Consumer Price Index Manual: Concepts and Methods contains comprehensive information and explanations on compiling a consumer price index (CPI). The Manual provides an overview of the methods and practices national statistical offices (NSOs) should consider when making decisions on how to deal with the various problems in the compilation of a CPI. The chapters cover many topics. They elaborate on the different practices currently in use, propose alternatives whenever possible, and discuss the advantages and disadvantages of each alternative. The primary purpose of the Manual is to assist countries in producing CPIs that reflect internationally recommended methods and practices.

Appendix 1 The Harmonised Index of Consumer Prices (European Union)

Introduction

The Harmonised Index of Consumer Prices (HICP) is a specific inflation measure that is developed within the European Union (EU) to result in indices that can be directly compared and aggregated across countries. The HICP is the outcome of major harmonization work by the statistical office of the EU (Eurostat) and the EU countries.

The HICP is a cost of goods index; that is, it measures the changing cost of a fixed basket of products over time. The production of the HICP and its methodology are governed by EU law, which gives the common definitions and concepts to follow. The key HICP aggregates are the euro area index, covering the countries whose currency is the euro, the EU index, and the national HICP for each of the EU countries. Eurostat publishes also HICPs for countries that are not part of the EU, which produce the data on voluntary basis. The national statistical offices produce the national HICP, while Eurostat produces the country-group aggregates.

The HICP serves two main purposes:

  • For quantifying the price stability in the European Central Bank’s monetary policy strategy. Maintaining price stability is the primary objective of the European Central Bank and the national central banks of the euro area, as set out in the Treaty on the Functioning of the European Union. The ECB’s Governing Council has defined price stability as a year-on-year increase in the HICP for the euro area of below 2 percent. The Governing Council has clarified that, in the pursuit of price stability, it aims to maintain inflation rates below, but close to, 2 percent over the medium term.

  • For assessing the price stability criterion, which is one of the convergence criteria used to evaluate if a country can join the euro area.

In addition to these specific EU uses, the HICP may be used, like other consumer price indices, for economic analysis and for indexing for example contracts and wages. The HICP has been produced and published since March 1997.

Concepts and Definitions

Household Final Monetary Consumption Expenditure

In general, the concepts, definitions, and conventions adopted in the HICP are as far as possible consistent with those used in the United Nations System of National Accounts 2008 (2008 SNA) and its EU version, the European System of Accounts 2010 (ESA 2010). Among these concepts is that of household final consumption expenditure. For the HICP this has been adapted to refer to the part that occurs in monetary transactions only. This household final monetary consumption expenditure (HFMCE) is thus a narrower concept than household final consumption expenditure, which includes both monetary and nonmonetary transactions. The HFMCE is a fundamental concept for the HICP. It delineates the scope of the HICP, namely that it includes only expenditure on consumption products by the household sector. And that it excludes all capital expenditure, such as the purchase of land or financial assets like stocks and shares, as well as all imputed transactions, own production, and barter.

Coverage

The domestic concept is used to define the geographic coverage of the HICP. This takes into account all HFMCE within the economic territory of a country, whether made by resident or nonresident households. Consumption expenditure incurred by residents when they are outside the country of residence is excluded from the HICP, while expenditure incurred by visitors from other countries is included. Bearing in mind the principal use of the HICP as an indicator for monetary policy purposes, there are two main reasons for using the domestic concept for the coverage of the HICP:

  • By confining expenditure to that incurred within an economic territory, the resulting HICPs cover only those price changes which national/euro area monetary policies can directly influence.

  • Consistent aggregation of national HICPs: if a European aggregate HICP (for example, for the euro area) is compared with another country or economic bloc, it must be certain to represent the whole of consumer price inflation within the euro area and none of it must be double-counted.

Using the domestic concept ensures that these conditions are met. An alternative to the domestic concept is the national concept, where all expenditure incurred by residents of a country, whether nationals or nonnationals, is measured, regardless of whether it is incurred inside or outside the economic territory. It should be noted that both the domestic and national concepts at the world level would produce theoretically the same results with regard to aggregate expenditure. However, at the EU and euro area levels they would not, due to the expenditure of EU/euro area residents outside the EU and the expenditure of non-EU residents within the EU. In practical terms, this makes the domestic concept the easier one to implement, as the national concept would require detailed information on residents’ expenditure and prices paid outside the economic territory.

The HICP product coverage is based on the concept of HFMCE and the 1999 version of the Classification of Individual Consumption According to Purpose (COICOP) to which an additional level of (five-digit) subclasses has been added. Some categories of COICOP are excluded either in principle or on practical grounds from the HICP coverage:

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In principle, “narcotics” and “prostitution” belong to HFMCE but they are not covered in the HICP for practical reasons. “Games of chance” also falls within the scope of the HFMCE. However, they are excluded from the HICP because no harmonized method for their treatment has yet been agreed upon.

“Owner-occupied housing” costs are excluded from the HICP product coverage because no available method is both conceptually consistent with the HICP and able to provide timely data with monthly frequency. The rental equivalence approach is currently considered noncompatible with the HICP on conceptual grounds as that method uses imputations and not actual monetary transactions. Eurostat has instead established a separate index of owner-occupied housing costs using the net acquisition approach. This index meets the requirement of monetary transactions, but can be criticized for including assets (land and dwellings). This is one of the reasons for not including this index into the HICP. In addition, it is apparent that net acquisition-based owner-occupied housing price indices cannot currently be produced monthly and timely in the EU countries. Eurostat is continuing the methodological work required for the integration of an owner-occupied housing price index into the HICP.

The HICP also excludes financial intermediation services indirectly measured consumed by households (that is, those parts of financial services for which an explicit (monetary) charge cannot be identified) because it is considered as an imputed transaction. Note that financial services that have explicit charges, for example, annual charges for credit cards (excluding interest charges), bank charges for money transfers, or currency exchange commissions, are included in the HICP.

Insurance services are within the scope of the HFMCE. However, “life insurance” is excluded from the HICP coverage. Premiums paid for life insurance, including pension-funding services, are regarded as savings and thus are not part of the HICP. “Life insurance” is excluded because it is not possible to separate out the implicit service charge for the insurance component from the implicit service charge for the investment component. Nonlife insurance services are, however, included in the HICP. Although for the HICP weights nonlife insurance services are measured with regard to implicit service charge, it is actually the gross insurance premiums that enter the index compilations, for practical reasons.

Weights

The HICP weights for published subindices are updated every year. The weights should represent the expenditure in the previous year and take account of preliminary national accounts data on the HFMCE. In practice, this means that compilers should estimate new subindex weights using the latest available data from the national accounts, normally preliminary estimates relating to the calendar year t – 2 (where t is the current year).

To obtain weights for lower levels of aggregation down to the most detailed product level, when national accounts do not provide data, other data sources such as household budget surveys, administrative data, retail sales, market research data, and data derived from scanner data can also be used. The observed year t – 2 expenditure may, or may not, be price updated between year t – 2 and year t – 1. The objective is to obtain the best possible estimate of the expenditure shares for the year t – 1. If goods and services are perfect complements (that is, there is no substitution between them and they are consumed in fixed proportions), the best approximation would be the price-updated weights. If goods and services are substitutes at such a rate that expenditure on one product relative to another is independent of the relative prices, the preferred approach would be not to price update. EU countries must carry out an annual review of weights to determine if there have been any important and sustained market developments, for example, the appearance of new significant products, and adjust the weights if necessary. These representative annual weights need to be adjusted with an appropriate price change to reflect the prices of December of the year t – 1.

Sampling

The HICP is a sample statistic that represents the change in prices, on average, over the target universe, which consists of all the transactions that fall within the scope of the HICP in the two periods being compared. Given the differences in the national markets and populations of the EU countries, it would not be possible to impose a uniform sampling structure across all countries. Nevertheless, certain minimum standards must be followed. Countries are required to ensure that:

  • Each COICOP subclass contains a sufficient number of elementary aggregates to represent the diversity of products within the category.

  • The number of prices recorded within each elementary aggregate is sufficient to represent the price movements in the population.

  • All product categories that form a significant part of total consumption expenditure (at least one part per thousand) must be covered in the sample.

The HICP sample must be designed in such a way as to ensure that it is representative of all transactions: the result is a target sample, which must be maintained to ensure that it remains valid in the face of continual market changes.

Prices

The prices used in the HICP should be purchasers’ prices, which are the prices actually paid by households. Product-related taxes such as the value-added tax and other sales taxes and excise duties are included and any subsidies deducted. Discounts such as sales prices should be taken into account. Interest payments or service charges added under credit arrangements, and any extra charges incurred as a result of failing to pay within the period specified at the time of purchase, are disregarded. Purchaser prices also include all unavoidable additional costs such as booking and delivery charges, which are typically associated with internet purchases. However, it is not always possible to observe the actual transaction price; so, in practice, it is usual to record the offer price or shelf price.

The HICP follows the acquisition approach to the recording of prices. In this approach, the acquisition is deemed to take place when the purchaser incurs a liability to the seller. In practical terms, for goods it is generally assumed that they are consumed at the time they are purchased, so prices for goods enter the HICP in the month that they are observed. However, many services (for example, fights or package holidays) are either purchased in advance of when they are consumed or they are consumed over a period of time (for example, season tickets for transport and sporting services). The prices of services are therefore recorded in the HICP in the first month that consumption of the service can commence.

Quality Adjustment

The HICP is designed to be a measure of pure price change for goods and services falling within its scope. This implies that the index should be calculated from identical or almost identical goods and services; that is, the priced products should remain of similar specification or quality over time. When a product offer in the sample is no longer available or no longer popular, it needs to be replaced, with possibly a quality adjustment, to keep the sample representative. Replacement product offers should be either the same or similar enough with regard to their characteristics that consumers perceive them to be equivalent. Where, from the consumer perspective, a replacement product offer is not seen as equivalent (that is, its characteristics differ from the replaced product offer), it is necessary to apply some type of quality adjustment to the price comparison.

Index Formulas

The HICP uses different formulas for aggregating prices and price indices. In order to compile an elementary price index, either unweighted or weighted index formulas (for example, multilateral methods) can be used depending on whether detailed weights are available. At the level of the elementary aggregate and above weights are available. At those levels, the HICP uses a Laspeyres-type formula. The HICP is a Laspeyres-type index obtained by annual chain linking 13-month (December to December) indices. December of each year is the overlap or link month in which the new and old basket of products are priced.

In the HICP, the weight reference period is defined as the year t – 1 and the price reference period is a month (December month of the previous year). Thus, in the HICP it is necessary to revalue the weights at the prices of the price reference period. This procedure is applied in order to take into account the relative price changes, which have occurred between the weight reference period and the price reference period.

Release, Timeliness, and Revisions

The HICP is produced and published each month according to a preannounced schedule—in general between 16 and 18 days after the end of the reference month. Each month, Eurostat also publishes an HICP flash estimate for the euro area and countries within that area. The flash estimate gives an early indication of what the HICP inflation is likely to be in the month in question. It is released on the last working day of the reference month, or shortly after.

The current index reference period of the HICP is 2015, and it is changed every 10 years unless there is a major methodological change that requires re-referencing.

HICPs are in principle revisable, but only in limited circumstances. In general, revisions have to be made if errors are found after the initial publication, and may also be made if the HICP is published as provisional and if new or improved basic information becomes available that is needed to improve its accuracy.

HICP Methodological Manual

The HICP methodological manual explains the agreed and preferred methods to be applied for the compilation of the HICP in detail. It also gives examples of good practice, provides index compilers with a practical guide, and serves as compendium of the HICP.1

Appendix 2 Classification of Individual Consumption According to Purpose 1999 (COICOP 1999)

Introduction

Classification of Individual Consumption According to Purpose (COICOP) 2018 has been endorsed by the United Nations Statistical Commission; however, many countries continue to use COICOP 1999. Countries should begin making plans to implement COICOP 2018 as part of their next consumer price index update and revision. While for some countries the next update may be within the next couple of years, for others, it will be longer. This appendix provides detailed explanations and breakdowns for COICOP 1999.

The objectives of this appendix are: (1) to maintain this reference for those countries who have not yet adopted COICOP 2018; (2) to allow countries the opportunity to better understand the differences between COICOP 2018 and COICOP 1999; and (3) to facilitate planning for the implementation of the new classification standard.

COICOP: Breakdown of Individual Consumption Expenditure of Households by Division and Group

01 Food and Nonalcoholic Beverages

01.1 Food

The food products classified here are those purchased for consumption at home. The group excludes food products sold for immediate consumption away from the home by hotels, restaurants, cafés, bars, kiosks, street vendors, automatic vending machines, and so on (11.1.1); cooked dishes prepared by restaurants for consumption off their premises (11.1.1); cooked dishes prepared by catering contractors whether collected by the customer or delivered to the customer’s home (11.1.1); and products sold specifically as pet foods (09.3.4).

01.1.1. Bread and Cereals (ND)1

  • Rice in all forms

  • Maize, wheat, barley, oats, rye, and other cereals in the form of grain, flour, or meal

  • Bread and other bakery products (crispbread, rusks, toasted bread, biscuits, gingerbread, wafers, waffles, crumpets, muffins, croissants, cakes, tarts, pies, quiches, pizzas, and so on)

  • Mixes and dough for the preparation of bakery products

  • Pasta products in all forms; couscous

  • Cereal preparations (cornflakes, oatflakes, and so on), and other cereal products (malt, malt flour, malt extract, potato starch, tapioca, sago, and other starches)

Includes: farinaceous-based products prepared with meat, fish, seafood, cheese, vegetables, or fruit.

Excludes: meat pies (01.1.2); fish pies (01.1.3); and sweet corn (01.1.7).

01.1.2. Meat (ND)

  • Fresh, chilled, or frozen meat of:

    • Bovine animals, swine, sheep, and goat

    • Horse, mule, donkey, camel, and the like

    • Poultry (chicken, duck, goose, turkey, and guinea fowl)

    • Hare, rabbit, and game (antelope, deer, boar, pheasant, grouse, pigeon, quail, and so on)

  • Fresh, chilled, or frozen edible offal

  • Dried, salted, or smoked meat, and edible offal (sausages, salami, bacon, ham, pâté, and so on)

  • Other preserved or processed meat and meat-based preparations (canned meat, meat extracts, meat juices, meat pies, and so on)

Includes: meat and edible offal of marine mammals (seals, walruses, whales, and so on) and exotic animals (kangaroo, ostrich, alligator, and so on); animals and poultry purchased live for consumption as food.

Excludes: land and sea snails (01.1.3); lard and other edible animal fats (01.1.5); and soups, broths, and stocks containing meat (01.1.9).

01.1.3. Fish and Seafood (ND)

  • Fresh, chilled, or frozen fish

  • Fresh, chilled, or frozen seafood (crustaceans, molluscs and other shellfish, and sea snails)

  • Dried, smoked, or salted fish, and seafood

  • Other preserved or processed fish and seafood and fish and seafood-based preparations (canned fish and seafood, caviar, and other hard roes, fish pies, and so on)

Includes: land crabs, land snails, and frogs; fish and seafood purchased live for consumption as food.

Excludes: soups, broths, and stocks containing fish and seafood (01.1.9).

01.1.4. Milk, Cheese, and Eggs (ND)

  • Raw milk; pasteurized or sterilized milk

  • Condensed, evaporated, or powdered milk

  • Yogurt, cream, milk-based desserts, milk-based beverages, and other similar milk-based products

  • Cheese and curd

  • Eggs and egg products made wholly from eggs

Includes: milk, cream, and yogurt containing sugar, cocoa, fruit, or favorings; dairy products not based on milk such as soya milk.

Excludes: butter and butter products (01.1.5).

01.1.5. Oils and Fats (ND)

Butter and butter products (butter oil, ghee, and so on) Margarine (including “diet” margarine) and other vegetable fats (including peanut butter)

Edible oils (olive oil, corn oil, sunflower seed oil, cottonseed oil, soybean oil, groundnut oil, walnut oil, and so on)

Edible animal fats (lard and so on)

Excludes: cod or halibut liver oil (06.1.1).

01.1.6. Fruit (ND)

  • Fresh, chilled, or frozen fruit

  • Dried fruit, fruit peel, fruit kernels, nuts, and edible seeds

  • Preserved fruit and fruit-based products

Includes: melons and watermelons.

Excludes: vegetables cultivated for their fruit such as aubergines, cucumbers, and tomatoes (01.1.7); jams, marmalades, compotes, jellies, fruit purées, and pastes (01.1.8); parts of plants preserved in sugar (01.1.8); and fruit juices and syrups (01.2.2).

01.1.7. Vegetables (ND)

  • Fresh, chilled, frozen, or dried vegetables cultivated for their leaves or stalks (asparagus, broccoli, cauliflower, endives, fennel, spinach, and so on), for their fruit (aubergines, cucumbers, courgettes, green peppers, pumpkins, tomatoes, and so on), and for their roots (beetroots, carrots, onions, parsnips, radishes, turnips, and so on)

  • Fresh or chilled potatoes and other tuber vegetables (manioc, arrowroot, cassava, sweet potatoes, and so on)

  • Preserved or processed vegetables and vegetable-based products

  • Products of tuber vegetables (flours, meals, flakes, purées, chips, and crisps) including frozen preparations such as chipped potatoes

Includes: olives; garlic; pulses; sweet corn; sea fennel and other edible seaweed; mushrooms and other edible fungi.

Excludes: potato starch, tapioca, sago, and other starches (01.1.1); soups, broths, and stocks containing vegetables (01.1.9); culinary herbs (parsley, rosemary, thyme, and so on) and spices (pepper, pimento, ginger, and so on) (01.1.9); and vegetable juices (01.2.2).

01.1.8. Sugar, Jam, Honey, Chocolate, and Confectionery (ND)

  • Cane or beet sugar, unrefined or refined, powdered, crystallized, or in lumps

  • Jams, marmalades, compotes, jellies, fruit purées, and pastes, natural, and artificial honey, maple syrup, molasses, and parts of plants preserved in sugar

  • Chocolate in bars or slabs, chewing gum, sweets, toffees, pastilles, and other confectionery products

  • Cocoa-based foods and cocoa-based dessert preparations

  • Edible ice, ice cream, and sorbet

Includes: artificial sugar substitutes.

Excludes: cocoa and chocolate-based powder (01.2.1).

01.1.9. Food Products N.E.C. (ND)

  • Salt, spices (pepper, pimento, ginger, and so on), culinary herbs (parsley, rosemary, thyme, and so on), sauces, condiments, seasonings (mustard, mayonnaise, ketchup, soy sauce, and so on), vinegar

  • Prepared baking powders, baker’s yeast, dessert preparations, soups, broths, stocks, culinary ingredients, and so on

  • Homogenized baby food and dietary preparations irrespective of the composition

Excludes: milk-based desserts (01.1.4); soya milk (01.1.4); artificial sugar substitutes (01.1.8); and cocoa-based dessert preparations (01.1.8).

01.2 Nonalcoholic Beverages

The nonalcoholic beverages classified here are those purchased for consumption at home. The group excludes nonalcoholic beverages sold for immediate consumption away from the home by hotels, restaurants, cafés, bars, kiosks, street vendors, automatic vending machines, and so on (11.1.1).

01.2.1 Coffee, Tea, and Cocoa (ND)

  • Coffee, whether or not decaffeinated, roasted or ground, including instant coffee

  • Tea, maté, and other plant products for infusions

  • Cocoa, whether or not sweetened, and chocolate-based powder

Includes: cocoa-based beverage preparations; coffee and tea substitutes; and extracts and essences of coffee and tea.

Excludes: chocolate in bars or slabs (01.1.8); cocoa-based food; and cocoa-based dessert preparations (01.1.8).

01.2.2 Mineral Waters, Soft Drinks, and Fruit and Vegetable Juices (ND)

  • Mineral or spring waters; all drinking water sold in containers

  • Soft drinks such as sodas, lemonades, and colas

  • Fruit and vegetable juices

  • Syrups and concentrates for the preparation of beverages

Excludes: nonalcoholic beverages which are generally alcoholic such as nonalcoholic beer (02.1).

02 Alcoholic Beverages, Tobacco, and Narcotics

02.1 Alcoholic Beverages

The alcoholic beverages classified here are those purchased for consumption at home. The group excludes alcoholic beverages sold for immediate consumption away from the home by hotels, restaurants, cafés, bars, kiosks, street vendors, automatic vending machines, and so on (11.1.1).

The beverages classified here include low or nonalcoholic beverages which are generally alcoholic such as nonalcoholic beer.

02.1.1. Spirits (ND)

  • Eaux-de-vie, liqueurs, and other spirits

Includes: mead; aperitifs other than wine-based aperitifs (02.1.2).

02.1.2. Wine (ND)

  • Wine, cider, and perry, including sake

  • Wine-based aperitifs, fortified wines, champagne, and other sparkling wines

02.1.3. Beer (ND)

  • All kinds of beer such as ale, lager, and porter

Includes: low-alcoholic beer and nonalcoholic beer; shandy.

02.2 Tobacco

This group covers all purchases of tobacco by households, including purchases of tobacco in restaurants, cafés, bars, service stations, and so on.

02.2.0. Tobacco (ND)

  • Cigarettes; cigarette tobacco and cigarette papers

  • Cigars, pipe tobacco, chewing tobacco, or snuff

Excludes: other smokers’ articles (12.3.2).

02.3 Narcotics

02.3.0. Narcotics (ND)

  • Marijuana, opium, cocaine, and their derivatives

  • Other vegetable-based narcotics such as cola nuts, betel leaves, and betel nuts

  • Other narcotics including chemicals and man-made drugs

03 Clothing and Footwear

03.1 Clothing

03.1.1. Clothing Materials (SD)

  • Clothing materials of natural fibers, of man-made fibers, and of their mixtures

Excludes: furnishing fabrics (05.2.0).

03.1.2. Garments (SD)

  • Garments for men, women, children (3–13 years) and infants (0–2 years), either ready-to-wear or made-to-measure, in all materials (including leather, furs, plastics, and rubber), for everyday wear, for sport or for work:

  • Capes, overcoats, raincoats, anoraks, parkas, blousons, jackets, trousers, waistcoats, suits, costumes, dresses, skirts, and so on

  • Shirts, blouses, pullovers, sweaters, cardigans, shorts, swimsuits, tracksuits, jogging suits, sweatshirts, T-shirts, leotards, and so on

  • Vests, underpants, socks, stockpiles, tights, petticoats, bras-sières, knickers, slips, girdles, corsets, body stockpiles, and so on

  • Pajamas, nightshirts, nightdresses, housecoats, dressing gowns, bathrobes, and so on

  • Baby clothes and babies’ booties made of fabric.

Excludes: articles of medical hosiery such as elasticated stockpiles (06.1.2); babies’ napkins (12.1.3).

03.1.3. Other Articles of Clothing and Clothing Accessories (SD)

  • Ties, handkerchiefs, scarves, squares, gloves, mittens, muffs, belts, braces, aprons, smocks, bibs, sleeve protectors, hats, caps, berets, bonnets, and so on

  • Sewing threads, knitting yarns, and accessories for making clothing such as buckles, buttons, press studs, zip fasteners, ribbons, laces, trimmings, and so on

Includes: gardening gloves and working gloves; crash helmets for motorcycles and bicycles.

Excludes: gloves and other articles made of rubber (05.6.1); pins, safety pins, sewing needles, knitting needles, thimbles (05.6.1); protective headgear for sports (09.3.2); other protective gear for sports such as life jackets, boxing gloves, body padding, belts, supports, and so on (09.3.2); paper handkerchiefs (12.1.3); watches, jewelry, cuff links, tiepins (12.3.1); walking sticks and canes, umbrellas and parasols, fans, and keyrings (12.3.2).

03.1.4. Cleaning, Repair, and Hire of Clothing (S)

  • Dry-cleaning, laundering, and dyeing of garments

  • Darning, mending, repair, and altering of garments Hire of garments

Includes: total value of the repair service (that is, both the cost of labor and the cost of materials are covered).

Excludes: materials, threads, accessories, and so on purchased by households with the intention of undertaking the repairs themselves (03.1.1) or (03.1.3); repair of household linen and other household textiles (05.2.0); dry-cleaning, laundering, dyeing, and hiring of household linen, and other household textiles (05.6.2).

03.2 Footwear

03.2.1. Shoes and Other Footwear (SD)

  • All footwear for men, women, children (3–13 years), and infants (0–2 years) including sports footwear suitable for everyday or leisure wear (shoes for jogging, cross-training, tennis, basketball, boating, and so on)

Includes: gaiters, leggings, and similar articles; shoelaces; parts of footwear, such as heels, soles, and so on, purchased by households with the intention of repairing footwear themselves.

Excludes: babies’ booties made of fabric (03.1.2); shoe trees, shoehorns and polishes, creams, and other shoe-cleaning articles (05.6.1); orthopedic footwear (06.1.3); game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on) (09.3.2); and shin guards, cricket pads, and other such protective apparel for sport (09.3.2).

03.2.2. Repair and Hire of Footwear (S)

  • Repair of footwear; shoe-cleaning services

  • Hire of footwear

Includes: total value of the repair service (that is, both the cost of labor and the cost of materials are covered).

Excludes: parts of footwear, such as heels, soles, and so on, purchased by households with the intention of undertaking the repair themselves (03.2.1); polishes, creams, and other shoe-cleaning articles (05.6.1); and repair (09.3.2) or hire (09.4.1) of game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on).

04 Housing, Water, Electricity, Gas, and Other Fuels

04.1 Actual Rentals for Housing

Rentals normally include payment for the use of the land on which the property stands, the dwelling occupied, the fixtures and fittings for heating, plumbing, lighting, and so on, and, in the case of a dwelling let furnished, the furniture.

Rentals also include payment for the use of a garage to provide parking in connection with the dwelling. The garage does not have to be physically contiguous to the dwelling, nor does it have to be leased from the same landlord.

Rentals do not include payment for the use of garages or parking spaces not providing parking in connection with the dwelling (07.2.4). Nor do they include charges for water supply (04.4.1); refuse collection (04.4.2) and sewage collection (04.4.3); coproprietor charges for caretaking, gardening, stairwell cleaning, heating and lighting, maintenance of lifts and refuse disposal chutes, and so on in multi-occupied buildings (04.4.4); charges for electricity (04.5.1) and gas (04.5.2); and charges for heating and hot water supplied by district heating plants (04.5.5).

04.1.1. Actual Rentals Paid by Tenants (S)

  • Rentals actually paid by tenants or subtenants occupying unfurnished or furnished premises as their main residence

Includes: payments by households occupying a room in a hotel or boarding house as their main residence.

Excludes: accommodation services of educational establishments and hostels (11.2.0) and of retirement homes for elderly persons (12.4.0).

04.1.2. Other Actual Rentals (S)

  • Rentals actually paid for secondary residences

Excludes: accommodation services of holiday villages and holiday centers (11.2.0).

04.2 Imputed Rentals for Housing

For coverage see note to (04.1).

04.2.1 Imputed Rentals of Owner-Occupiers (S) Imputed rentals of owners occupying their main residence

04.2.2. Other Imputed Rentals (S)

  • Imputed rentals for secondary residences

  • Imputed rentals of households paying a reduced rental or housed free

04.3 Maintenance and Repair of the Dwelling

Maintenance and repair of dwellings are distinguished by two features: first, they are activities that have to be undertaken regularly in order to maintain the dwelling in good working order; second, they do not change the dwelling’s performance, capacity or expected service life.

There are two types of maintenance and repair of dwellings: those which are minor, such as interior decoration and repairs to fittings, and which are commonly carried out by both tenants and owners; and those which are major, such as replastering walls or repairing roofs, and which are carried out by owners only.

Only expenditures which tenants and owner-occupiers incur on materials and services for minor maintenance and repair are part of individual consumption expenditure of households. Expenditures which owner-occupiers incur on materials and services for major maintenance and repair are not part of individual consumption expenditure of households.

Purchases of materials made by tenants or owner-occupiers with the intention of undertaking the maintenance or repair themselves should be shown under (04.3.1). If tenants or owner-occupiers pay an enterprise to carry out the maintenance or repair, the total value of the service, including the costs of the materials used, should be shown under (04.3.2).

04.3.1. Materials for the Maintenance and Repair of the Dwelling (ND)

  • Products and materials, such as paints and varnishes, renderings, wallpapers, fabric wall coverings, window panes, plaster, cement, putty, wallpaper pastes, and so on, purchased for minor maintenance and repair of the dwelling

Includes: small plumbing items (pipes, taps, joints, and so on), surfacing materials (floorboards, ceramic tiles, and so on), and brushes and scrapers for paint, varnish, and wallpaper.

Excludes: fitted carpets and linoleum (05.1.2); hand tools, door fittings, power sockets, wiring flex, and lamp bulbs (05.5.2); brooms, scrubbing brushes, dusting brushes, and cleaning products (05.6.1); products, materials, and fixtures used for major maintenance and repair (intermediate consumption) or for extension and conversion of the dwelling (capital formation).

04.3.2. Services for the Maintenance and Repair of the Dwelling (S)

  • Services of plumbers, electricians, carpenters, glaziers, painters, decorators, floor polishers, and so on engaged for minor maintenance and repair of the dwelling

Includes: total value of the service (that is, both the cost of labor and the cost of materials are covered).

Excludes: separate purchases of materials made by households with the intention of undertaking the maintenance or repair themselves (04.3.1); services engaged for major maintenance and repair (intermediate consumption) or for extension and conversion of the dwelling (capital formation).

04.4 Water Supply and Miscellaneous Services Relating to the Dwelling

04.4.1. Water Supply (ND)

  • Water supply

Includes: associated expenditure such as hire of meters, reading of meters, standing charges, and so on.

Excludes: drinking water sold in bottles or containers (01.2.2); hot water or steam purchased from district heating plants (04.5.5).

04.4.2. Refuse Collection (S)

  • Refuse collection and disposal

04.4.3. Sewage Collection (S)

  • Sewage collection and disposal

04.4.4. Other Services Relating to the Dwelling N.E.C. (S)

  • Coproprietor charges for caretaking, gardening, stairwell cleaning, heating and lighting, maintenance of lifts and refuse disposal chutes, and so on in multi-occupied buildings

  • Security services

  • Snow removal and chimney sweeping

Excludes: household services such as window cleaning, disinfecting, fumigation, and pest extermination (05.6.2); bodyguards (12.7.0).

04.5 Electricity, Gas, and Other Fuels

04.5.1. Electricity (ND)

  • Electricity

Includes: associated expenditure such as hire of meters, reading of meters, standing charges, and so on.

04.5.2. Gas (ND)

  • Town gas and natural gas

  • Liquefied hydrocarbons (butane, propane, and so on)

Includes: associated expenditure such as hire of meters, reading of meters, storage containers, standing charges, and so on.

04.5.3. Liquid Fuels (ND)

  • Domestic heating and lighting oils

04.5.4. Solid Fuels (ND)

  • Coal, coke, briquettes, firewood, charcoal, peat, and the like

04.5.5. Heat Energy (ND)

  • Hot water and steam purchased from district heating plants

Includes: associated expenditure such as hire of meters, reading of meters, standing charges, and so on; ice used for cooling and refrigeration purposes.

05 Furnishings, Household Equipment, and Routine Household Maintenance

05.1 Furniture and Furnishings, Carpets, and Other Floor Coverings

05.1.1. Furniture and Furnishings (D)

  • Beds, sofas, couches, tables, chairs, cupboards, chests of drawers, and bookshelves

  • Lighting equipment such as ceiling lights, standard lamps, globe lights, and bedside lamps

  • Pictures, sculptures, engravings, tapestries, and other art objects including reproductions of works of art and other ornaments

  • Screens, folding partitions, and other furniture and fixtures

Includes: delivery and installation when applicable; base mattresses, mattresses, tatamis; bathroom cabinets; baby furniture such as cradles, high chairs, and playpens; blinds; camping and garden furniture; and mirrors, candleholders, and candlesticks.

Excludes: bedding and sunshades (05.2.0); safes (05.3.1); ornamental glass and ceramic articles (05.4.0); clocks (12.3.1); wall thermometers and barometers (12.3.2); carrycots and pushchairs (12.3.2); and works of art and antique furniture acquired primarily as stores of value (capital formation).

05.1.2. Carpets and Other Floor Coverings (D)

  • Loose carpets, fitted carpets, linoleum, and other such floor coverings

Includes: laying of floor coverings

Excludes: bathroom mats, rush mats, and doormats (05.2.0); antique floor coverings acquired primarily as stores of value (capital formation).

05.1.3. Repair of Furniture, Furnishings, and Floor Coverings (S)

  • Repair of furniture, furnishings, and floor coverings

Includes: total value of the service (that is, both the cost of labor and the cost of materials are covered); restoration of works of art, antique furniture, and antique floor coverings other than those acquired primarily as stores of value (capital formation).

Excludes: separate purchases of materials made by households with the intention of undertaking the repair themselves (05.1.1) or (05.1.2); dry-cleaning of carpets (05.6.2).

05.2 Household Textiles

05.2.0. Household Textiles (SD)

  • Furnishing fabrics, curtain material, curtains, double curtains, awnings, door curtains, and fabric blinds

  • Bedding such as futons, pillows, bolsters, and hammocks

  • Bed linen such as sheets, pillowcases, blankets, traveling rugs, plaids, eiderdowns, counterpanes, and mosquito nets

  • Table linen and bathroom linen such as tablecloths, table napkins, towels, and face cloths

  • Other household textiles such as shopping bags, laundry bags, shoe bags, covers for clothes and furniture, flags, sunshades, and so on

Repair of such articles

Includes: cloth bought by the piece; oilcloth; bathroom mats, rush mats, and doormats.

Excludes: fabric wall coverings (04.3.1); tapestries (05.1.1); floor coverings such as carpets and fitted carpets (05.1.2); electric blankets (05.3.2); covers for motor cars, motorcycles, and so on (07.2.1); and air mattresses and sleeping bags (09.3.2).

05.3 Household Appliances

05.3.1. Major Household Appliances Whether Electric or Not (D)

  • Refrigerators, freezers, and fridge freezers

  • Washing machines, dryers, drying cabinets, dishwashers, ironing, and pressing machines

  • Cookers, spit roasters, hobs, ranges, ovens, and microwave ovens

  • Air-conditioners, humidifiers, space heaters, water heaters, ventilators, and extractor hoods

  • Vacuum cleaners, steam-cleaning machines, carpet shampooing machines, and machines for scrubbing, waxing, and polishing floors

  • Other major household appliances such as safes, sewing machines, knitting machines, water softeners, and so on

Includes: delivery and installation of the appliances when applicable.

Excludes: such appliances that are built into the structure of the building (capital formation).

05.3.2. Small Electric Household Appliances (SD)

  • Coffee mills, coffee makers, juice extractors, can openers, food mixers, deep fryers, meat grills, knives, toasters, ice cream makers, sorbet makers, yogurt makers, hotplates, irons, kettles, fans, electric blankets, and so on

Excludes: small nonelectric household articles and kitchen utensils (05.4.0); household scales (05.4.0); personal weighing machines and baby scales (12.1.3).

05.3.3. Repair of Household Appliances (S)

  • Repair of household appliances

Includes: total value of the service (that is, both the cost of labor and the cost of materials are covered); charges for the leasing or rental of major household appliances.

Excludes: separate purchases of materials made by households with the intention of undertaking the repair themselves (05.3.1) or (05.3.2).

05.4 Glassware, Tableware, and Household Utensils

05.4.0. Glassware, Tableware, and Household Utensils (SD)

  • Glassware, crystal ware, ceramic ware, and chinaware of the kind used for table, kitchen, bathroom, toilet, office, and indoor decoration

  • Cutlery, flatware, and silverware

  • Nonelectric kitchen utensils of all materials such as saucepans, stewpots, pressure cookers, frying pans, coffee mills, purée makers, mincers, hotplates, household scales, and other such mechanical devices

  • Nonelectric household articles of all materials such as containers for bread, coffee, spices, and so on, waste bins, waste-paper baskets, laundry baskets, portable money boxes and strongboxes, towel rails, bottle racks, irons and ironing boards, letter boxes, feeding bottles, thermos flasks, and iceboxes

Repair of such articles

Excludes: lighting equipment (05.1.1); electric household appliances (05.3.1) or (05.3.2); cardboard tableware (05.6.1); personal weighing machines and baby scales (12.1.3); ashtrays (12.3.2).

05.5 Tools and Equipment for House and Garden

05.5.1. Major Tools and Equipment (D)

  • Motorized tools and equipment such as electric drills, saws, sanders and hedge cutters, garden tractors, lawn-mowers, cultivators, chainsaws, and water pumps

Repair of such articles

Includes: charges for the leasing or rental of do-it-yourself machinery and equipment.

05.5.2. Small Tools and Miscellaneous Accessories (SD)

  • Hand tools such as saws, hammers, screwdrivers, wrenches, spanners, pliers, trimming knives, rasps, and files

  • Garden tools such as wheelbarrows, watering cans, hoses, spades, shovels, rakes, forks, scythes, sickles, and secateurs

  • Ladders and steps

  • Door fittings (hinges, handles, and locks), fittings for radiators and fireplaces, and other metal articles for the house (curtain rails, carpet rods, hooks, and so on) or for the garden (chains, grids, stakes, and hoop segments for fencing and bordering)

  • Small electric accessories such as power sockets, switches, wiring flex, electric bulbs, fluorescent lighting tubes, torches, flashlights, hand lamps, electric batteries for general use, bells, and alarms

Repair of such articles

05.6 Goods and Services for Routine Household Maintenance

05.6.1. Nondurable Household Goods (ND)

  • Cleaning and maintenance products such as soaps, washing powders, washing liquids, scouring powders, detergents, disinfectant bleaches, softeners, conditioners, window-cleaning products, waxes, polishes, dyes, unblocking agents, disinfectants, insecticides, pesticides, fungicides, and distilled water

  • Articles for cleaning such as brooms, scrubbing brushes, dustpans and dust brushes, dusters, tea towels, floorcloths, household sponges, scourers, steel wool, and chamois leathers

  • Paper products such as filters, tablecloths and table napkins, kitchen paper, vacuum cleaner bags, and cardboard tableware, including aluminum foil and plastic bin liners

  • Other nondurable household articles such as matches, candles, lamp wicks, methylated spirits, clothes-pegs, clothes hangers, pins, safety pins, sewing needles, knitting needles, thimbles, nails, screws, nuts and bolts, tacks, washers, glues and adhesive tapes for household use, string, twine, and rubber gloves

Includes: polishes, creams, and other shoe-cleaning articles; fre extinguishers for households.

Excludes: brushes and scrapers for paint, varnish, and wallpaper (04.3.1); fire extinguishers for transport equipment (07.2.1); products specifically for the cleaning and maintenance of transport equipment such as paints, chrome cleaners, sealing compounds, and bodywork polishes (07.2.1); horticultural products for the upkeep of ornamental gardens (09.3.3); paper handkerchiefs, toilet paper, toilet soaps, toilet sponges, and other products for personal hygiene (12.1.3); cigarette, cigar, and pipe lighters, and lighter fuel (12.3.2).

05.6.2. Domestic Services and Household Services (S)

  • Domestic services supplied by paid staff employed in private services such as butlers, cooks, maids, drivers, gardeners, governesses, secretaries, tutors, and au pairs

  • Similar services, including babysitting and housework, supplied by enterprises or self-employed persons

  • Household services such as window cleaning, disinfecting, fumigation, and pest extermination

  • Dry-cleaning, laundering, and dyeing of household linen, household textiles, and carpets

  • Hire of furniture, furnishings, carpets, household equipment, and household linen

Excludes: dry-cleaning, laundering, and dyeing of garments (03.1.4); refuse collection (04.4.2); sewerage collection (04.4.3); coproprietor charges for caretaking, gardening, stairwell cleaning, heating and lighting, maintenance of lifts and refuse disposal chutes, and so on in multi-occupied buildings (04.4.4); security services (04.4.4); snow removal and chimney sweeping (04.4.4); removal and storage services (07.3.6); services of wet-nurses, crèches, day care centers, and other child-minding facilities (12.4.0); and bodyguards (12.7.0).

06 Health

This division also includes health services purchased from school and university health centers.

06.1 Medical Products, Appliances, and Equipment

This group covers medicaments, prostheses, medical appliances and equipment, and other health-related products purchased by individuals or households, either with or without a prescription, usually from dispensing chemists, pharmacists, or medical equipment suppliers. They are intended for consumption or use outside a health facility or institution. Such products supplied directly to outpatients by medical, dental, and paramedical practitioners or to inpatients by hospitals and the like are included in outpatient services (06.2) or hospital services (06.3).

06.1.1. Pharmaceutical Products (ND)

  • Medicinal preparations, medicinal drugs, patent medicines, serums and vaccines, vitamins and minerals, cod liver oil and halibut liver oil, and oral contraceptives

Excludes: veterinary products (09.3.4); articles for personal hygiene such as medicinal soaps (12.1.3).

06.1.2. Other Medical Products (ND)

  • Clinical thermometers, adhesive and nonadhesive bandages, hypodermic syringes, first aid kits, hot-water bottles and ice bags, medical hosiery items such as elasticated stockpiles and knee supports, pregnancy tests, condoms, and other mechanical contraceptive devices

06.1.3. Therapeutic Appliances and Equipment (D)

  • Corrective eyeglasses and contact lenses, hearing aids, glass eyes, artificial limbs and other prosthetic devices, orthopedic braces and supports, orthopedic footwear, surgical belts, trusses and supports, neck braces, medical massage equipment and health lamps, powered and unpowered wheelchairs and invalid carriages, “special” beds, crutches, electronic and other devices for monitoring blood pressure, and so on

Repair of such articles

Includes: dentures but not fitting costs.

Excludes: hire of therapeutic equipment (06.2.3); protective goggles, belts, and supports for sport (09.3.2); and sunglasses not fitted with corrective lenses (12.3.2).

06.2 Outpatient Services

This group covers medical, dental, and paramedical services delivered to outpatients by medical, dental, and paramedical practitioners and auxiliaries. The services may be delivered at home, in individual or group consulting facilities, dispensaries or the outpatient clinics of hospitals, and the like.

Outpatient services include the medicaments, prostheses, medical appliances and equipment, and other health-related products supplied directly to outpatients by medical, dental, and paramedical practitioners and auxiliaries.

Medical, dental, and paramedical services provided to inpatients by hospitals and the like are included in hospital services (06.3).

06.2.1. Medical Services (S)

  • Consultations of physicians in general or specialist practice

Includes: services of orthodontic specialists.

Excludes: services of medical analysis laboratories and X-ray centers (06.2.3); services of practitioners of traditional medicine (06.2.3).

06.2.2. Dental Services (S)

  • Services of dentists, oral hygienists, and other dental auxiliaries

Includes: fitting costs of dentures.

Excludes: dentures (06.1.3); services of orthodontic specialists (06.2.1); and services of medical analysis laboratories and X-ray centers (06.2.3).

06.2.3. Paramedical Services (S)

  • Services of medical analysis laboratories and X-ray centers

  • Services of freelance nurses and midwives

  • Services of freelance acupuncturists, chiropractors, optometrists, physiotherapists, speech therapists, and so on

  • Medically prescribed corrective-gymnastic therapy

  • Outpatient thermal bath or seawater treatments

  • Ambulance services

  • Hire of therapeutic equipment

Includes: services of practitioners of traditional medicine.

06.3 Hospital Services

Hospitalization is defined as occurring when a patient is accommodated in a hospital for the duration of the treatment. Hospital day care and home-based hospital treatment are included as are hospices for terminally ill persons.

This group covers the services of general and specialist hospitals, the services of medical centers, maternity centers, nursing homes, and convalescent homes which chiefly provide inpatient health care, the services of institutions serving old people in which medical monitoring is an essential component and the services of rehabilitation centers providing inpatient health care and rehabilitative therapy where the objective is to treat the patient rather than to provide long-term support.

Hospitals are defined as institutions which offer inpatient care under the direct supervision of qualified medical doctors. Medical centers, maternity centers, nursing homes, and convalescent homes also provide inpatient care but their services are supervised and frequently delivered by staff of lower qualification than medical doctors.

This group does not cover the services of facilities, such as surgeries, clinics, and dispensaries, devoted exclusively to outpatient care (06.2). Nor does it include the services of retirement homes for elderly persons, institutions for disabled persons, and rehabilitation centers providing primarily long-term support (12.4).

06.3.0. Hospital Services (S)

Hospital services comprise the provision of the following services to hospital inpatients:

  • Basic services: administration; accommodation; food and drink; supervision and care by nonspecialist staff (nursing auxiliaries); first aid and resuscitation; ambulance transport; provision of medicines and other pharmaceutical products; and provision of therapeutic appliances and equipment

  • Medical services: services of physicians in general or specialist practice, of surgeons, and of dentists; medical analyses and X-rays; and paramedical services such as those of nurses, midwives, chiropractors, optometrists, physiotherapists, speech therapists, and so on.

07 Transport

07.1 Purchase of Vehicles

Purchases of recreational vehicles such as camper vans, caravans, trailers, airplanes, and boats are covered by (09.2.1).

07.1.1. Motor Cars (D)

  • Motor cars, passenger vans, station wagons, estate cars, and the like with either two-wheel drive or four-wheel drive

Excludes: invalid carriages (06.1.3); camper vans (09.2.1); and golf carts (09.2.1).

07.1.2. Motor Cycles (D)

  • Motorcycles of all types, scooters, and powered bicycles

Includes: sidecars; snowmobiles.

Excludes: invalid carriages (06.1.3); golf carts (09.2.1).

07.1.3. Bicycles (D)

  • Bicycles and tricycles of all types

Includes: rickshaws.

Excludes: toy bicycles and tricycles (09.3.1).

07.1.4. Animal-Drawn Vehicles (D)

  • Animal-drawn vehicles

Includes: animals required to draw the vehicles and related equipment (yokes, collars, harnesses, bridles, reins, and so on).

Excludes: horses and ponies, horse- or pony-drawn vehicles, and related equipment purchased for recreational purposes (09.2.1).

07.2 Operation of Personal Transport Equipment

Purchases of spare parts, accessories, or lubricants made by households with the intention of undertaking the maintenance, repair, or intervention themselves should be shown under (07.2.1) or (07.2.2). If households pay an enterprise to carry out the maintenance, repair, or fitting, the total value of the service, including the costs of the materials used, should be shown under (07.2.3).

07.2.1. Spare Parts and Accessories for Personal Transport Equipment (SD)

  • Tires (new, used, or retreaded), inner tubes, spark plugs, batteries, shock absorbers, filters, pumps, and other spare parts or accessories for personal transport equipment

Includes: fire extinguishers for transport equipment; products specifically for the cleaning and maintenance of transport equipment such as paints, chrome cleaners, sealing compounds, and bodywork polishes; and covers for motor cars, motorcycles, and so on.

Excludes: crash helmets for motorcycles and bicycles (03.1.3); nonspecific products for cleaning and maintenance such as distilled water, household sponges, chamois leathers, detergents, and so on (05.6.1); charges for the fitting of spare parts and accessories and for the painting, washing, and polishing of bodywork (07.2.3); radiotelephones (08.2.0); car radios (09.1.1); and baby seats for cars (12.3.2).

07.2.2. Fuels and Lubricants for Personal Transport Equipment (ND)

  • Petrol and other fuels such as diesel, liquid petroleum gas, alcohol, and two-stroke mixtures

  • Lubricants, brake and transmission fluids, coolants, and additives

Includes: fuel for major tools and equipment covered under (05.5.1) and recreational vehicles covered under (09.2.1).

Excludes: charges for oil changes and greasing (07.2.3).

07.2.3. Maintenance and Repair of Personal Transport Equipment (S)

  • Services purchased for the maintenance and repair of personal transport equipment such as fitting of parts and accessories, wheel balancing, technical inspection, breakdown services, oil changes, greasing, and washing

Includes: total value of the service (that is both the cost of labor and the cost of materials are covered).

Excludes: separate purchases of spare parts, accessories, or lubricants made by households with the intention of undertaking the maintenance or repair themselves (07.2.1) or (07.2.2); roadworthiness tests (07.2.4).

07.2.4. Other Services in Respect of Personal Transport Equipment (S)

  • Hire of garages or parking spaces not providing parking in connection with the dwelling

  • Toll facilities (bridges, tunnels, shuttle ferries, motorways) and parking meters

  • Driving lessons, driving tests, and driving licenses

  • Roadworthiness tests

  • Hire of personal transport equipment without drivers

Excludes: hire of a car with driver (07.3.2); service charges for insurance in respect of personal transport equipment (12.5.4).

07.3 Transport Services

Purchases of transport services are generally classified by mode of transport. When a ticket covers two or more modes of transport—for example, intraurban bus and underground or interurban train and ferry—and the expenditure cannot be apportioned between them, then such purchases should be classified in 07.3.5.

Costs of meals, snacks, drinks, refreshments, or accommodation services have to be included if covered by the fare and not separately priced. If separately priced, these costs have to be classified in Division 11.

School transport services are included, but ambulance services are excluded (06.2.3).

07.3.1. Passenger Transport by Railway (S)

  • Transport of individuals and groups of persons and luggage by train, tram, and underground

Includes: transport of private vehicles.

Excludes: funicular transport (07.3.6).

07.3.2. Passenger Transport by Road (S)

  • Transport of individuals and groups of persons and luggage by bus, coach, taxi, and hired car with driver

07.3.3. Passenger Transport by Air (S)

  • Transport of individuals and groups of persons and luggage by airplane and helicopter

07.3.4. Passenger Transport by Sea and Inland Waterway (S)

  • Transport of individuals and groups of persons and luggage by ship, boat, ferry, hovercraft, and hydrofoil

Includes: transport of private vehicles.

07.3.5. Combined Passenger Transport (S)

  • Transport of individuals and groups of persons and luggage by two or more modes of transport when the expenditure cannot be apportioned between them

Includes: transport of private vehicles. Excludes: package holidays (09.6.0).

07.3.6. Other Purchased Transport Services (S)

  • Funicular, cable car, and chairlift transport

  • Removal and storage services

  • Services of porters and left-luggage and luggage-forwarding offices

  • Travel agents’ commissions, if separately priced

Excludes: cable car and chairlift transport at ski resorts and holiday centers (09.4.1).

08 Communication

08.1 Postal Services

08.1.0. Postal Services (S)

  • Payments for the delivery of letters, postcards, and parcels

  • Private mail and parcel delivery

Includes: all purchases of new postage stamps, prefranked postcards, and aerograms.

Excludes: purchase of used or canceled postage stamps (09.3.1); financial services of post offices (12.6.2).

08.2 Telephone and Telefax Equipment

08.2.0. Telephone and Telefax Equipment (D)

  • Purchases of telephones, radiotelephones, telefax machines, telephone-answering machines, and telephone loudspeakers

  • Repair of such equipment

Excludes: telefax and telephone-answering facilities provided by personal computers (09.1.3).

08.3 Telephone and Telefax Services

08.3.0. Telephone and Telefax Services (S)

  • Installation and subscription costs of personal telephone equipment

  • Telephone calls from a private line or from a public line (public telephone box, post office cabin, and so on); telephone calls from hotels, cafés, restaurants, and the like

  • Telegraphy, telex, and telefax services

  • Information transmission services; internet connection services

  • Hire of telephones, telefax machines, telephone-answering machines, and telephone loudspeakers

Includes: radiotelephony, radiotelegraphy, and radiotelex services.

09 Recreation and Culture

09.1 Audiovisual, Photographic, and Information Processing Equipment

09.1.1. Equipment for the Reception, Recording, and Reproduction of Sound and Pictures (D)

  • Television sets, video cassette players and recorders, and television aerials of all types

  • Radio sets, car radios, radio clocks, two-way radios, amateur radio receivers, and transmitters

  • Gramophones, tape players and recorders, cassette players and recorders, CD players, personal stereos, stereo systems and their constituent units (turntables, tuners, amplifiers, speakers, and so on), microphones, and earphones

Excludes: video cameras, camcorders, and sound-recording cameras (09.1.2).

09.1.2. Photographic and Cinematographic Equipment and Optical Instruments (D)

  • Still cameras, movie cameras and sound-recording cameras, video cameras and camcorders, film and slide projectors, enlargers and film processing equipment, and accessories (screens, viewers, lenses, flash attachments, filters, exposure meters, and so on)

  • Binoculars, microscopes, telescopes, and compasses

09.1.3. Information Processing Equipment (D)

  • Personal computers, visual display units, printers, and miscellaneous accessories accompanying them; computer software packages such as operating systems, applications, languages, and so on

  • Calculators, including pocket calculators

  • Typewriters and word processors

Includes: telefax and telephone-answering facilities provided by personal computers.

Excludes: prerecorded diskettes and CD-ROMs containing books, dictionaries, encyclopedias, foreign language trainers, multimedia presentations, and so on in the form of software (09.1.4); video game software (09.3.1); video game computers that plug into a television set (09.3.1); typewriter ribbons (09.5.4); toner and ink cartridges (09.5.4); and slide rules (09.5.4).

09.1.4. Recording Media (SD)

  • Records and compact discs

  • Prerecorded tapes, cassettes, video cassettes, diskettes and CD-ROMs for tape recorders, cassette recorders, video recorders, and personal computers

  • Unrecorded tapes, cassettes, video cassettes, diskettes and CD-ROMs for tape recorders, cassette recorders, video recorders, and personal computers

  • Unexposed films, cartridges, and disks for photographic and cinematographic use

Includes: prerecorded tapes and compact discs of novels, plays, poetry, and so on; prerecorded diskettes and CD-ROMs containing books, dictionaries, encyclopedias, foreign language trainers, multimedia presentations, and so on in the form of software; photographic supplies such as paper and flashbulbs; and unexposed film the price of which includes the cost of processing without separately identifying it.

Excludes: batteries (05.5.2); computer software packages such as operating systems, applications, languages, and so on (09.1.3); video game software, video game cassettes, and video game CD-ROMs (09.3.1); and development of films and printing of photographs (09.4.2).

09.1.5. Repair of Audiovisual, Photographic, and Information Processing Equipment (S)

  • Repair of audiovisual, photographic, and information processing equipment

Includes: total value of the service (that is, both the cost of labor and the cost of materials are covered).

Excludes: separate purchases of materials made by households with the intention of undertaking the repair themselves (09.1.1), (09.1.2), or (09.1.3).

09.2 Other Major Durables for Recreation and Culture

09.2.1. Major Durables for Outdoor Recreation (D)

  • Camper vans, caravans, and trailers

  • Airplanes, microlight aircraft, gliders, hang gliders, and hot-air balloons

  • Boats, outboard motors, sails, rigging, and superstructures Horses and ponies, horse- or pony-drawn vehicles, and related equipment (harnesses, bridles, reins, saddles, and so on)

  • Major items for games and sport such as canoes, kayaks, windsurfing boards, sea-diving equipment, and golf carts

Includes: fitting out of boats, camper vans, caravans, and so on.

Excludes: horses and ponies, horse- or pony-drawn vehicles, and related equipment purchased for personal transport (07.1.4); inflatable boats, rafts, and swimming pools for children and the beach (09.3.2).

09.2.2. Musical Instruments and Major Durables for Indoor Recreation (D)

  • Musical instruments of all sizes, including electronic musical instruments, such as pianos, organs, violins, guitars, drums, trumpets, clarinets, flutes, recorders, harmonicas, and so on

  • Billiard tables, ping-pong tables, pinball machines, gaming machines, and so on

Excludes: toys (09.3.1).

09.2.3. Maintenance and Repair of Other Major Durables for Recreation and Culture (S)

  • Maintenance and repair of other major durables for recreation and culture

Includes: total value of the service (that is, both the cost of labor and the cost of materials are covered); laying up for winter of boats, camper vans, caravans, and so on; hangar services for private planes; marina services for boats; and veterinary and other services (stabling, feeding, farriery, and so on) for horses and ponies purchased for recreational purposes.

Excludes: fuel for recreational vehicles (07.2.2); separate purchases of materials made by households with the intention of undertaking the maintenance or repair themselves (09.2.1) or (09.2.2); and veterinary and other services for pets (09.3.5).

09.3 Other Recreational Items and Equipment, Gardens, and Pets

09.3.1. Games, Toys, and Hobbies (SD)

  • Card games, parlor games, chess sets, and the like Toys of all kinds including dolls, soft toys, toy cars and trains, toy bicycles and tricycles, toy construction sets, puzzles, plasticine, electronic games, masks, disguises, jokes, novelties, fireworks and rockets, festoons, and Christmas tree decorations

  • Stamp-collecting requisites (used or canceled postage stamps, stamp albums, and so on), other items for collections (coins, medals, minerals, zoological and botanical specimens, and so on), and other tools and articles n.e.c. for hobbies

Includes: video game software; video game computers that plug into a television set; video game cassettes, and video game CD-ROMs.

Excludes: collectors’ items falling into the category of works of art or antiques (05.1.1); unused postage stamps (08.1.0); Christmas trees (09.3.3); and children’s scrap-books (09.5.1).

09.3.2. Equipment for Sport, Camping, and Open-Air Recreation (SD)

  • Gymnastic, physical education, and sport equipment such as balls, shuttlecocks, nets, rackets, bats, skis, golf clubs, foils, sabers, poles, weights, discuses, javelins, dumbbells, chest expanders, and other body-building equipment

  • Parachutes and other skydiving equipment

  • Firearms and ammunition for hunting, sport, and personal protection

  • Fishing rods and other equipment for fishing

  • Equipment for beach and open-air games, such as bowls, croquet, frisbee, volleyball, and inflatable boats, rafts, and swimming pools

  • Camping equipment such as tents and accessories, sleeping bags, backpacks, air mattresses and inflating pumps, camping stoves, and barbecues

Repair of such articles

Includes: game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice-skates, rollers, spikes, studs, and so on); protective headgear for sports; other protective gear for sports such as life jackets, boxing gloves, body padding, shin guards, goggles, belts, supports, and so on.

Excludes: crash helmets for motorcycles and bicycles (03.1.3); camping and garden furniture (05.1.1).

09.3.3. Gardens, Plants, and Flowers (ND)

  • Natural or artificial flowers and foliage, plants, shrubs, bulbs, tubers, seeds, fertilizers, composts, garden peat, turf for lawns, specially treated soils for ornamental gardens, horticultural preparations, pots, and pot holders

Includes: natural and artificial Christmas trees; delivery charges for flowers and plants.

Excludes: gardening gloves (03.1.3); gardening services (04.4.4) or (05.6.2); gardening equipment (05.5.1); gardening tools (05.5.2); and insecticides and pesticides for household use (05.6.1).

09.3.4. Pets and Related Products (ND)

  • Pets, pet foods, veterinary and grooming products for pets, collars, leashes, kennels, birdcages, fish tanks, cat litter, and so on

Excludes: horses and ponies (07.1.4) or (09.2.1); veterinary services (09.3.5).

09.3.5. Veterinary and Other Services for Pets (S)

  • Veterinary and other services for pets such as grooming, boarding, tattooing, and training

Excludes: veterinary and other services (stabling, farriery, and so on) for horses and ponies purchased for recreational purposes (09.2.3).

09.4 Recreational and Cultural Services

09.4.1. Recreational and Sporting Services (S)

Services provided by:

  • Sports stadiums, horse-racing courses, motor-racing circuits, velodromes, and so on

  • Skating rinks, swimming pools, golf courses, gymnasia, fitness centers, tennis courts, squash courts, and bowling alleys

  • Fairgrounds and amusement parks

  • Roundabouts, seesaws, and other playground facilities for children

  • Pinball machines and other games for adults other than games of chance

  • Ski slopes, ski lifts, and the like

  • Hire of equipment and accessories for sport and recreation, such as airplanes, boats, horses, skiing, and camping equipment

  • Out-of-school individual or group lessons in bridge, chess, aerobics, dancing, music, skating, skiing, swimming, or other pastimes

  • Services of mountain guides, tour guides, and so on

  • Navigational aid services for boating

Includes: hire of game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on).

Excludes: cable car and chairlift transport not at ski resorts or holiday centers (07.3.6).

09.4.2. Cultural Services (S) Services provided by:

  • Cinemas, theatres, opera houses, concert halls, music halls, circuses, and sound and light shows

  • Museums, libraries, art galleries, and exhibitions

  • Historic monuments, national parks, zoological and botanical gardens, and aquaria

  • Hire of equipment and accessories for culture, such as television sets, video cassettes, and so on

  • Television and radio broadcasting, in particular license fees for television equipment and subscriptions to television networks

  • Services of photographers such as film developing, print processing, enlarging, portrait photography, wedding photography, and so on

Includes: services of musicians, clowns, performers for private entertainments.

09.4.3. Games of Chance (S)

  • Service charges for lotteries, bookmakers, totalizators, casinos, and other gambling establishments, gaming machines, bingo halls, scratch cards, sweepstakes, and so on (service charge is defined as the difference between the amounts paid for lottery tickets or placed in bets and the amounts paid out to winners)

09.5 Newspapers, Books, and Stationery

09.5.1. Books (SD)

  • Books, including atlases, dictionaries, encyclopedias, textbooks, guidebooks, and musical scores

Includes: scrapbooks and albums for children; bookbinding.

Excludes: prerecorded tapes and compact discs of novels, plays, poetry, and so on (09.1.4); prerecorded diskettes and CD-ROMs containing books, dictionaries, encyclopedias, foreign language trainers, and so on in the form of software (09.1.4); and stamp albums (09.3.1).

09.5.2. Newspapers and Periodicals (ND)

  • Newspapers, magazines, and other periodicals

09.5.3. Miscellaneous Printed Matter (ND)

  • Catalogs and advertising material

  • Posters, plain or picture postcards, calendars

  • Greeting cards and visiting cards, announcement, and message cards

  • Maps and globes

Excludes: prefranked postcards and aerograms (08.1.0); stamp albums (09.3.1).

09.5.4. Stationery and Drawing Materials (ND)

  • Writing pads, envelopes, account books, notebooks, diaries, and so on

  • Pens, pencils, fountain pens, ballpoint pens, felt-tip pens, inks, erasers, pencil sharpeners, and so on

  • Stencils, carbon paper, typewriter ribbons, inking pads, correcting fluids, and so on

  • Paper punches, paper cutters, paper scissors, office glues and adhesives, staplers and staples, paper clips, drawing pins, and so on

  • Drawing and painting materials such as canvas, paper, card, paints, crayons, pastels, and brushes

Includes: toner and ink cartridges; educational materials such as exercise books, slide rules, geometry instruments, slates, chalks, and pencil boxes.

Excludes: pocket calculators (09.1.3).

09.6 Package Holidays

09.6.0. Package Holidays (S)

  • All-inclusive holidays or tours which provide for travel, food, accommodation, guides, and so on

Includes: half-day and one-day excursion tours; pilgrimages.

10 Education

This division covers educational services only. It does not include expenditures on educational materials, such as books (09.5.1) and stationery (09.5.4), or education support services, such as health care services (06), transport services (07.3), catering services (11.1.2), and accommodation services (11.2.0).

It includes education by radio or television broadcasting.

The breakdown of educational services is based upon the level categories of the 1997 International Standard Classification of Education (ISCED97) of the United Nations Educational, Scientific and Cultural Organization.

10.1 Preprimary and Primary Education

10.1.0. Preprimary and Primary Education (S)

  • Levels 0 and 1 of ISCED97: preprimary and primary education

Includes: literacy programs for students too old for primary school.

10.2 Secondary Education

10.2.0. Secondary Education (S)

  • Levels 2 and 3 of ISCED97: lower-secondary and upper-secondary education

Includes: out-of-school secondary education for adults and young people.

10.3 Postsecondary Nontertiary Education

10.3.0. Postsecondary Nontertiary Education (S)

  • Level 4 of ISCED97: postsecondary nontertiary education

Includes: out-of-school postsecondary nontertiary education for adults and young people.

10.4 Tertiary Education

10.4.0. Tertiary Education (S)

  • Levels 5 and 6 of ISCED97: first stage and second stage of tertiary education

10.5 Education Not Definable by Level

10.5.0. Education Not Definable by Level (S)

  • Educational programs, generally for adults, which do not require any special prior instruction, in particular vocational training and cultural development

Excludes: driving lessons (07.2.4); recreational training courses such as sport or bridge lessons given by independent teachers (09.4.1).

11 Restaurants and Hotels

11.1 Catering Services

11.1.1. Restaurants, Cafés, and the Like (S)

Catering services (meals, snacks, drinks, and refreshments) provided by restaurants, cafés, buffets, bars, tearooms, and so on, including those provided:

  • In places providing recreational, cultural, sporting or entertainment services: theatres, cinemas, sports stadiums, swimming pools, sports complexes, museums, art galleries, nightclubs, dancing establishments, and so on

  • On public transport (coaches, trains, boats, airplanes, and so on) when priced separately

Also included are the following:

  • The sale of food products and beverages for immediate consumption by kiosks, street vendors, and the like, including food products and beverages dispensed ready for consumption by automatic vending machines

  • The sale of cooked dishes by restaurants for consumption off their premises

  • The sale of cooked dishes by catering contractors whether collected by the customer or delivered to the customer’s home.

Includes: tips.

Excludes: tobacco purchases (02.2.0); telephone calls (08.3.0).

11.1.2. Canteens (S)

  • Catering services of works canteens, office canteens and canteens in schools, universities, and other educational establishments

Includes: university reflectories, military messes, and wardrooms. Excludes: food and drink provided to hospital inpatients (06.3.0).

11.2 Accommodation Services

11.2.0. Accommodation Services (S)

Accommodation services of:

  • Hotels, boarding houses, motels, inns, and establishments offering “bed and breakfast”

  • Holiday villages and holiday centers, camping and caravan sites, youth hostels, and mountain chalets

  • Boarding schools, universities, and other educational establishments

  • Public transport (trains, boats, and so on) when priced separately

  • Hostels for young workers or immigrants.

Includes: tips, porters.

Excludes: payments of households occupying a room in a hotel or boarding house as their main residence (04.1.1); rentals paid by households for a secondary residence for the duration of a holiday (04.1.2); telephone calls (08.3.0); catering services in such establishments except for breakfast or other meals included in the price of the accommodation (11.1.1); and housing in orphanages, homes for disabled or maladjusted persons (12.4.0).

12 Miscellaneous Goods and Services

12.1 Personal Care

12.1.1. Hairdressing Salons and Personal Grooming Establishments (S)

  • Services of hairdressing salons, barbers, beauty shops, manicures, pedicures, Turkish baths, saunas, solariums, nonmedical massages, and so on

Includes: bodycare, depilation, and the like.

Excludes: spas (06.2.3) or (06.3.0); fitness centers (09.4.1).

12.1.2. Electric Appliances for Personal Care (SD)

  • Electric razors and hair trimmers, handheld and hood hairdryers, curling tongs and styling combs, sunlamps, vibrators, electric toothbrushes and other electric appliances for dental hygiene, and so on Repair of such appliances

12.1.3. Other Appliances, Articles, and Products for Personal Care (ND)

  • Nonelectric appliances: razors and hair trimmers and blades therefor, scissors, nail files, combs, shaving brushes, hairbrushes, toothbrushes, nail brushes, hairpins, curlers, personal weighing machines, baby scales, and so on

  • Articles for personal hygiene: toilet soap, medicinal soap, cleansing oil and milk, shaving soap, shaving cream and foam, toothpaste, and so on

  • Beauty products: lipstick, nail varnish, makeup and makeup removal products (including powder compacts, brushes, and powder puffs), hair lacquers and lotions, pre-shave and after-shave products, sunbathing products, hair removers, perfumes and toilet waters, personal deodorants, bath products, and so on

  • Other products: toilet paper, paper handkerchiefs, paper towels, sanitary towels, cotton wool, cotton tops, babies’ napkins, toilet sponges, and so on

Excludes: handkerchiefs made of fabric (03.1.3).

12.2 Prostitution

12.2.0. Prostitution (S)

  • Services provided by prostitutes and the like

12.3 Personal Effects N.E.C.

12.3.1. Jewelry, Clocks, and Watches (D)

  • Precious stones and metals and jewelry fashioned out of such stones and metals

  • Costume jewelry, cuff links, and tiepins

  • Clocks, watches, stopwatches, alarm clocks, travel clocks

Repair of such articles

Excludes: ornaments (05.1.1) or (05.4.0); radio clocks (09.1.1); precious stones and metals and jewelry fashioned out of such stones and metals acquired primarily as stores of value (capital formation).

12.3.2. Other Personal Effects (SD)

  • Travel goods and other carriers of personal effects: suitcases, trunks, travel bags, attaché cases, satchels, handbags, wallets, purses, and so on

  • Articles for babies: baby carriages, pushchairs, carrycots, recliners, car beds and seats, back carriers, front carriers, reins and harnesses, and so on

  • Articles for smokers: pipes, lighters, cigarette cases, cigar cutters, ashtrays, and so on

  • Miscellaneous personal articles: sunglasses, walking sticks and canes, umbrellas and parasols, fans, keyrings, and so on

  • Funerary articles: coffins, gravestones, urns, and so on

Repair of such articles

Includes: lighter fuel; wall thermometers and barometers.

Excludes: baby furniture (05.1.1); shopping bags (05.2.0); and feeding bottles (05.4.0).

12.4 Social Protection

Social protection as defined here covers assistance and support services provided to persons who are elderly, disabled, having occupational injuries and diseases, survivors, unemployed, destitute, homeless, low-income earners, indigenous people, immigrants, refugees, alcohol and substance abusers, and so on. It also covers assistance and support services provided to families and children.

12.4.0. Social Protection (S)

Such services include residential care, home help, day care, and rehabilitation. More specifically, this class covers payments by households for:

  • Retirement homes for elderly persons, residences for disabled persons, rehabilitation centers providing long-term support for patients rather than health care and rehabilitative therapy, and schools for disabled persons where the main aim is to help students overcome their disability

  • Help to maintain elderly and disabled persons at home (home-cleaning services, meal programs, day care centers, day care services, and holiday care services)

  • Wet-nurses, crèches, play schools, and other child-minding facilities

  • Counseling, guidance, arbitration, fostering, and adoption services for families.

12.5 Insurance

Service charges for insurance are classified by type of insurance, namely, life insurance and nonlife insurance (that is, insurance in connection with the dwelling, health, transport, and so on). Service charges for multirisk insurance covering several risks should be classified on the basis of the cost of the principal risk if it is not possible to allocate the service charges to the various risks covered.

Service charge is defined as the difference between claims due and premiums earned and premium supplement.

12.5.1. Life Insurance (S)

  • Service charges for life assurance, death benefit assurance, education assurance, and so on

12.5.2. Insurance Connected with the Dwelling (S)

  • Service charges paid by owner-occupiers and by tenants for the kinds of insurance typically taken out by tenants against fire, theft, water damage, and so on

Excludes: service charges paid by owner-occupiers for the kinds of insurance typically taken out by landlords (intermediate consumption).

12.5.3. Insurance Connected with Health (S)

  • Service charges for private sickness and accident insurance

12.5.4. Insurance Connected with Transport (S)

  • Service charges for insurance in respect of personal transport equipment

  • Service charges for travel insurance and luggage insurance

12.5.5. Other Insurance (S)

  • Service charges for other insurance such as civil liability for injury or damage to third parties or their property

Excludes: civil liability or damage to third parties or their property arising from the operation of personal transport equipment (12.5.4).

12.6 Financial Services N.E.C.

12.6.1. FISIM (S)

  • Financial intermediation services indirectly measured

12.6.2. Other Financial Services N.E.C. (S)

  • Actual charges for the financial services of banks, post offices, saving banks, money changers, and similar financial institutions

  • Fees and service charges of brokers, investment counselors, tax consultants, and the like

  • Administrative charges of private pension funds and the like

12.7 Other Services N.E.C.

12.7.0. Other Services N.E.C. (S)

  • Fees for legal services, employment agencies, and so on Charges for undertaking and other funeral services

  • Payment for the services of estate agents, housing agents, auctioneers, salesroom operators, and other intermediaries

  • Payment for photocopies and other reproductions of documents

  • Fees for the issue of birth, marriage, and death certificates, and other administrative documents

  • Payment for newspaper notices and advertisements

  • Payment for the services of graphologists, astrologers, private detectives, bodyguards, matrimonial agencies and marriage guidance counselors, public writers, miscellaneous concessions (seats, toilets, and cloakrooms), and so on

Appendix 3 Classification of Individual Consumption According to Purpose 2018 (COICOP 2018)1

Introduction

The Classification of Individual Consumption According to Purpose (COICOP) serves as the international reference classification of household expenditure. COICOP provides a framework of homogeneous categories of goods and services, which are considered a function or purpose of household consumption expenditure. COICOP functions as an integral part of the System of National Accounts (SNA), but it is also used in several other statistical areas, such as the household budget survey or the consumer price index.

This appendix presents descriptions and explanations of the COICOP revision endorsed in 2018 (COICOP 2018) by the 49th Session of the United Nations Statistical Commission. COICOP 2018 provides more detail than the previous version (COICOP 1999), responding to users’ need for more detail, and addresses several other issues that prompted the revision of the classification. COICOP 2018 reflects the significant changes in goods and services in some areas, improves the links of COICOP to other classifications, and addresses emerging statistical and policy needs of several international organizations.

COICOP: Breakdown of Individual Consumption Expenditure of Households by Division and Group

01 Food and Nonalcoholic Beverages

Division 01 covers food and nonalcoholic beverages purchased by the household mainly for consumption or preparation at home. It excludes food and nonalcoholic beverages that are provided as part of a food serving service (Division 11).

Services for food processing for own consumption are also included in this division.

Food is composed of all edible goods that are purchased and consumed by the household with the purpose of nourishing. It includes: cereals and cereal products; meat; fish and other seafood; milk, other dairy products, and eggs; oils and fats; fruit and nuts; vegetables, tubers, plantains, cooking bananas, and pulses; sugar, confectionery, and desserts; salt, sauces and condiments, spices and culinary herbs, and seeds.

Division 01 also includes ready-made food that can be eaten as it is or requires heating. Nonalcoholic beverages include drinks that do not contain any alcohol.

01.1 Food

Food purchased by the household mainly for consumption or preparation at home. It excludes food that is provided as part of a food serving service.

Food is composed of all edible goods that are purchased and consumed by the household with the purpose of nourishing. It includes cereals and cereal products; meat; fish and other seafood; milk, other dairy products, and eggs; oils and fats; fruit and nuts; vegetables, tubers, plantains, cooking bananas, and pulses; sugar, confectionery, and desserts; salt, sauces and condiments, spices and culinary herbs, and seeds.

Includes:

  • Products that need to be cooked and further prepared as well as ready-made food

Excludes:

  • Service of local delivery of food or drinks when separately invoiced (07.4.9.2)

  • Products for animal feeding (09.3.2.2)

  • Food provided by food serving services (Division 11)

01.1.1 Cereals and Cereal Products (ND)

01.1.1.1 Cereals (ND)

Dried grains of cereals, whether or not precooked, but not further processed.

Includes:

  • Wheat

  • Rice, including parboiled rice

  • Sorghum

  • Barley

  • Millet

  • Quinoa

  • Maize

  • Other cereals

Includes also:

  • Teff

  • Rye

  • Oats

  • Triticale

  • Buckwheat

  • Canary seed

  • Quihuicha or Inca wheat

  • Canagua or coaihua

  • Adlay or Job’s tears

  • Mixed cereal grains, in the form of dried grains, but not further processed

Excludes:

  • Flour of cereals (01.1.1.2)

  • Breakfast cereals (01.1.1.4)

  • Ready-made preparations based on cereals, such as ready-made soups based on cereals (01.1.9.1)

  • Baby rice cereals and other baby cereals (01.1.9.2)

  • Seeds for planting (09.3.1.2)

01.1.1.2 Flour of Cereals (ND)

Includes:

  • Flour of cereals mentioned in subclass 01.1.1.1

Excludes:

  • Flour as baby food, baby rice cereals, and other baby cereals (01.1.9.2)

01.1.1.3 Bread and Bakery Products (ND):

Includes

  • Bread and bread rolls

  • Crispbread, rusks, toasted bread, crackers

  • Tortillas

  • Injera

  • Pizza bases without topping, whether precooked or not

  • Gingerbread and the like

  • Sweet biscuits (cookies)

  • Waffles and wafers

  • Ice cream cones

  • Crumpets, muffins, croissants, cakes, sweet tarts, sweet pies, and other pastry goods and cakes

Excludes:

  • Pizza (with topping), quiche, meat, or fish pies (01.1.9.1)

01.1.1.4 Breakfast Cereals (ND)

Includes:

  • Cornflakes, oatmeal and oat fakes, muesli, granola, and puffed cereals including puffed rice cakes

  • Breakfast cereals with nuts or dried fruit

Excludes:

  • Popcorn (1.1.1.9)

01.1.1.5 Macaroni, Noodles, Couscous, and Similar Pasta Products (ND)

Includes:

  • Pasta uncooked, whether stuffed or not, and couscous

  • Uncooked dumplings, ravioli, and similar

  • Bulgur

Excludes:

  • Prepared dishes containing stuffed pasta; prepared couscous dishes (01.1.9.1)

01.1.1.9 Other Cereal and Grain Mill Products (ND)

Includes:

  • Mixes and doughs for the preparation of bakery products

  • Popcorn

  • Granola bars

  • Malt; malt extract

  • Chips and crisps of cereals

Includes also:

  • Seitan and other meat substitutes made from cereals

Excludes:

  • Soy meat and burgers, veggie burgers, tofu, tempeh, and other meat substitutes made from vegetables and nuts; potato starch, tapioca, sago, and other starches (01.1.7.9)

  • Ready-made preparations based on cereals, such as ready-made soups based on cereals (01.1.9.1)

01.1.2 Live Animals, Meat, and Other Parts of Slaughtered Land Animals (ND)

01.1.2.1 Live Land Animals (ND)

Live land animals, both domestic and wild, for food purpose.

Includes:

  • Cattle (cow, veal, common zebu or humped ox, watussi ox, gaur, gayal, banteng, Tibetan yak)

  • Buffaloes (Indian or water buffaloes, Asiatic buffalo or arni, Celebese anoa or pigmy buffaloes, African buffaloes, such as the dwarf buffaloes and the large Caffrarian buffaloes, the American bison or “buffalo” and the European bison, the “beefalo” [a cross between a bison and a domestic beef animal])

  • Pigs

  • Goats, lambs, and sheep

  • Poultry (chicken, ducks, geese, turkeys, and guinea flow)

  • Horses, donkeys, and other equines

  • Camels, dromedaries, alpaca, llama, guanaco, vicuña, and other camelids

  • Seals, walruses, whales, and other marine mammals

  • Antelopes, deer, boars, kangaroos

  • Ostriches, emus, rhea, pheasant, grouse, pigeon, quail, and other birds

  • Snakes, alligators, and other reptiles

  • Spiders, scorpions, and other insects and worms

  • Terrestrial snails

  • Frogs

Excludes:

  • Live fish (01.1.3.1)

  • Other live seafood (01.1.3.4)

  • Live animals for transport (07.1.4.0)

01.1.2.2 Meat, Fresh, Chilled, or Frozen (ND)

Meat of all animals, both domestic and wild, fresh, chilled, or frozen.

Includes:

  • Meat of cattle (cow, veal, common zebu or humped ox, watussi ox, gaur, gayal, banteng, Tibetan yak)

  • Meat of buffaloes (Indian or water buffaloes, Asiatic buffalo or arni, Celebese anoa or pigmy buffaloes, African buffaloes, such as the dwarf buffaloes and the large Caffrarian buffaloes, the American bison or “buffalo” and the European bison, the “beefalo” [a cross between a bison and a domestic beef animal])

  • Meat of pigs

  • Meat of goats, lambs, and sheep

  • Meat of poultry (chicken, ducks, geese, turkeys, and guinea flow)

  • Meat of horses, donkeys, and other equines

  • Meat of camels, dromedaries, alpaca, llama, guanaco, vicuña, and other camelids

  • Meat of seals, walruses, whales, and other marine mammals

  • Meat of antelopes, deer, boars, and kangaroos

  • Meat of ostriches, emus, rhea, pheasant, grouse, pigeon, quail, and other birds

  • Meat of snakes, alligators, and other reptiles

  • Meat of spiders, scorpions, and other insects and worms

  • Meat of terrestrial snails

  • Meat of frogs

Includes also:

  • Minced meat of animals mentioned previously

01.1.2.3 Meat, Dried, Salted, in Brine or Smoked (ND)

Meat of all animals dried, salted, in brine or smoked.

Includes:

  • Bacon, ham, salami

Excludes:

  • Pâté (01.1.2.5)

01.1.2.4 Offal, Blood, and Other Parts of Slaughtered Animals, Fresh, Chilled, or Frozen, Dried, Salted, in Brine or Smoked (ND)

Offal and other parts of slaughtered animals fresh, chilled or frozen, dried, salted, in brine or smoked.

Includes:

  • Bones

  • Pork heads, tails, and ears; chicken feet

Excludes:

  • Offal, blood, and other parts of slaughtered animals’ preparations (01.1.2.5)

01.1.2.5 Meat, Offal, Blood, and Other Parts of Slaughtered Animals Preparations (ND)

Meat, offal or blood preparations, whether frozen or not.

Includes:

  • Sausages and similar products of meat, offal, or blood

  • Marinated meat

  • Canned meat, meat extracts, meat juices

  • Minced meat, if mixed meat from more than one kind of animal’s minced meat

  • All kind of pâté, including liver pâté

  • Breaded meat

  • Other preparations of meat, meat offal, or blood

01.1.3 Fish and Other Seafood (ND)

Fish and other seafood, such as crustaceans, molluscs, and other aquatic invertebrates, as whole or part of (that is cuts, fillets, meat, minced or not), including livers, roes, fins, meal, and other offal.

Excludes:

  • Marine mammals, frogs, and terrestrial snails (01.1.2.1, 01.1.2.2, 01.1.2.3)

  • Seaweeds and other aquatic plants (01.1.7.4)

01.1.3.1 Fish, Live, Fresh, Chilled, or Frozen (ND)

Fish, live, fresh, chilled, or frozen.

Includes:

  • Fish live for food purpose

  • Fish fresh, chilled, or frozen

  • Fish fillets and meat, minced or not, fresh, chilled, or frozen

Excludes:

  • Livers, roes, fins, and other offal (01.1.3.7)

01.1.3.2 Fish, Dried, Salted, in Brine or Smoked (ND)

Fish, dried, salted or in brine; smoked.

Includes:

  • Fish fillets and meat dried, salted or in brine; smoked

Excludes:

  • Livers, roes, fins, and other offal (01.1.3.7)

01.1.3.3 Fish Preparations (ND)

Prepared foodstuffs made of fish whether frozen or not.

Includes:

  • Fillets merely covered with batter or bread crumbs, whether or not frozen

  • Crabmeat and surimi

Excludes:

  • Caviar and caviar substitutes and prepared and preserved shark fins; livers, roes, fins, and other offal (01.1.3.7)

01.1.3.4 Other Seafood, Live, Fresh, Chilled, or Frozen (ND)

Includes:

  • Crabs, lobsters, crayfish, krill, sea spider, shrimps and prawns, and other crustaceans, live, fresh, chilled, or frozen

  • Cuttlefish, squid, octopus, sea snails, abalone and bivalves, such as oysters, scallops, mussels, clams, cockles and ark shells, and other molluscs, live, fresh, chilled, or frozen

  • Sea urchins, sea cucumbers (bêches-de-mer) and jelly-fish, and other aquatic invertebrates, live, fresh, chilled, or frozen

Excludes:

  • Terrestrial molluscs, including terrestrial snails, live, fresh, chilled, or frozen (01.1.2.1, 01.1.2.2, 01.1.2.3)

  • Seaweeds and other edible aquatic plants (01.1.7.4)

01.1.3.5 Other Seafood, Dried, Salted, in Brine or Smoked (ND)

Other seafood as defined in 01.1.3.4, dried, salted or in brine; smoked.

01.1.3.6 Other Seafood Preparations (ND)

Prepared foodstuffs made of other seafood as defined in 01.1.3.4 whether frozen or not.

01.1.3.7 Livers, Roes, and Offal of Fish and of Other Seafood in All Forms (ND)

Includes:

  • Livers, roes, fins, maws, meal, and other offal in all product forms, that is, fresh, chilled, frozen, dried, salted, in brine or smoked, prepared or preserved

Excludes:

  • Seaweeds and other aquatic plants (01.1.7.4)

01.1.4 Milk, Other Dairy Products, and Eggs (ND)

01.1.4.1 Raw and Whole Milk (ND)

Raw and whole milk of cattle and buffalo, sheep and goat, camels and other animals, fresh, pasteurized, sterilized (UHT), and reconstituted.

Excludes:

  • Curdled, fermented, or acidified milk and cream (01.1.4.6)

01.1.4.2 Skimmed Milk (ND)

Skimmed and semiskimmed milk of cattle and buffalo, sheep and goat, camels, and other animals.

01.1.4.3 Other Milk and Cream (ND)

Includes:

  • Powdered, whole or skimmed milk

  • Evaporated and condensed milk

  • Fresh, clotted, thickened, and whipped cream

Includes also:

  • Baked milk

Excludes:

  • Beverages favored with cocoa, coffee, or other substances (01.1.4.7)

  • Condensed, evaporated or powdered milk as baby food (01.1.9.2)

01.1.4.4 Nonanimal Milk (ND)

Milk from nonanimal origin.

Includes:

  • Almond milk

  • Coconut milk drink

  • Oat milk

  • Rice milk

  • Soy milk

  • Other milk from vegetables and nuts

Excludes:

  • Coconut milk for cooking (01.1.9.3)

01.1.4.5 Cheese (ND)

All kinds of cheese (fresh hard, semihard, blue cheese, cottage cheese) and curd both from animal and nonanimal milk.

Excludes:

  • Tofu (01.1.7.9)

01.1.4.6 Yogurt and Similar Products (ND)

Includes:

  • Yogurt

  • Buttermilk

  • Curdled milk and cream

  • Kefir and other fermented or acidified milk and cream whether or not concentrated or containing added sugar or other sweetening matter or favored or containing added fruit, nuts, or cocoa

  • Yogurt from nonanimal milk (for example, coconut yogurt, soy yogurt)

Excludes:

  • Frozen yogurt (01.1.8.6)

01.1.4.7 Milk-Based Dessert and Beverages (ND)

Includes:

  • Milk-based desserts from the milk of animal and nonanimal origin

  • Beverages based on milk of animal and nonanimal origin favored with cocoa, coffee, or other substances

Includes also:

  • Puddings based on milk of animal and nonanimal origin; panna cotta; crème brûlée; and crema catalana

Excludes:

  • Lemon curd and similar (01.1.8.3)

01.1.4.8 Eggs (ND)

Includes:

  • Eggs of hen and other birds in shell, fresh

  • Eggs of other animals, including turtle eggs, in shell, fresh

  • Eggs in shell or not, preserved or cooked

  • Eggs yolks, fresh or preserved

  • Eggs albumin

Excludes:

  • Fish roes (01.1.3.7)

  • Omelets, crepes, and other ready-made food products based on eggs (01.1.9.1)

01.1.4.9 Other Dairy Products (ND)

Includes:

  • Whey and casein

  • Cream concentrated or containing added sugar or other sweetening matter; cream powder

  • Other products consisting of milk constituents, milk protein concentrates, and products obtained from whey

Excludes:

  • Butter and other fats and oils derived from milk (01.1.5.2)

  • Ice cream (01.1.8.6)

01.1.5 Oils and Fats (ND)

01.1.5.1 Vegetable Oils (ND)

All oil of vegetable origin, including oil extracted from fruit, nuts, and other crops.

Includes:

  • Sunflower-seed and safflower oil

  • Palm oil; olive oil

  • Soya bean oil

  • Groundnut oil

  • Rapeseed, colza, and mustard oil

  • Corn oil

  • Cotton oil

  • Other oils of vegetable origin

Includes also:

  • Coconut oil

  • Avocado oil

  • Rice bran oil

01.1.5.2 Butter and Other Fats and Oils Derived from Milk (ND)

Includes:

  • Butter

  • Butter oil

  • Ghee

01.1.5.3 Margarine and Similar Preparations (ND)

Includes:

  • Margarine

  • Diet margarine

Excludes:

  • Peanut butter (01.1.8.4)

01.1.5.9 Other Animal Oils and Fats (ND)

Includes:

  • Pig fat and lard, also including leaves or other spices

  • Fat from cattle, buffalos, sheep, goats, and poultry

  • Greaves fat and oleo stock

  • Fats and oils of fish

Excludes:

  • Cod or halibut liver oil (06.1.1.1)

01.1.6 Fruits and Nuts (ND)

01.1.6.1 Dates, Figs, and Tropical Fruits, Fresh (ND)

Includes:

  • Dates

  • Figs

  • Avocados

  • Bananas

  • Mangoes, guavas, and mangosteens

  • Papayas

  • Pineapples

  • Coconut

  • Breadfruits

  • Other tropical and subtropical fruit, fresh

Excludes:

  • Plantains and cooking bananas (01.1.7.5)

01.1.6.2 Citrus Fruits, Fresh (ND)

Includes:

  • Oranges

  • Pomelos and grapefruit

  • Lemons and limes

  • Tangerines

  • Mandarins and clementines

  • Other citrus fruits, fresh

01.1.6.3 Stone Fruits and Pome Fruits, Fresh (ND)

Includes:

  • Apples

  • Pears and quinces

  • Apricots

  • Cherries and sour cherries

  • Peaches and nectarines

  • Plums and sloes

  • Other pome fruits and stone fruits, fresh

01.1.6.4 Berries, Fresh (ND)

Includes:

  • Currants and gooseberries

  • Raspberries

  • Blackberries

  • Mulberries and loganberries

  • Strawberries

  • Other berries fresh

01.1.6.5 Other Fruits, Fresh (ND)

Includes:

  • Grapes

  • Kiwi fruit

  • Cantaloupes and other melons

  • Watermelons

  • Pomegranates

  • Other fruits, fresh, n.e.c.

01.1.6.6 Frozen Fruit (ND)

Fruit, uncooked or cooked, frozen, whether or not containing added sugar or other sweetening matter.

01.1.6.7 Fruit, Dried, and Dehydrated (ND)

Includes:

  • Raisins

  • Prunes

  • Dried apricots

  • Dried coconut

  • Other dried fruits

Excludes:

  • Fruit four (01.1.6.9)

01.1.6.8 Nuts, in Shell or Shelled (ND)

Includes:

  • Almonds

  • Cashew nuts

  • Chestnuts

  • Hazelnuts

  • Pistachios

  • Walnuts

  • Brazil nuts

  • Groundnuts

  • Other nuts in shell or shelled

01.1.6.9 Fruit and Nuts Ground and Other Preparations (ND)

Fruit and nuts preparations whether frozen or not.

Includes:

  • Fruit four

  • Nuts, groundnuts, and other seeds, roasted, salted, or otherwise prepared

  • Canned fruit

  • Homogenized fruit preparations

  • Fruit pickles

Excludes:

  • Jams, fruit jellies, marmalades, and fruit purée and pastes (01.1.8.3)

  • Nut purée, nut butter, and nut pastes (01.1.8.4)

  • Homogenized preparations as baby food (01.1.9.2)

01.1.7 Vegetables, Tubers, Plantains, Cooking Bananas, and Pulses (ND)

01.1.7.1 Leafy or Stem Vegetables, Fresh or Chilled (ND)

Includes:

  • Asparagus

  • Cabbages

  • Cauliflowers and broccoli

  • Lettuce and chicory

  • Spinach

  • Artichokes

  • Other leafy or stem vegetables, fresh or chilled

01.1.7.2 Fruit-Bearing Vegetables, Fresh or Chilled (ND)

Includes:

  • Chilies and peppers

  • Cucumbers and gherkins

  • Eggplants (aubergines)

  • Tomatoes

  • Pumpkins

  • Squash and gourds

  • Other fruit-bearing vegetables, fresh or chilled

01.1.7.3 Green Leguminous Vegetables, Fresh or Chilled (ND)

Includes:

  • Beans

  • Peas

  • Broad beans and horse beans green

  • Soya beans

  • Other green leguminous vegetables, fresh or chilled

01.1.7.4 Other Vegetables, Fresh or Chilled (ND)

Includes:

  • Carrots and turnips

  • Garlic

  • Onions

  • Leeks and other alliaceous vegetables

  • Other root, bulb, and tuberous vegetables, fresh or chilled

  • Mushrooms and truffles

  • Seaweeds and other aquatic plants

  • Olives

  • Other vegetables, fresh or chilled n.e.c.

  • Mixtures of vegetables, fresh or chilled

01.1.7.5 Tubers, Plantains, and Cooking Bananas (ND)

Includes:

  • All types of potatoes including sweet potatoes

  • Cassava; manioc and yucca

  • Yams

  • Taro

  • Yautia, also known as malanga, new cocoyam, ocumo, tannia

  • Plantains and cooking bananas

Includes also:

  • Arrowroots, lotus roots, salep, Jerusalem artichokes, topinambur, and Tacca

Excludes:

  • Dessert bananas (01.1.6.1)

01.1.7.6 Pulses (ND)

Dried leguminous vegetables.

Includes:

  • Common beans and other beans

  • Broad beans and horse beans, also known as fava beans

  • Chickpeas

  • Lentil

  • Peas

  • Cowpeas

  • Pigeon peas

  • Bambara beans

  • Mixtures of pulses

01.1.7.7 Other Vegetables, Tubers, Plantains, and Cooking Bananas, Dried and Dehydrated (ND)

Vegetables, other than leguminous, tubers, plantains, and cooking bananas dried and dehydrated.

Includes:

  • Dried soybeans

  • Dried potatoes

  • Dehydrated garlic and onions

Excludes:

  • Vegetable fours (01.1.7.9)

01.1.7.8 Vegetables, Tubers, Plantains, and Cooking Bananas, Frozen (ND)

Includes:

  • Frozen vegetables in 01.1.7.1–01.1.7.4

  • Frozen tubers

  • Frozen plantains and cooking bananas

Excludes:

  • Frozen preparations, such as frozen, chipped potatoes (01.1.7.9)

01.1.7.9 Vegetables, Tubers, Plantains, Cooking Bananas and Pulses Ground, and Other Preparations (ND)

Vegetables, tubers, plantains, cooking bananas, and pulses preparations, whether frozen or not.

Includes:

  • Flours of vegetables, pulses, tubers, plantains, and cooking bananas

  • Canned vegetables

  • Preserved olives, vegetable fakes, vegetable purée, vegetable chips, and crisps

  • Frozen, chipped potatoes

  • Vegetable concentrates

  • Homogenized preparations

  • Vegetable pickles

Includes also:

  • Soy meat and burgers, veggie burgers, tofu, tempeh, and other meat substitutes made from vegetables and nuts

  • Kocho (fatbread made of plant stem)

  • Potato starch, tapioca, sago, and other starches

Excludes:

  • Ready-made vegetables prepared, frozen or not, including other ingredients, such as cheese or meat/fish; ready-made soups (01.1.9.1)

  • Homogenized preparations as baby food (01.1.9.2)

  • Culinary herbs and spices (01.1.9.4)

  • Broths and stocks containing vegetables (01.1.9.9)

  • Vegetable juices (01.2.1.0)

01.1.8 Sugar, Confectionery, and Desserts (ND)

01.1.8.1 Cane and Beet Sugar (ND)

Includes:

  • Cane or beet sugar, raw or refined, powdered, crystallized or in lumps

01.1.8.2 Other Sugar and Sugar Substitutes (ND)

Includes:

  • Sugar other than cane and beet (for example, coconut sugar)

  • Stevia

  • Glucose and glucose syrup; fructose and fructose syrup

  • Lactose and lactose syrup

  • Invert sugar

  • Artificial honey, saccharin, and other artificial sweeteners

  • Refined cane or beet sugar, in solid form, containing added favoring or coloring matter

  • Maple sugar and maple syrup; caramel; molasses; sugars and sugar syrups n.e.c.

01.1.8.3 Jams, Fruit Jellies, Marmalades, Fruit Purée and Pastes, and Honey (ND)

Includes:

  • Honey, jams, marmalades, compotes, jellies, and fruit purées and pastes

Includes also:

  • Lemon curd and other fruit curd

01.1.8.4 Nut Purée, Nut Butter, and Nut Pastes (ND)

Includes:

  • Peanut butter

  • Other nut butter, such as almond butter, cashew butter, hazelnut butter, macadamia nut butter, pecan butter, pistachio butter, and walnut butter

01.1.8.5 Chocolate, Cocoa, and Cocoa-Based Food Products (ND)

Includes:

  • Cocoa (including cocoa beans) and cocoa powder for all purposes

  • Chocolate in bars or slabs, including white chocolate

  • Chocolate and cocoa-based foods and cocoa-based dessert

  • Chocolate and cocoa-based creams or spreads

  • Chocolate-covered marshmallows and chocolate-covered jelly if the product is composed of a majority of chocolate

Excludes:

  • Cocoa and chocolate-based drinks (01.2.4.0)

01.1.8.6 Ice, Ice Cream, and Sorbet (ND)

Includes:

  • Ice cubes for drinks

  • Ice cream and kulfi

  • Sorbet

  • Frozen yogurt

  • Ice pop

Includes also:

  • Tofu ice cream

Excludes:

  • Ice for cooling (04.5.5.0)

01.1.8.9 Other Sugar Confectionery and Desserts N.E.C. (ND)

Includes:

  • Desserts n.e.c.

  • Vegetables, fruit, nuts, fruit peel, and other parts of plants, preserved by sugar

  • Chewing gum, toffees, lollies, candies, and pastilles

  • Other confectionary products

Excludes:

  • Sugar confectionery based on cocoa and chocolate (01.1.8.5)

01.1.9 Ready-Made Food and Other Food Products N.E.C. (ND)

01.1.9.1 Ready-Made Food (ND)

Prepared food and meals that can be eaten as is or after heating but that do not require cooking. They contain mixed ingredients and can be fresh, frozen, or dehydrated/instant. They can include sauces and dressing which, especially when food is fresh, can be provided in separate bags. Disposable fork, knife, spoon, or chopsticks are sometimes also included in the package.

Includes:

  • Precooked dishes containing stuffed pasta, rice, and other cereals, such as couscous dishes, including vegetables, meat, fish, cheese, or other ingredients; ready to eat dumplings, ravioli, noodles, and similar with sauce

  • Ready-made meals and dishes based on precooked meat, meat substitutes, and fish

  • TV dinners

  • Composed salads and other prepared dishes and meals based on vegetables, pulses, and potatoes also including other ingredients, such as meat, fish, and cheese

  • Sandwiches, pizzas, quiches, meat, or fish pies, frozen or not

  • Omelets, crepes, and other food products based on eggs when precooked and served as a main dish

  • Ready-made soups including dehydrated and instant soups and stews

  • Other prepared ready-made dishes and meals n.e.c.

Excludes:

  • Bread and bakery products (01.1.1.3)

  • Macaroni, noodles, couscous, and similar pasta products uncooked, whether stuffed or not (01.1.1.5)

  • Cheese (01.1.4.5) and yogurt (01.1.4.6)

  • Cakes (0.1.1.1.3), ice cream (0.1.1.8.6), and other desserts n.e.c. (01.1.8.9)

  • Frozen, chipped potatoes (01.1.7.9)

01.1.9.2 Baby Food (ND)

Food that is for baby use exclusively.

Includes:

  • Baby formula (powdered, condensed, and evaporated milk for baby use)

  • Baby rice cereals and four for baby meals

  • Homogenized baby food

Excludes:

  • Cereals and four not intended for baby use exclusively (01.1.1.1, 01.1.1.2)

  • Powdered milk not intended for baby use exclusively (01.1.4.3)

  • Yogurt for children (01.1.4.6)

  • Homogenized fruit and vegetable preparations not intended for baby use exclusively (01.1.6.9; 0.1.1.7.9)

01.1.9.3 Salt, Condiments, and Sauces (ND)

Includes:

  • Salt, sauces, condiments and seasonings (mustard, mayonnaise, ketchup, soy sauce, and so on), and vinegar

Includes also:

  • Coconut milk for cooking

Excludes:

  • Coconut milk drink (01.1.4.4)

  • Fruit and vegetable pickles (01.1.7.9)

01.1.9.4 Spices, Culinary Herbs, and Seeds (ND)

Includes:

  • Pepper, pimento, ginger, and other spices

  • Parsley, rosemary, thyme, and other culinary herbs

  • Poppy seed, sesame seed, linseed, and other seeds

Excludes:

  • Vegetable oils (01.1.5.1)

  • Seeds for plating (09.3.1.2)

01.1.9.9 Other Food Products N.E.C. (ND)

Includes:

  • Sugar cane consumed for extracting juice or as a snack

  • Prepared baking powders and yeasts, broth, stocks, bouillon cubes, soup bases, agar-agar, instant dessert preparations

  • Nutritional supplements and fortified food products

01.2 Nonalcoholic Beverages

Nonalcoholic beverages purchased by the household, regardless of where these are consumed excluding beverages that are provided as part of a food and beverage serving service. (Division 11)

Includes:

  • Beverages that do not contain any alcohol

Excludes:

  • Nonalcoholic beverages for immediate consumption provided by a serving service (11.1.1)

  • Milk (01.1.4.1, 01.1.4.2, 01.1.4.3, 01.1.4.4)

01.2.1 Fruit and Vegetable Juices (ND)

Includes:

  • Fruit and vegetable juices unfermented and not containing added alcohol, whether or not containing added sugar or other sweetening matter

  • Concentrated juices and frozen juices

  • Powdered juices

Excludes:

  • Sparkling juices (01.2.6.0)

01.2.1.0 Fruit and Vegetable Juices (ND)

Includes:

  • Fruit and vegetable juices unfermented and not containing added alcohol, whether or not containing added sugar or other sweetening matter

  • Concentrated juices and frozen juices

  • Powdered juices

Excludes:

  • Sparkling juices (01.2.6.0)

01.2.2 Coffee and Coffee Substitutes (ND)

Includes:

  • Coffee, whether or not decaffeinated, roasted or ground, including instant coffee

  • Coffee substitutes

  • Extracts, essences, and concentrates of coffee

  • Coffee-based beverage preparations

Includes also:

  • Roasted chicory and other roasted coffee substitutes, and extracts, essences, and concentrates thereof

Excludes:

  • Milk favored with coffee (01.1.4.7)

01.2.2.0 Coffee and Coffee Substitutes (ND)

Includes:

  • Coffee, whether or not decaffeinated, roasted or ground, including instant coffee

  • Coffee substitutes

  • Extracts, essences, and concentrates of coffee

  • Coffee-based beverage preparations

Includes also:

  • Roasted chicory and other roasted coffee substitutes, and extracts, essences, and concentrates thereof

Excludes:

  • Milk favored with coffee (01.1.4.7)

01.2.3 Tea, Maté, and Other Plant Products for Infusion (ND)

Includes:

  • Green tea (not fermented), black tea (fermented) and partly fermented tea, maté, and other plant products for infusion

  • Tea substitutes and extracts and essences of tea

Includes also:

  • Fruit and herbal tea

  • Rooibos tea

  • Instant tea

  • Iced tea

01.2.3.0 Tea, Maté, and Other Plant Products for Infusion (ND)

Includes:

  • Green tea (not fermented), black tea (fermented) and partly fermented tea, maté, and other plant products for infusion

  • Tea substitutes and extracts and essences of tea

Includes also:

  • Fruit and herbal tea

  • Rooibos tea

  • Instant tea

  • Iced tea

01.2.4 Cocoa Drinks (ND)

Includes:

  • Cocoa and chocolate-based drinks

Excludes:

  • Milk favored with chocolate or cacao (01.1.4.7)

  • Cocoa powder for all purposes; chocolate in bars or slabs; cocoa-based food and cocoa-based dessert preparations (01.1.8.5)

01.2.4.0 Cocoa Drinks (ND)

Includes:

  • Cocoa and chocolate-based drinks

Excludes:

  • Milk favored with chocolate or cacao (01.1.4.7)

  • Cocoa powder for all purposes; chocolate in bars or slabs; cocoa-based food and cocoa-based dessert preparations (01.1.8.5)

01.2.5 Water (ND)

Mineral or spring waters, still or sparkling, not added with other ingredients.

Excludes:

  • Flavored water (01.2.9.0)

01.2.5.0 Water (ND)

Mineral or spring waters, still or sparkling, not added with other ingredients.

Excludes:

  • Flavored water (01.2.9.0)

01.2.6 Soft Drinks (ND)

Includes:

  • Soft drinks, such as sodas, lemonades, and colas

  • Sparkling juices

Excludes:

  • Sparkling water (01.2.5.0)

  • Flavored water (01.2.9.0)

01.2.6.0 Soft Drinks (ND)

Includes:

  • Soft drinks, such as sodas, lemonades, and colas

  • Sparkling juices

Excludes:

  • Sparkling water (01.2.5.0)

  • Flavored water (01.2.9.0)

01.2.9 Other Nonalcoholic Beverages (ND)

Includes:

  • Flavored water

  • Energy drinks, energy supplement, and protein powder for drink preparation

  • Birch juice and sap, aloe vera juice, and drinks

  • Syrups and concentrates for the preparation of beverages

  • Other nonalcoholic beverages

01.2.9.0 Other Nonalcoholic Beverages (ND)

Includes:

  • Flavored water

  • Energy drinks, energy supplement, and protein powder for drink preparation

  • Birch juice and sap, aloe vera juice, and drinks

  • Syrups and concentrates for the preparation of beverages

  • Other nonalcoholic beverages

01.3 Services for Processing Primary Goods for Food and Nonalcoholic Beverages

Services purchased for the processing of primary products provided by households to produce food and nonalcoholic beverages for own final consumption by households.

01.3.0 Services for Processing Primary Goods for Food and Nonalcoholic Beverages (S)

Services purchased for the processing of primary products provided by households to produce food and nonalcoholic beverages for own final consumption by households.

Includes:

  • Grinding of cereals for four production

  • Oil pressing

  • Fruit/vegetable crushing and pressing services for the production of juices

Excludes:

  • Food processing for business purpose (not in the scope of COICOP)

  • Fruit/vegetable crushing and pressing services for the production of alcoholic beverages (02.2.1.0)

01.3.0.0 Services for Processing Primary Goods for Food and Nonalcoholic Beverages (S)

Services purchased for the processing of primary products provided by households to produce food and nonalcoholic beverages for own final consumption by households.

Includes:

  • Grinding of cereals for four production

  • Oil pressing

  • Fruit/vegetable crushing and pressing services for the production of juices

Excludes:

  • Food processing for business purpose (not in the scope of COICOP)

  • Fruit/vegetable crushing and pressing services for the production of alcoholic beverages (02.2.1.0)

02 Alcoholic Beverages, Tobacco, and Narcotics

Division 02 covers the purchase of alcoholic beverages and of tobacco products and narcotics, regardless of where these are consumed but not provided as part of a food and beverage serving service.

It also includes low and nonalcoholic beverages, which are generally alcoholic, such as nonalcoholic beer. Services for the production of alcohol for own consumption are also included in this division.

Division 02 excludes alcoholic beverages purchased for immediate consumption in hotels, restaurants, cafes, bars, kiosks, street vendors, automatic vending machines, and so on (11.1.1).

02.1 Alcoholic Beverages

The beverages classified here include low or nonalcoholic beverages which generally contain some alcohol.

02.1.1 Spirits and Liquors (ND)

Includes:

  • Eaux-de-vie, liqueurs, and other spirits with high alcohol content

  • Mead

  • Pomace brandy, such as pisco, grappa, marc, and so on

  • Aperitifs other than wine-based aperitifs

Excludes:

  • Wine-based aperitifs (02.1.2.1, 02.1.2.2)

02.1.1.0 Spirits and Liquors (ND)

Includes:

  • Eaux-de-vie, liqueurs, and other spirits with high alcohol content

  • Mead

  • Pomace brandy, such as pisco, grappa, marc, and so on

  • Aperitifs other than wine-based aperitifs

Excludes:

  • Wine-based aperitifs (02.1.2.1, 02.1.2.2)

02.1.2 Wine (ND)

Includes:

  • Wine, cider, and perry, including sake

  • Wine-based aperitifs, fortified wines, champagne, and other sparkling wines

  • Ice wine

  • Low and nonalcoholic wine

  • Wine-based aperitifs

02.1.2.1 Wine from Grapes (ND)

Includes:

  • Wine from grapes

  • Fortified wines, such as vermouth, sherry, port wine

  • Champagne and other sparkling wines from grapes

  • Ice wine

  • Low and nonalcoholic wine

  • Wine-based aperitifs

02.1.2.2 Wine from Other Sources (ND)

Includes:

  • Cider and perry, including sake

02.1.3 Beer (ND)

Includes:

  • All kinds of beer, such as ale, lager, stout, and porter

  • Low-alcoholic beer and nonalcoholic beer

02.1.3.0 Beer (ND)

Includes:

  • All kinds of beer, such as ale, lager, stout, and porter

  • Low-alcoholic beer and nonalcoholic beer

02.1.9 Other Alcoholic Beverages (ND)

Includes:

  • Mixed alcoholic-based drinks, such as soda water or mineral water-based mixed alcoholic drinks (alcopops)

  • Shandy, cola beer, radler

02.1.9.0 Other Alcoholic Beverages (ND)

Includes:

  • Mixed alcoholic-based drinks, such as soda water or mineral water-based mixed alcoholic drinks (alcopops)

  • Shandy, cola beer, Radler

02.2 Alcohol Production Services

Services purchased for the processing of primary products provided by households to produce alcohol for own final consumption by households.

02.2.1 Alcohol Production Services (S)

Services purchased for the processing of primary products provided by households to produce alcohol for own final consumption by households.

Includes:

  • Fruit/vegetable crushing and pressing services for the production of alcoholic beverages

  • Distilling and fermentation services

  • Brewing services

  • Aging and bottling services

02.2.1.0 Alcohol Production Services (S)

Services purchased for the processing of primary products provided by households to produce alcohol for own final consumption by households.

Includes:

  • Fruit/vegetable crushing and pressing services for the production of alcoholic beverages

  • Distilling and fermentation services

  • Brewing services

  • Aging and bottling services

02.3 Tobacco

This group covers all purchases of tobacco and tobacco products by households, including purchases of tobacco in restaurants, cafés, bars, service stations, and so on due to these venues not adding value, or a service, to the tobacco products sold. The consumption of tobacco through shisha or hookah pipes in these venues, such as restaurants, cafés, or bars, is included in Division 11 as the venue does provide a service. Electronic cigarette refills are included in this group—even though they do not contain tobacco—as they are a substitute for smoking tobacco products.

02.3.0 Tobacco (ND)

Includes:

  • Cigarettes, cigarette tobacco, and tobacco leaf

  • Cigarette papers and single-use flters that are consumed with the cigarette

  • Cigars, pipe tobacco, chewing tobacco or snuff

  • Refills for electronic cigarettes with or without nicotine

  • Tobacco that is consumed with a shisha or hookah pipes if consumed at home

  • Tobacco that is purchased in bars and restaurants, provided that a service charge is not applied

Excludes:

  • Tobacco that is consumed with a shisha or hookah pipes in restaurants, cafés, shisha lounges (11.1.1)

  • Other smokers’ articles; electronic cigarette devices (13.2.9.1)

02.3.0.1 Cigarettes (ND)

Includes:

  • Cigarettes

  • Cigarettes that are purchased in bars and restaurants, provided that a service charge is not applied

02.3.0.2 Cigars (ND)

Includes:

  • Cigars

02.3.0.9 Other Tobacco Products (ND)

Includes:

  • Pipe tobacco, chewing tobacco, hookah blends, snus or snuff

  • Cigarette tobacco and tobacco leaf

  • Cigarette papers and single-use filters that are consumed with the cigarette

  • Refills for electronic cigarettes with or without nicotine

  • Tobacco that is consumed with a shisha or hookah pipes if consumed at home

Excludes:

  • Tobacco that is consumed with a shisha or hookah pipes in restaurants, cafés, shisha lounges (11.1.1)

  • Other smokers’ articles; electronic cigarette devices (13.2.9.1)

02.4 Narcotics

This group covers all narcotics purchased by households, both legal and illegal.

02.4.0 Narcotics (ND)

Includes:

  • Marijuana, opium, cocaine, and their derivatives

  • Other vegetable-based narcotics, such as cola nuts, kava, chat, betel leaves, psilocybin mushroom, and betel nuts

  • Other narcotics including chemicals and man-made drugs

Excludes:

  • Prepared joints and pipes containing marijuana, hashish or similar purchased in coffee shops for immediate consumption (11.1.1.1)

  • Narcotics for medicinal purpose (06.1.1)

02.4.0.0 Narcotics (ND)

Includes:

  • Marijuana, opium, cocaine, and their derivatives

  • Other vegetable-based narcotics, such as cola nuts, kava, chat, betel leaves, psilocybin mushroom, and betel nuts

  • Other narcotics including chemicals and man-made drugs

Excludes:

  • Prepared joints and pipes containing marijuana, hashish or similar purchased in coffee shops for immediate consumption (11.1.1)

  • Narcotics for medicinal purpose (06.1.1.1)

03 Clothing and Footwear

Division 03 covers all clothing materials, garments, articles and accessories, footwear, and related services including cleaning, repair, and hire of clothing and footwear. The purchase of second-hand clothing and footwear should be included in the same classes as the new articles as the purpose is the same. Unisex garments and footwear should be classified according to the gender of the person wearing them.

Division 03 excludes sport—and game-specific sports— and footwear (09.2.2.1).

03.1 Clothing

The clothing classified in this group covers materials purchased to be transformed into clothing, garments and accessories, and services related to clothing.

Made-to-measure refers to the service of providing custom-fitted clothing when the retailer supplies all of the materials and is included in 03.1.2 Garments as the cost of the garment usually outweighs the cost of the service. Tailoring refers to creating clothing garments where the main material is supplied by the customer and is classified in 03.1.4. Cleaning, repair, tailoring, and hire of clothing as the service is the higher expenditure.

03.1.1 Clothing Materials (SD)

Includes:

  • Clothing materials of natural fibers, of man-made fibers and of their mixtures

  • Leather, fur, fusible webbing, wadding, and felt filling for making wearing apparel

Excludes:

  • Furnishing fabrics (05.2.1.1)

03.1.1.0 Clothing Materials (SD)

Includes:

  • Clothing materials of natural fibers, of man-made fibers, and of their mixtures

  • Leather, fur, fusible webbing, wadding, and felt filling for making wearing apparel

Excludes:

  • Furnishing fabrics (05.2.1.1)

03.1.2 Garments (SD)

Includes:

  • Garments for men or boys, women or girls, and infants, either ready-to-wear or made-to-measure, in all materials (including leather, furs, plastics, and rubber), for everyday wear, for sport, or for work

  • Capes, overcoats, raincoats, anoraks, parkas, blousons, jackets, trousers, waistcoats, suits, costumes, dresses, skirts, and so on

  • Shirts, blouses, pullovers, sweaters, cardigans, shorts, swimsuits, tracksuits, jogging suits, sweatshirts, T-shirts, leotards, and so on

  • Vests, underpants, socks, stockpiles, tights, petticoats, brassières, knickers, slips, girdles, corsets, body stockpiles, and so on

  • Pajamas, nightshirts, nightdresses, housecoats, dressing gowns, bathrobes, and so on

  • Traditional garments

Excludes:

  • Tailoring services when the customer supplies the material (03.1.4.2)

  • Articles of medical hosiery, such as elasticated stockpiles (06.1.2.2)

  • Babies’ napkins (13.2.9.1)

03.1.2.1 Garments for Men or Boys (SD)

Includes:

  • Garments for men or boys, either ready-to-wear or made-to-measure, in all materials (including leather, furs, plastics, and rubber), for everyday wear, for sport, or for work

  • Capes, overcoats, raincoats, anoraks, parkas, jackets, trousers, waistcoats, suits, costumes, and so on

  • Shirts, pullovers, sweaters, cardigans, shorts, swimsuits, tracksuits, jogging suits, sweatshirts, T-shirts, leotards, and so on

  • Traditional garments

  • Vests, underpants, socks, and so on

  • Pajamas, dressing gowns, bathrobes, and so on

Excludes:

  • Garments for infants (0 to under 2 years) (03.1.2.3)

  • Tailoring services when the customer supplies the material (03.1.4.2)

03.1.2.2 Garments for Women or Girls (SD)

Includes:

  • Garments for women or girls, either ready-to-wear or made-to-measure, in all materials (including leather, furs, plastics, and rubber), for everyday wear, for sport, or for work

  • Capes, overcoats, raincoats, anoraks, parkas, blousons, jackets, trousers, waistcoats, suits, costumes, dresses, skirts, and so on

  • Shirts, blouses, pullovers, sweaters, cardigans, shorts, swimsuits, tracksuits, jogging suits, sweatshirts, T-shirts, leotards, and so on

  • Traditional garments

  • Vests, underpants, socks, stockpiles, tights, petticoats, brassières, knickers, slips, girdles, corsets, body stockpiles, and so on

  • Pajamas, nightshirts, nightdresses, housecoats, dressing gowns, bathrobes, and so on

Excludes:

  • Garments for infants (0 to under 2 years) (03.1.2.3)

  • Tailoring services when the customer supplies the material (03.1.4.2)

03.1.2.3 Garments for Infants (0 to under 2 Years) (SD)

Includes:

  • Garments for infants and babies (0 to under 2 years), either ready-to-wear or made-to-measure, in all materials

  • Raincoats, anoraks, parkas, blousons, jackets, trousers, waistcoats, suits, costumes, dresses, skirts, and so on

  • Vests, underpants, socks, stockpiles, tights, and so on

  • Pajamas, nightshirts, nightdresses, dressing gowns, bathrobes, and so on

Excludes:

  • Tailoring services when the customer supplies the material (03.1.4.2)

03.1.2.4 School Uniforms (SD)

Includes:

  • School uniforms

03.1.3 Other Articles of Clothing and Clothing Accessories (SD)

Includes:

  • Ties, handkerchiefs, scarves, gloves, mittens, muffs, belts, braces, aprons, smocks, bibs, sleeve protectors, hats, caps, berets, bonnets, and so on

  • Sewing threads, knitting yarns, and accessories for making clothing, such as buckles, buttons, press studs, zip fasteners, ribbons, laces, trimmings, and so on

Includes also:

  • Working gloves

Excludes:

  • Pins, safety pins, sewing needles, knitting needles, thimbles; rubber gloves and other articles made of rubber; gardening gloves (05.6.1.9)

  • Protective headgear for sports; other protective gear for sports, such as life jackets, boxing and other sporting gloves, body padding, belts, supports, and so on (09.2.2.1)

  • Paper handkerchiefs (13.1.2.0)

  • Watches, jewelry, cuff links, tiepins (13.2.1.1)

  • Walking sticks and canes, umbrellas and parasols, fans, and keyrings (13.2.9.1)

03.1.3.1 Other Articles of Clothing (SD)

Includes:

  • Ties, handkerchiefs, scarves, gloves, mittens, muffs, belts, braces, aprons, smocks, bibs, sleeve protectors, hats, caps, berets, bonnets, and so on

Includes also:

  • Working gloves

Excludes:

  • Pins, safety pins, sewing needles, knitting needles, thimbles; rubber gloves and other articles made of rubber; and gardening gloves (05.6.1.9)

  • Protective headgear for sports; other protective gear for sports, such as life jackets, boxing and other sporting gloves, body padding, belts, supports, and so on (09.2.2.1)

  • Paper handkerchiefs (13.1.2.0)

  • Watches, jewelry, cuff links, tiepins (13.2.1.1)

  • Walking sticks and canes, umbrellas and parasols, fans, keyrings (13.2.9.1)

03.1.3.2 Clothing Accessories (SD)

Includes:

  • Sewing threads, knitting yarns, and accessories for making clothing, such as buckles, buttons, press studs, zip fasteners, ribbons, laces, trimmings, and so on

03.1.4 Cleaning, Repair, Tailoring, and Hire of Clothing (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Dry-cleaning, laundering, and dyeing of garments

  • Darning, mending, repair, and altering of garments

  • Tailoring services when the customer supplies the material

  • Hire of garments

Excludes:

  • Materials, threads, and other accessories purchased by households with the intention of undertaking the repairs themselves (03.1.1.0, 03.1.3.2)

  • Made-to-measure clothing (03.1.2.1, 03.1.2.2, 03.1.2.3, 03.1.2.4)

  • Repair of household linen and other household textiles (05.2.2.0)

  • Dry-cleaning, laundering, dyeing and hire of household linen, and other household textiles (05.6.2.9)

03.1.4.1 Cleaning of Clothing (S)

Includes:

  • Dry-cleaning, laundering, and dyeing of garments

Excludes:

  • Dry-cleaning, laundering, dyeing, and hire of household linen, and other household textiles (05.6.2.9)

03.1.4.2 Repair, Tailoring, and Hire of Clothing (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Darning, mending, repair, and altering of garments

  • Tailoring services when the customer supplies the material

  • Hire of garments

Excludes:

  • Materials, threads, and other accessories purchased by households with the intention of undertaking the repairs themselves (03.1.1.0, 03.1.3.2)

  • Made-to measure clothing (03.1.2.1, 03.1.2.2, 03.1.2.3, 03.1.2.4)

  • Repair of household linen and other household textiles (05.2.2.0)

03.2 Footwear

This group covers all general footwear, split by footwear for men, footwear for women, and footwear for infants and children, and footwear-related services. Sport-specific footwear is classified in Division 09 Recreation and Culture.

03.2.1 Shoes and Other Footwear (SD)

Includes:

  • All footwear for men, women, infants, and children either ready-to-wear or made-to-measure including sports footwear suitable for everyday or leisure wear (shoes for jogging, cross-training, tennis, basketball, boating, and so on)

  • Gaiters and similar articles; shoelaces; parts of footwear, such as heels, soles, and so on, purchased by households with the intention of repairing footwear themselves

Excludes:

  • Polishes, creams, and other shoe-cleaning articles (05.6.1.1)

  • Orthopedic footwear (06.1.3.3)

  • Game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on); shin guards, cricket pads, and other such protective apparel for sport (09.2.2.1)

03.2.1.1 Footwear for Men (SD)

Includes:

  • All footwear for men either ready-to-wear or made-to-measure

Includes also:

  • Gaiters and similar articles

  • Shoelaces

  • Parts of footwear, such as heels, soles, and so on, purchased by households with the intention of repairing footwear themselves

  • Sports footwear suitable for everyday or leisure wear (shoes for jogging, cross-training, tennis, basketball, boating, and so on)

Excludes:

  • Cleaning, repair, and hire of footwear (03.2.2.0)

  • Polishes, creams, and other shoe-cleaning articles (05.6.1.1)

  • Orthopedic footwear (06.1.3.3)

  • Game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on); shin guards, cricket pads, and other such protective apparel for sport (09.2.2.1)

03.2.1.2 Footwear for Women (SD)

Includes:

  • All footwear for women either ready-to-wear or made-to-measure

Includes also:

  • Gaiters and similar articles

  • Shoelaces

  • Parts of footwear, such as heels, soles, and so on, purchased by households with the intention of repairing footwear themselves

  • Sports footwear suitable for everyday or leisure wear (shoes for jogging, cross-training, tennis, basketball, boating, and so on)

Excludes:

  • Cleaning, repair, and hire of footwear (03.2.2.0)

  • Polishes, creams, and other shoe-cleaning articles (05.6.1.1)

  • Orthopedic footwear (06.1.3.3)

  • Game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on); shin guards, cricket pads, and other such protective apparel for sport (09.2.2.1)

03.2.1.3 Footwear for Infants and Children (SD)

Includes:

  • All footwear for infants and children (under 13 years) either ready-to-wear or made-to-measure

Includes also:

  • Gaiters and similar articles

  • Shoelaces

  • Parts of footwear, such as heels, soles, and so on, purchased by households with the intention of repairing footwear themselves

  • Sports footwear suitable for everyday or leisure wear (shoes for jogging cross-training, tennis, basketball, boating, and so on)

  • Baby’s booties made of fabric or sheepskin

Excludes:

  • Cleaning, repair, and hire of footwear (03.2.2.0)

  • Polishes, creams, and other shoe-cleaning articles (05.6.1.1)

  • Orthopedic footwear (06.1.3.3)

  • Game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on); shin guards, cricket pads, and other such protective apparel for sport (09.2.2.1)

03.2.2 Cleaning, Repair, and Hire of Footwear (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of footwear

  • Shoe-cleaning services

  • Dyeing of shoes

  • Hire of footwear

Excludes:

  • Parts of footwear, such as heels, soles, and so on, purchased by households with the intention of undertaking the repair themselves (03.2.1)

  • Polishes, creams, and other shoe-cleaning articles (05.6.1.1)

  • Hire and repair of game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on) (09.4.4.0)

03.2.2.0 Cleaning, Repair, and Hire of Footwear (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of footwear

  • Shoe-cleaning services

  • Dyeing of shoes

  • Hire of footwear

Excludes:

  • Parts of footwear, such as heels, soles, and so on, purchased by households with the intention of undertaking the repair themselves (03.2.1)

  • Polishes, creams, and other shoe-cleaning articles (05.6.1.1)

  • Hire and repair of game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on) (09.4.4.0)

04 Housing, Water, Electricity, Gas, and Other Fuels

The “Housing, water, electricity, gas, and other fuels” division comprises goods and services for the use of the house or dwelling, its maintenance and repair, the supply of water and miscellaneous services related to the dwelling, and energy used for heating or cooling. Actual rentals and imputed rentals (according to national accounts [SNA 2008]) for main or secondary residences are classified in groups 04.1 and 04.2, respectively.

Maintenance, repair, and security of the dwelling include materials for repair purchased with the intention of undertaking the repair and maintenance themselves, as well as the repair services purchased from enterprises. It should be noted that only expenditures on materials and services for minor repairs are covered by 04.3. Expenditures on materials and services for major maintenance and repair are not part of individual consumption expenditures of households and are thus out of the scope of the classification. This refers especially to owner-occupiers; tenants will not make such expenditures on major maintenance and repair at all as they are not the owner of the dwelling.

04.1 Actual Rentals for Housing

Rentals normally include payment for the use of the land on which the property stands, the dwelling occupied, the fixtures and fittings for heating, plumbing, lighting, and so on, and, in the case of a dwelling let furnished, the furniture.

Rentals also include payment for the use of a garage to provide parking in connection with the dwelling.

The garage does not have to be physically contiguous to the dwelling, nor does it have to be leased from the same landlord.

Rentals do not include payment for the use of garages or parking spaces not providing parking in connection with the dwelling (07.2.4). Nor do they include charges for water supply (04.4.1), refuse collection (04.4.2), and sewage collection (04.4.3); coproprietor charges for caretaking, gardening, stairwell cleaning, heating and lighting, maintenance of lifts and refuse disposal chutes, and so on in multi-occupied buildings (04.4.4); charges for electricity (04.5.1) and gas (04.5.2); and charges for heating and hot water supplied by district heating plants (04.5.5).

Each household has a principal dwelling (sometimes also designated as main or primary home), usually defined with reference to time spent there, whose location defines the country of residence and place of usual residence of this household and of all its members. All other dwellings (owned or leased by the household) are considered secondary dwellings.

Includes:

  • Rentals actually paid by tenants or subtenants occupying unfurnished or furnished premises as their main residence

Includes also:

  • Payments by households occupying a room in a hotel or boarding house as their main residence

Excludes:

  • Garage rentals to provide parking and storage in connection with the dwelling (04.1.2.2)

  • Accommodation services of educational establishments and hostels (11.2.0.9)

  • Retirement homes for elderly persons (13.3.0.2)

04.1.1 Actual Rentals Paid by Tenants for Main Residence (S)

Includes:

  • Rentals actually paid by tenants or subtenants occupying unfurnished or furnished premises as their main residence

Includes also:

  • Payments by households occupying a room in a hotel or boarding house as their main residence

Excludes:

  • Garage rentals to provide parking and storage in connection with the dwelling (04.1.2.2)

  • Accommodation services of educational establishments and hostels (11.2.0.9)

  • Retirement homes for elderly persons (13.3.0.2)

04.1.1.0 Actual Rentals Paid by Tenants for Main Residence (S)

Includes:

  • Rentals actually paid by tenants or subtenants occupying unfurnished or furnished premises as their main residence

Includes also:

  • Payments by households occupying a room in a hotel or boarding house as their main residence

Excludes:

  • Garage rentals to provide parking and storage in connection with the dwelling (04.1.2.2)

  • Accommodation services of educational establishments and hostels (11.2.0.9)

  • Retirement homes for elderly persons (13.3.0.2)

04.1.2 Other Actual Rentals (S)

Includes:

  • Rentals actually paid for secondary residences

  • Rentals of self-storage units

  • Garage rentals

Excludes:

  • Accommodation services of holiday villages and holiday centers (11.2.0.2)

04.1.2.1 Actual Rentals Paid by Tenants for Secondary Residences (S)

Includes:

  • Rentals actually paid for secondary residences

Excludes:

  • Accommodation services of holiday villages and holiday centers (11.2.0.2)

04.1.2.2 Garage Rentals and Other Rentals Paid by Tenants (S)

Rentals also include payment for the use of a garage to provide parking and storage in connection with the dwelling. The garage or storage does not have to be physically contiguous to the dwelling, nor does it have to be leased from the same landlord.

Includes:

  • Garage rentals in connection with the dwelling

  • Rentals of self-storage units

Excludes:

  • Payment for the use of garages or parking spaces not providing parking in connection with the dwelling (07.2.4.1)

  • (Long-term) storage of furniture and other personal effects (07.4.9.1)

04.2 Imputed Rentals for Housing

Persons who own the dwellings in which they live are treated as owning unincorporated enterprises that produce housing services that are consumed by the household to which the owner belongs. The housing services produced are deemed to be equal in value to the rentals that would be paid on the market for accommodation of the same size, quality, and type. The imputed values of the housing services are recorded as final consumption expenditures of the owners. Imputed rentals normally include value for the use of the land on which the property stands, the dwelling occupied, and the fixtures and fittings for heating, plumbing, lighting, and so on.

Imputed rentals also include the use of a garage to provide parking in connection with the dwelling. The garage does not have to be physically contiguous to the dwelling.

Imputed rentals do not include payment for the use of garages or parking spaces not providing parking in connection with the dwelling (07.2.4). Nor do they include charges for water supply (04.4.1), refuse collection (04.4.2), and sewage collection (04.4.3); coproprietor charges for care-taking, gardening, stairwell cleaning, heating and lighting, maintenance of lifts and refuse disposal chutes, and so on in multi-occupied buildings (04.4.4); charges for electricity (04.5.1) and gas (04.5.2); and charges for heating and hot water supplied by district heating plants (04.5.5).

04.2.1 Imputed Rentals of Owner-Occupiers for Main Residence (S)

Includes:

  • Imputed rentals of owners occupying their main residence

04.2.1.0 Imputed Rentals of Owner-Occupiers for Main Residence (S)

Includes:

  • Imputed rentals of owners occupying their main residence

04.2.2 Other Imputed Rentals (S)

Includes:

  • Imputed rentals for secondary residences

  • Imputed garage rentals in connection with the dwelling

  • Imputed rentals of storage units

04.2.2.0 Other Imputed Rentals (S)

Includes:

  • Imputed rentals for secondary residences

  • Imputed garage rentals in connection with the dwelling

  • Imputed rentals of storage units

04.3 Maintenance, Repair, and Security of the Dwelling

Maintenance and repair of dwellings are distinguished by two features: first, they are activities that have to be undertaken regularly in order to maintain the dwelling in good working order; second, they do not change the dwelling’s performance, capacity, or expected service life.

There are two types of maintenance and repair of dwellings: those which are minor, such as interior decoration and repairs to fittings, and which are commonly carried out by both tenants and owners; and those which are major, such as replastering walls or repairing roofs, and which are carried out by owners only.

Only expenditures which tenants and owner-occupiers incur on materials and services for minor maintenance and repair are part of individual consumption expenditure of households.

Expenditures which owner-occupiers incur on materials and services for major maintenance and repair are not part of individual consumption expenditure of households.

Purchases of materials made by tenants or owner-occupiers with the intention of undertaking the maintenance or repair themselves should be shown under (04.3.1). If tenants or owner-occupiers pay an enterprise to carry out the maintenance or repair, the total value of the service, including the costs of the materials used, should be shown under (04.3.2) unless the materials are separately invoiced.

04.3.1 Materials for the Maintenance and Repair of the Dwelling (ND)

Includes:

  • Products and materials, such as paints and varnishes, renderings, wallpapers, fabric wall coverings, window panes, plaster, cement, putty, wallpaper pastes, and so on, purchased for minor maintenance and repair of the dwelling

  • Small plumbing items (pipes, taps, joints, and so on), surfacing materials (floorboards, ceramic tiles, and so on) and brushes and scrapers for paint, varnish, and wallpaper

  • Fitted carpets and linoleum

  • Door fittings, power sockets, wiring flex

  • Small equipment for surveillance/security for the individual dwelling

  • Door phone for dwelling

  • Fire extinguishers

Excludes:

  • Hand tools (05.5.2.1)

  • Lamp bulbs (05.5.2.2)

  • Brooms, scrubbing brushes, dusting brushes, and cleaning products (05.6.1.1)

  • Products, materials, and fixtures used for major maintenance and repair (intermediate consumption) or for extension and conversion of the dwelling (capital formation)

04.3.1.1 Materials for the Maintenance Repair of the Dwelling (ND)

Includes:

  • Products and materials, such as paints and varnishes, renderings, wallpapers, fabric wall coverings, window panes, plaster, cement, putty, wallpaper pastes, and so on, purchased for minor maintenance and repair of the dwelling

  • Small plumbing items (pipes, taps, joints, and so on), surfacing materials (floorboards, ceramic tiles, and so on) and brushes and scrapers for paint, varnish, and wallpaper

  • Fitted carpets and linoleum

  • Door fittings, power sockets, wiring flex

Excludes:

  • Hand tools (05.5.2.1)

  • Lamp bulbs (05.5.2.2)

  • Brooms, scrubbing brushes, dusting brushes, and cleaning products (05.6.1.1)

  • Products, materials, and fixtures used for major maintenance and repair (intermediate consumption) or for extension and conversion of the dwelling (capital formation)

04.3.1.2 Security Equipment (SD)

Includes:

  • Small equipment for surveillance/security for the individual dwelling (smoke detector, security alarms, security/surveillance cameras)

  • Door phone for dwelling

  • Fire extinguishers

04.3.2 Services for the Maintenance, Repair, and Security of the Dwelling (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Services of plumbers, electricians, carpenters, glaziers, painters, decorators, floor polishers, and so on engaged for minor maintenance and repair of the dwelling

  • Locksmith services

  • Service of laying fitted carpets and linoleum

  • Security services

Excludes:

  • Separate purchases of materials made by households with the intention of undertaking the maintenance or repair themselves (04.3.1.1)

  • Locksmith services for cars (07.2.3.0)

  • Bodyguards (13.9.0.9)

  • Services engaged for major maintenance and repair (intermediate consumption) or for extension and conversion of the dwelling (capital formation)

04.3.2.0 Services for the Maintenance, Repair, and Security of the Dwelling (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Services of plumbers, electricians, carpenters, glaziers, painters, decorators, floor polishers, and so on engaged for minor maintenance and repair of the dwelling

  • Locksmith services

  • Service of laying fitted carpets and linoleum

  • Security services

Excludes:

  • Separate purchases of materials made by households with the intention of undertaking the maintenance or repair themselves (04.3.1.1)

  • Locksmith services for cars (07.2.3.0)

  • Bodyguards (13.9.0.9)

  • Services engaged for major maintenance and repair (intermediate consumption) or for extension and conversion of the dwelling (capital formation)

04.4 Water Supply and Miscellaneous Services Relating to the Dwelling

04.4.1 Water Supply (ND)

Includes:

  • Water supply

Includes also:

  • Associated expenditure, such as rental of meters, reading of meters, standing charges, and so on

Excludes:

  • Drinking water sold in bottles or containers (01.2.5.0)

  • Hot water or steam purchased from district heating plants (04.5.5.0)

04.4.1.1 Water Supply through Network Systems (ND)

Includes:

  • All charges usually included in the bills paid by households, including meters installations and rentals, volumetric or fix charge for water consumption through mains, except steam, and hot water (on a fee and contract basis)

Includes also:

  • Associated expenditure, such as rental of meters, reading of meters, standing charges, and so on

Excludes:

  • Drinking water sold in bottles or containers (01.2.5.0)

  • Hot water or steam purchased from district heating plants (04.5.5.0)

04.4.1.2 Water Supply through Basic Systems (ND)

Includes:

  • Services paid at a public stand post/fountain and to a water vendor (for example, by tanker truck, cart)

Excludes:

  • Drinking water sold in bottles or containers (01.2.5.0)

04.4.2 Refuse Collection (S)

Includes:

  • Refuse collection and disposal

  • Fees for recycling paid by households

04.4.2.0 Refuse Collection (S)

Includes:

  • Refuse collection and disposal

  • Fees for recycling paid by households

04.4.3 Sewage Collection (S)

Sewer systems, also known as sanitary sewer systems, are (most often) an underground carriage system (most usually waterborne) specifically for transporting sewage from houses and commercial buildings and industries, through pipes or other conduits to treatment facilities or disposal sites. They are part of an overall system called a sewerage or sewage system.

Sewage may be treated to reduce water pollution before discharge to surface waters. Sanitary sewers serving mixed urban agglomerations (including commercial and industrial areas) carry “municipal wastewater” which comprises a mix from all sources including in some cases, surface runoff, and stormwater.

“Separate” sewer systems are designed to transport sewage alone. In municipalities served by sewers, separate storm drains may convey surface runoff directly to surface waters. “Separate” sewers are distinguished from “combined sewers,” which combine sewage with stormwater runoff in the same conduit. Sanitary sewer systems are often preferred because they avoid the production of large volumes of combined wastewater flows. However, in certain circumstances, they may be preferred and reduce costs.

Basic sanitation systems are improved sanitation facilities where excreta are contained or disposed of onsite. These are generally where fecal (and other) material is collected in a pit or septic tanks or are composting toilets. Their purpose is to hygienically separate human excreta from human contact.

Includes:

  • Sewage collection, emptying cesspools and disposal

04.4.3.1 Sewage Collection through Sewer Systems (S)

Includes:

  • Services paid to the sanitation or water provider or municipality for the collection, transport, and disposal of sewage through sewer systems

04.4.3.2 Sewage Collection through Basic Sanitation Systems (S)

Includes:

  • Services paid to empty and evacuate liquid waste (excreta and wastewater) from onsite

  • Sanitation systems (pit latrines, septic tanks, and soak pits) and clean them

  • Payments for using communal/commercial collective toilets

04.4.4 Other Services Relating to the Dwelling N.E.C. (S)

Includes:

  • Coproprietor charges for caretaking, gardening, stairwell cleaning, heating and lighting, maintenance of lifts and refuse disposal chutes, pool cleaning, and so on in multi-occupied buildings

  • Road and sidewalk cleaning and chimney sweeping

  • Measuring background radiation and content of harmful substances in dwellings

  • Landscaping and cleaning of grounds surrounding the dwelling

  • Snow removal

Excludes:

  • Household services, such as window cleaning, disinfecting, fumigation, and pest extermination (05.6.2.9)

  • Bodyguards (13.9.0.9)

04.4.4.1 Maintenance Charges in Multi-Occupied Buildings (S)

Includes:

  • Coproprietor charges for caretaking, gardening, stairwell cleaning, heating and lighting, maintenance of lifts and refuse disposal chutes, pool cleaning, and so on, in multi-occupied buildings

Excludes:

  • Household services, such as window cleaning, disinfecting, fumigation, and pest extermination (05.6.2.9)

  • Bodyguards (13.9.0.9)

04.4.4.9 Other Services Related to Dwelling (S)

Includes:

  • Road and sidewalk cleaning and chimney sweeping

  • Measuring background radiation and content of harmful substances in dwellings

  • Landscaping and cleaning of grounds surrounding the dwelling

  • Snow removal

04.5 Electricity, Gas, and Other Fuels

04.5.1 Electricity (ND)

Includes:

  • Electricity from all sources (coal, solar, hydro, and so on)

Includes also:

  • Associated expenditure, such as rental of meters, reading of meters, standing charges, and so on

  • Charges for self-produced energy (in some countries, households producing more electricity than what they consume are charged storage costs if they feed the surplus electricity back into the electricity supply grid)

04.5.1.0 Electricity (ND)

Includes:

  • Electricity from all sources (coal, solar, hydro, and so on)

Includes also:

  • Associated expenditure, such as rental of meters, reading of meters, standing charges, and so on

  • Charges for self-produced energy (in some countries, households producing more electricity than what they consume are charged storage costs if they feed the surplus electricity back into the electricity supply grid)

04.5.2 Gas (ND)

Includes:

  • Town gas and natural gas

  • Liquefied hydrocarbons (butane, propane, and so on)

Includes also:

  • Associated expenditure, such as rental of meters, reading of meters, rental or purchase of storage containers, standing charges, and so on

04.5.2.1 Natural Gas through Networks (ND)

Includes:

  • Natural gas and town gas delivered through gas networks

  • Associated expenditure, such as rental of meters, reading of meters, standing charges, and so on

04.5.2.2 Liquefied Hydrocarbons (ND)

Includes:

  • Liquefied hydrocarbons (butane, propane, and so on) delivered in storage containers

  • Associated expenditure, such as rental or purchase of storage containers, standing charges, and so on

Excludes:

  • Delivery fees of liquefied hydrocarbons (butane, propane, and so on) when charged separately (07.4.9.2)

  • Camping gas in cylinder less than 50 kilograms (09.2.2.2)

04.5.3 Liquid Fuels (ND)

Includes:

  • Domestic heating, lighting, and cooking fuel oils

  • Biofuels for domestic use

  • Alcohol for fireplaces

Excludes:

  • Liquid fuels for transportation (07.2.2.1, 07.2.2.2, 07.2.2.3)

04.5.3.0 Liquid Fuels (ND)

Includes:

  • Domestic heating, lighting, and cooking fuel oils

  • Biofuels for domestic use

  • Alcohol for fireplaces

Excludes:

  • Liquid fuels for transportation (07.2.2.1, 07.2.2.2, 07.2.2.3)

04.5.4 Solid Fuels (ND)

Includes:

  • Coal, coke, briquettes, firewood, charcoal, peat, and the like, biomass (wheat, nutshell, and so on) and dry animal dung

04.5.4.1 Coal, Coal Briquettes, and Peat (ND)

Includes:

  • Coal

  • Coal briquettes

  • Peat

  • Peat briquettes

04.5.4.2 Wood Fuel, Including Pellets and Briquettes (ND)

Includes:

  • Fuelwood, in logs, in billets, in twigs, in faggots, or in similar forms

  • Wood in chips or particles

  • Nonagglomerated sawdust and wood waste and scrap

  • Sawdust and wood waste and scrap agglomerated in briquettes, pellets, or similar forms

04.5.4.3 Charcoal (ND)

Whether or not agglomerated, in the form of blocks, sticks or in granules or powder, or agglomerated with tar or other substances in briquettes, tablets, balls, and so on.

Includes:

  • Wood and bamboo charcoal

  • Shell or nut charcoal

  • Charcoal briquettes

Includes also:

  • Charcoal briquettes for barbecue

04.5.4.9 Other Solid Fuels (ND)

Includes:

  • Coke

  • Other briquettes

  • Other biomass n.e.c., such as waste from agricultural production (for example, wheat and nutshells) and dry animal dung

04.5.5 Other Energy for Heating and Cooling (ND)

Includes:

  • Hot water and steam purchased from district heating plants

  • Ice used for cooling and refrigeration purposes

Includes also:

  • Associated expenditure, such as rental of meters, reading of meters, standing charges, and so on

Excludes:

  • Ice cubes (01.1.8.6)

04.5.5.0 Other Energy for Heating and Cooling (ND)

Includes:

  • Hot water and steam purchased from district heating plants

  • Ice used for cooling and refrigeration purposes

Includes also:

  • Associated expenditure, such as rental of meters, reading of meters, standing charges, and so on

Excludes:

  • Ice cubes (01.1.8.6)

05 Furnishings, Household Equipment, and Routine Household Maintenance

Division 05 covers a wide range of products for the equipment of the house or dwelling and the household durables, semi-durables, and nondurables as well as some kind of household services. Division 05 includes all kinds of furniture, including lighting equipment, household textiles, glassware, tableware, and household utensils, major and smaller electric household appliances, tools and equipment for house and garden, and goods for the routine household maintenance.

Division 05 also includes repair, installation, and rental services of the goods classified in Division 05.

Domestic services by paid staff in private service, supplied by enterprises or self-employed persons are also included. Furthermore, window cleaning and disinfecting services, as well as dry-cleaning and laundering of household textiles and carpets, are classified in Division 05.

05.1 Furniture, Furnishings, and Loose Carpets

05.1.1 Furniture, Furnishings, and Loose Carpets (D)

Includes:

  • Sofas, couches, tables, chairs, cupboards, chests of drawers and bookshelves, hanger stands, and coat stands

  • Bunk bed, baby furniture, such as cradles, highchairs, and playpens

  • Beds, mattresses, base mattresses (tatamis), wardrobes, and bedside tables

  • Kitchen tables and chairs, cupboards, and surfaces

  • Furniture primarily for bathroom use

  • Furniture primarily for garden use

  • Wrought iron benches and tables, arbors

  • Small garden houses to store garden tools and machines

  • Camping furniture

  • Lighting equipment, such as ceiling lights, standard lamps, globe lights and bedside lamps, light, and LED strings

Includes also:

  • Inflatable sofas, armchairs, and beds

  • Pieces of furniture specifically made for the customer

  • Rugs (loose) carpets

  • Pictures, sculptures, engravings, tapestries, and other art objects including reproductions of works of art and other ornaments

  • Statuettes and other decorative articles of porcelain and crystal glass

  • Wall clocks, alarm clocks, travel clocks

  • Screens, folding partitions, nontextile blinds, mirrors, candleholders, and candlesticks

  • Decorative materials for gardens

  • Leather and fur for upholstery and room decorating

Excludes:

  • Decorative materials for gardens (05.1.1.4)

  • Repair and hire of household, garden, and camping furniture and lighting equipment (05.1.2.0)

  • Bedding (bed linen) and sunshades (05.2.1.2, 05.2.1.9)

  • Safes (05.3.1.9)

  • Ornamental glass and ceramic articles (05.4.0.1)

  • Light bulbs, tubes, LEDs (05.5.2.2)

  • Delivery and installation of loose carpets and other furniture and furnishings if charged separately (07.4.9.2)

  • Light strings for Christmas tree (09.2.1.3)

  • Camping equipment (09.2.2.2)

  • Carrycots and pushchairs/strollers; wall thermometers and barometers (13.2.9.1)

  • Works of art and antique furniture acquired primarily as stores of value (capital formation)

05.1.1.1 Household Furniture (D)

Includes:

  • Sofas, couches, tables, chairs, cupboards, chests of drawers and bookshelves, hanger stands, and coat stands

  • Bunk bed, baby furniture, such as cradles, highchairs, and playpens

  • Beds, mattresses, base-mattresses (tatamis), wardrobes, and bedside tables

  • Kitchen tables and chairs, cupboards, and surfaces

  • Furniture primarily for bathroom use

Includes also:

  • Inflatable sofas, armchairs, and beds

  • Pieces of furniture specifically made for the customer

Excludes:

  • Repair and hire of household furniture (05.1.2.0)

  • Antique furniture acquired primarily as stores of value (capital formation)

05.1.1.2 Garden and Camping Furniture (D)

Includes:

  • Furniture primarily for gardens use

  • Wrought iron benches and tables, arbors

  • Small garden houses to store garden tools and machines

  • Camping furniture

Includes also:

  • Pieces of furniture specifically made for the customer

Excludes:

  • Decorative materials for gardens (05.1.1.4)

  • Repair and hire of garden and camping furniture (05.1.2.0)

  • Camping equipment (09.2.2.2)

05.1.1.3 Lighting Equipment (D)

Includes:

  • Lighting equipment, such as ceiling lights, standard lamps, globe lights and bedside lamps, light, and LED strings

Excludes:

  • Repair and hire of lighting equipment (05.1.2.0)

  • Light bulbs, tubes, LEDs (05.5.2.2)

  • Light strings for Christmas tree (09.2.1.3)

05.1.1.4 Furnishings, Loose Carpets, and Rugs (D)

Includes:

  • Rugs (loose) carpets

  • Pictures, sculptures, engravings, tapestries, and other art objects including reproductions of works of art and other ornaments

  • Statuettes and other decorative articles of porcelain and crystal glass

  • Wall clocks, alarm clocks, and travel clocks

  • Screens, folding partitions, nontextile blinds, mirrors, candleholders, and candlesticks

  • Decorative materials for gardens

  • Leather and fur for upholstery and room decorating

Excludes:

  • Fitted carpets and linoleum (04.3.1.1)

  • Repair and hire of loose carpets and other furniture and furnishings (05.1.2.0)

  • Bedding (bed linen) and sunshades (05.2.1.2, 05.2.1.9)

  • Safes (05.3.1.9)

  • Ornamental glass and ceramic articles (05.4.0.1)

  • Charges for the delivery of furniture (when charged separately) (07.4.9.2)

  • Carrycots and pushchairs/strollers; wall thermometers and barometers (13.2.9.1)

  • Works of art acquired primarily as stores of value (capital formation)

05.1.2 Repair, Installation, and Hire of Furniture; Furnishings; and Loose Carpets (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of furniture, furnishings, and loose carpets

  • Restoration of works of art, antique furniture, and antique floor coverings other than those acquired primarily as stores of value (capital formation)

  • Charges for the hire of furniture, furnishings, and loose carpets

  • Charges for the installation of furniture (when charged separately)

Excludes:

  • Laying and repair of fitted carpets, linoleum, and other such floor coverings (04.3.2.0)

  • Separate purchases of materials made by households with the intention of undertaking the repair themselves (05.1.1)

  • Dry-cleaning and shampooing of carpets (05.6.2.9)

05.1.2.0 Repair, Installation, and Hire of Furniture; Furnishings; and Loose Carpets (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of furniture, furnishings, and loose carpets

  • Restoration of works of art, antique furniture, and antique floor coverings other than those acquired primarily as stores of value (capital formation)

  • Charges for the hire of furniture, furnishings, and loose carpets

  • Charges for the installation of furniture (when charged separately)

Excludes:

  • Laying and repair of fitted carpets, linoleum, and other such floor coverings (04.3.2.0)

  • Separate purchases of materials made by households with the intention of undertaking the repair themselves (05.1.1)

  • Dry-cleaning and shampooing of carpets (05.6.2.9)

05.2 Household Textiles

05.2.1 Household Textiles (SD)

Includes:

  • Furnishing fabrics, curtain material, curtains, double curtains, awnings, door curtains, and fabric blinds

  • Bedding, such as futons, pillows, bolsters, and hammocks

  • Bed linen, such as sheets, pillowcases, blankets, traveling rugs, plaids, eiderdowns, counterpanes, and mosquito nets

  • Table linen and bathroom linen, such as tablecloths, table napkins, towels, and face cloths

  • Other household textiles, such as shopping bags, laundry bags, shoe bags, covers for clothes and furniture, fags, sunshades, and so on

  • Oilcloth; bathroom mats, rush mats, and doormats, material costs of made-to-measure household textiles

Includes also:

  • Feather and other fillers for pillows

Excludes:

  • Fabric wall coverings (04.3.1.1)

  • Floor coverings, such as loose carpets; tapestries (05.1.1.4)

  • Repair and sewing services of household textiles (05.2.2.0)

  • Electric blankets (05.3.2.9)

  • Covers for motor cars, motorcycles, and so on (07.2.1.3)

  • Air mattresses and sleeping bags (09.2.2.2)

05.2.1.1 Furnishing Fabrics and Curtains (SD)

Includes:

  • Furnishing fabrics, curtain material, curtains, double curtains, awnings, door curtains, and fabric blinds

Excludes:

  • Repair and sewing services of curtains (05.2.2.0)

05.2.1.2 Bed Linen (SD)

Includes:

  • Bed linen, such as sheets, pillowcases, blankets, traveling rugs, plaids, eiderdowns, counterpanes, and mosquito nets

Excludes:

  • Repair and sewing services of bed linen (05.2.2.0)

  • Electric blankets (05.3.2.9)

  • Air mattresses and sleeping bags (09.2.2.2)

05.2.1.3 Table Linen and Bathroom Linen (SD)

Includes:

  • Table linen and bathroom linen, such as tablecloths, table napkins, towels, and face cloths

Excludes:

  • Repair and sewing services of table linen and bathroom linen (05.2.2.0)

05.2.1.9 Other Household Textiles (SD)

Includes:

  • Other household textiles, such as shopping bags, laundry bags, shoe bags, covers for clothes and furniture, fags, sunshades, and so on

  • Bedding, such as futons, pillows, bolsters, and hammocks

  • Oilcloth

  • Bathroom mats, rush mats, and doormats

Includes also:

  • Feather and other fillers for pillows

Excludes:

  • Fabric wall coverings (04.3.1.1)

  • Floor coverings, such as loose carpets; tapestries (05.1.1.4)

  • Repair and sewing services of other household textiles (05.2.2.0)

  • Covers for motor cars, motorcycles, and so on (07.2.1.3)

05.2.2 Repair, Hire, and Sewing Services of Household Textiles (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of household textiles

  • Sewing services of household textiles

  • Charges for the hire of household textiles

05.2.2.0 Repair, Hire, and Sewing Services of Household Textiles (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of household textiles

  • Sewing services of household textiles

  • Charges for the hire of household textiles

05.3 Household Appliances

05.3.1 Major Household Appliances, Whether Electric or Not (D)

Includes:

  • Refrigerators and dual temperature refrigerators

  • Dishwashers

  • Electric/gas/oil/ceramic/induction panels, hobs, spit roasters, electric/gas/convection ovens, combined cookers, and microwave ovens

  • Extractor hoods

Includes also:

  • Delivery and installation of the appliances when applicable and when not charged separately

  • Separate purchases of parts/materials made by households with the intention of undertaking the repair themselves

  • Washing machines, dryers, drum dryers, drying cabinets, drying radiators

  • Ironing machines and electric mangles

  • Air-conditioners, humidifiers, space heaters, water heaters, and ventilators

  • Vacuum cleaners, steam-cleaning machines, carpet shampooing machines, and machines for scrubbing, waxing, and polishing floors

  • Other major household appliances, such as safes, sewing machines, knitting machines, water softeners, and so on

Excludes:

  • Repair or hire of major household appliances (05.3.3.0)

  • Such appliances that are built into the structure of the building (capital formation)

05.3.1.1 Major Kitchen Appliances (D)

Includes:

  • Refrigerators and dual temperature refrigerators

  • Dishwashers

  • Electric/gas/oil/ceramic/induction panels, hobs, spit roasters, electric/gas/convection ovens, combined cookers, and microwave ovens

  • Extractor hoods

Excludes:

  • Repair or hire of major kitchen appliances (05.3.3.0)

05.3.1.2 Major Laundry Appliances (D)

Includes:

  • Washing machines, dryers, drum dryers, drying cabinets, and drying radiators

  • Ironing machines and electric mangles

Excludes:

  • Repair or hire of laundry appliances (05.3.3.0)

05.3.1.3 Heaters, Air-Conditioners (D)

Includes:

  • Air-conditioners, humidifiers, space heaters, water heaters, and ventilators

Excludes:

  • Repair or hire of these appliances (05.3.3.0)

05.3.1.4 Cleaning Equipment (D)

Includes:

  • Vacuum cleaners, steam-cleaning machines, carpet shampooing machines, and machines for scrubbing, waxing, and polishing floors

Excludes:

  • Repair or hire of cleaning equipment (05.3.3.0)

05.3.1.9 Other Major Household Appliances (D)

Includes:

  • Other major household appliances, such as safes, sewing machines, knitting machines, water softeners, and so on

Excludes:

  • Repair or hire of major household appliances (05.3.3.0)

05.3.2 Small Electric Household Appliances (SD)

Includes:

  • Multifunction machine, food mixers, blenders, and blenders with heating elements

  • Slicing machines

  • Rice cookers, slow cookers

  • Toasters

  • Sandwich grills

  • Meat and fish grills

  • Deep fryers

  • Ice cream makers

  • Sorbet makers

  • Yogurt makers

  • Hotplates

  • Can openers

  • Electric knives

  • Coffee machines

  • Tea makers

  • Water boilers

  • Kettles

  • Coffee mills

  • Juice extractors

  • Electric irons

  • Fans

  • Electric blankets

Excludes:

  • Ironing machines (05.3.1.2)

  • Repair or hire of small electric household appliances (05.3.3.0)

  • Small nonelectric household articles and kitchen utensils; household scales (05.4.0.3)

  • Baby scales (06.1.2.1)

  • Personal weighing machines (13.1.2.0)

05.3.2.1 Small Electric Appliances for Cooking and Processing of Food (SD)

Includes:

  • Multifunction machine, food mixers, blenders, and blenders with heating elements

  • Slicing machines

  • Rice cookers, slow cookers

  • Toasters

  • Sandwich grills

  • Meat and fish grills

  • Deep fryers

  • Ice cream makers

  • Sorbet makers

  • Yogurt makers

  • Hotplates

  • Can openers

  • Electric knives

Excludes:

  • Repair or hire of food processing appliances (05.3.3.0)

05.3.2.2 Small Electric Appliances for Preparing Beverages (SD)

Includes:

  • Coffee machines

  • Tea makers

  • Water boilers

  • Kettles

  • Coffee mills

  • Sparkling water makers

  • Juice extractors

Excludes:

  • Repair or hire of coffee machines, tea makers, and similar appliances (05.3.3.0)

05.3.2.9 Other Small Electric Household Appliances (SD)

Includes:

  • Electric irons

  • Fans

  • Electric blankets

Excludes:

  • Ironing machines (05.3.1.2)

  • Repair or hire of irons (05.3.3.0)

  • Small nonelectric household articles and kitchen utensils (05.4.0.3)

  • Household scales (05.4.0.3)

  • Personal weighing machines (13.1.2.0)

  • Baby scales (06.1.2.1)

05.3.3 Repair, Installation, and Hire of Household Appliances (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of household appliances

  • Charges for the hire of major household appliance

  • Charges for the installation of household appliances (if charged separately)

Excludes:

  • Separate purchases of materials made by households with the intention of undertaking the repair themselves (05.3.1)

05.3.3.0 Repair, Installation, and Hire of Household Appliances (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of household appliances

  • Charges for the hire of major household appliance

  • Charges for the installation of household appliances (if charged separately)

Excludes:

  • Separate purchases of materials made by households with the intention of undertaking the repair themselves (05.3.1)

05.4 Glassware, Tableware, and Household Utensils

05.4.0 Glassware, Tableware, and Household Utensils (SD)

Includes:

  • Glassware, crystal ware, ceramic ware, and chinaware of the kind used for table, kitchen, bathroom, toilet, office, and indoor decoration

  • Cutlery, flatware, and silverware

  • Nonelectric kitchen utensils of all materials, such as saucepans, stew pots, pressure cookers, frying pans, coffee mills, sparkling water makers, purée makers, mincers, hotplates, household scales, and other such mechanical devices

  • Nonelectric household articles of all materials, such as containers for bread, coffee, spices, and so on, waste bins, waste-paper baskets, laundry baskets, portable money boxes and strongboxes, towel rails, bottle racks, irons and ironing boards, letter boxes, feeding bottles, thermos flasks, and iceboxes

  • Repair and hire of glassware, tableware, and household utensils

Excludes:

  • Lighting equipment (05.1.1.3)

  • Cardboard tableware (05.6.1.9)

  • Personal weighing machines (13.1.2.0)

  • Baby scales (06.1.2.1)

  • Ashtrays (13.2.9.1)

05.4.0.1 Glassware, Crystal Ware, Ceramic Ware, and Chinaware (SD)

Includes:

  • Glassware, crystal ware, ceramic ware, and chinaware of the kind used for table, kitchen, bathroom, toilet, office, and indoor decoration

Excludes:

  • Repair or hire of glassware, crystal ware, ceramic ware, and chinaware (05.4.0.4)

05.4.0.2 Cutlery, Flatware, and Silverware (SD)

Includes:

  • Cutlery, flatware, and silverware

Excludes:

  • Repair or hire of such cutlery, flatware, and silverware (05.4.0.4)

05.4.0.3 Nonelectric Kitchen Utensils and Articles (SD)

Includes:

  • Nonelectric kitchen utensils of all materials, such as saucepans, stew pots, pressure cookers, frying pans, coffee mills, sparkling water makers, purée makers, mincers, hotplates, household scales, and other such mechanical devices

  • Nonelectric household articles of all materials, such as containers for bread, coffee, spices, and so on, waste bins, waste-paper baskets, laundry baskets, portable money boxes and strongboxes, towel rails, bottle racks, irons and ironing boards, letter boxes, feeding bottles, thermos flasks, and iceboxes

Excludes:

  • Lighting equipment (05.1.1.3)

  • Repair or hire of nonelectric kitchen utensils and articles (05.4.0.4)

  • Cardboard tableware (05.6.1.9)

  • Baby scales (06.1.2.1)

  • Personal weighing machines (13.1.2.0)

  • Ashtrays (13.2.9.1)

05.4.0.4 Repair and Hire of Glassware, Tableware, and Household Utensils (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair and hire of glassware, crystal ware, ceramic ware and chinaware, cutlery, flatware and silverware, and nonelectric kitchen utensils and articles

05.5 Tools and Equipment for House and Garden

05.5.1 Motorized Tools and Equipment (D)

Includes:

  • Electric drills, percussion drill, electric saws, electric sanders

  • Garden tractors, chain saws, lawn mowers, clipper for lawn, hedge cutters, and cultivators

  • Water pumps

  • Electric screwdrivers

Excludes:

  • Repair or hire of motorized major tools and equipment (05.5.3.0)

05.5.1.0 Motorized Tools and Equipment (D)

Includes:

  • Electric drills, percussion drill, electric saws, electric sanders

  • Garden tractors, chain saws, lawn mowers, clipper for lawn, hedge cutters, and cultivators

  • Water pumps

  • Electric screwdrivers

Excludes:

  • Repair or hire of motorized major tools and equipment (05.5.3.0)

05.5.2 Nonmotorized Tools and Miscellaneous Accessories (SD)

Includes:

  • Hand tools, such as saws, hammers, screwdrivers, wrenches, spanners, pliers, trimming knives, rasps, and files

  • Garden tools, such as wheelbarrows, watering cans, hoses, spades, shovels, rakes, forks, scythes, sickles, and secateurs

  • Ladders and steps

  • Fittings for radiators and fireplaces, other metal articles for the house (curtain rails, curtain rods of wood or plastics, string curtain rods, carpet rods, hooks, and so on) or for the garden (chains, grids, stakes, and hoop segments for fencing and bordering)

  • Small electric accessories, such as switches, electric bulbs, fluorescent lighting tubes, torches, flashlights, hand lamps, and electric batteries for general use

Excludes:

  • Door fittings, power sockets, switches, and wiring flex (04.3.1.1)

  • Repair or hire of miscellaneous small tool accessories (05.5.3.0)

  • Batteries for information and communication appliances (08.1.9.2)

  • Batteries for photographic and cinematographic equipment (09.1.1.2)

05.5.2.1 Nonmotorized Tools (SD)

Includes:

  • Saws, hammers, screwdriver, wrenches, spanners, pliers, trimming knives, rasps, and files

  • Power shears, wheelbarrows, watering cans, hoses, spades, shovels, rakes, forks, scythes, sickles, and secateurs

  • Ladders and steps

Excludes:

  • Repair or hire of nonmotorized small tools (05.5.3.0)

05.5.2.2 Miscellaneous Accessories (SD)

Includes:

  • Fittings for radiators and fireplaces, other metal articles for the house (curtain rails, curtain rods of wood or plastics, string curtain rods, carpet rods, hooks, and so on) or for the garden (chains, grids, stakes, and hoop segments for fencing and bordering)

  • Small electric accessories, such as electric bulbs, fluorescent lighting tubes, torches, flashlights, hand lamps, and electric batteries for general use

Excludes:

  • Door fittings, power sockets, switches, and wiring flex (04.3.1.1)

  • Repair or hire of miscellaneous small tool accessories (05.5.3.0)

  • Batteries for information and communication appliances (08.1.9.2)

  • Batteries for photographic and cinematographic equipment (09.1.1.2)

05.5.3 Repair and Hire of Motorized and Nonmotorized Tools and Equipment (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair and hire of motorized tools and equipment

  • Repair and hire of nonmotorized tools and miscellaneous accessories

05.5.3.0 Repair and Hire of Motorized and Nonmotorized Tools and Equipment (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair and hire of motorized tools and equipment

  • Repair and hire of nonmotorized small tools and miscellaneous accessories

05.6 Goods and Services for Routine Household Maintenance

05.6.1 Nondurable Household Goods (ND)

Includes:

  • Detergents, hand and machine dishwashing detergent, scouring powders, disinfectant bleaches, softeners, conditioners, and stain remover

  • General-purpose cleanser, window-cleaning products, unblocking agents, and disinfectants

  • Floor wax, polishes

  • Polishes, creams, and other shoe-cleaning articles (shoe brush)

  • Insecticides, fungicides, and distilled water

  • Dustpans and dust brushes, dusters

  • Cloths, floor cloths, and chamois leathers

  • Dish brush, household sponges, scourers, and steel wool

  • Filters, tablecloths and table napkins, kitchen paper, baking parchment roll, kitchen film, aluminum foil, and doily

  • Disposable plates, cups, and cutlery

  • Vacuum cleaner bags

  • Candles, lamp wicks, methylated spirits, plastic bag, and garbage bag

  • Matches, clothes-pegs, clothes hangers, pins, safety pins, sewing needles, knitting needles, thimbles, nails, screws, nuts and bolts, tacks, washers, glues and adhesive tapes for household use, string, twine, and rubber gloves

  • Pool cleaning chemicals and water treatment chemicals

Excludes:

  • Brushes and scrapers for paint, varnish, and wallpaper (04.3.1.1)

  • Products specifically for the cleaning and maintenance of transport equipment, such as paints, chrome cleaners, sealing compounds, and bodywork polishes (07.2.1.3)

  • Horticultural products for the upkeep of ornamental gardens (09.3.1.1)

  • Paper handkerchiefs, toilet paper, toilet soaps, toilet sponges, and other products for personal hygiene (13.1.2.0)

  • Cigarette, cigar, and pipe lighters and lighter fuel (13.2.9.1)

05.6.1.1 Cleaning and Maintenance Products (ND)

Includes:

  • Detergents, hand and machine dishwashing detergent, scouring powders, disinfectant bleaches, softeners, conditioners, and stain remover

  • General-purpose cleanser, window-cleaning products, unblocking agents, and disinfectants

  • Floor wax, polishes

  • Polishes, creams, and other shoe-cleaning articles (shoe brush)

  • Dustpans and dust brushes, dusters

  • Cloths, floor cloths, and chamois leathers

  • Dish brush, household sponges, scourers, and steel wool

  • Vacuum cleaner bags

  • Pool cleaning chemicals and water treatment chemicals

Excludes:

  • Brushes and scrapers for paint, varnish, and wallpaper (04.3.1.1)

  • Products specifically for the cleaning and maintenance of transport equipment, such as paints, chrome cleaners, sealing compounds, and bodywork polishes (07.2.1.3)

  • Horticultural products for the upkeep of ornamental gardens (09.3.1.1)

05.6.1.9 Other Nondurable Household Goods (ND)

Includes:

  • Insecticides, fungicides, and distilled water

  • Filters, tablecloths and table napkins, kitchen paper, baking parchment roll, kitchen film, aluminum foil, and doily

  • Disposable plates, cups, and cutlery

  • Candles, lamp wicks, methylated spirits, plastic bags, and garbage bags

  • Matches, clothes-pegs, clothes hangers, pins, safety pins, sewing needles, knitting needles, thimbles, nails, screws, nuts and bolts, tacks, washers, glues and adhesive tapes for household use, string, twine and rubber gloves, and gardening gloves

Excludes:

  • Paper handkerchiefs, toilet paper, toilet soaps, toilet sponges, and other products for personal hygiene (13.1.2.0)

  • Cigarette, cigar, and pipe lighters and lighter fuel (13.2.9.1)

05.6.2 Domestic Services and Household Services (S)

Domestic services (05.6.2.1) are services provided by personnel employed by households (such as butlers, maids, cooks, nannies, governesses, cleaners, au pairs, and gardeners) who receive a compensation or wage for their services. Domestic services also include services such as babysitting, gardening, and cleaning supplied by enterprises and self-employed persons. Other household services (05.6.2.9) are services provided by enterprises and self-employed persons that are not routinely provided by staff employed by households, such as carpet cleaning, pest extermination, and disinfection.

Includes:

  • Domestic services supplied by paid staff employed in private services, such as butlers, cooks, maids, drivers, gardeners, governesses, and au pairs or nannies

  • Similar services, including babysitting and housework, supplied by enterprises or self-employed persons

  • Household services, such as window cleaning, disinfecting, fumigation, and pest extermination

  • Dry-cleaning, laundering, and dyeing of household linen, household textiles, and carpets

  • Shampooing of carpets

  • Pest extermination, disinfection

  • Maintaining fat in the absence of owner

Includes also:

  • Housemaids that iron household linen and clothes in the family residence

Excludes:

  • Dry-cleaning, laundering, and dyeing of garments (03.1.4.1)

  • Refuse collection (04.4.2.0)

  • Security services (04.3.2.0)

  • Sewerage collection (04.4.3.0)

  • Coproprietor charges for caretaking, gardening, stairwell cleaning, heating and lighting, maintenance of lifts and refuse disposal chutes, and so on in multi-occupied buildings (04.4.4.1)

  • Snow removal and chimney sweeping (04.4.4.9)

  • Removal and storage services (07.4.9.1)

  • Child-minding with an educational component (10.1.0.1)

  • Child-minding outside home (13.3.0.1)

  • Bodyguards (13.9.0.9)

05.6.2.1 Domestic Services by Paid Staff (S)

Includes:

  • Domestic services supplied by paid staff employed in private services, such as butlers, cooks, maids, drivers, gardeners, governesses, and au pairs or nannies

Includes also:

  • Housemaids that iron household linen and clothes in the family residence

Excludes:

  • Child-minding with an educational component (10.1.0.1)

  • Child-minding outside home (13.3.0.1)

05.6.2.9 Other Household Services (S)

Includes:

  • Dry-cleaning of household linen and textiles

  • Carpet cleaning

  • Laundering and dyeing of household textiles

  • Other services supplied by enterprises or self-employed persons

  • Pest extermination, disinfection

  • Maintaining fat in the absence of owner

Excludes:

  • Dry-cleaning, laundering, and dyeing of garments (03.1.4.1)

  • Refuse collection (04.4.2.0)

  • Security services (04.3.2.0)

  • Sewerage collection (04.4.3.0)

  • Coproprietor charges for caretaking, gardening, stairwell cleaning, heating and lighting, maintenance of lifts and refuse disposal chutes, and so on in multi-occupied buildings (04.4.4.1)

  • Snow removal and chimney sweeping (04.4.4.9)

  • Removal and storage services (07.4.9.1)

  • Bodyguards (13.9.0.9)

06 Health

Division 06 comprises four main categories, one of which concerns health products, while the three other concern health services. Specifically, health services provided during an overnight stay (06.3); services that do not require an overnight stay (06.2); and diagnostic imaging services, medical laboratory services, patient emergency transportation and emergency rescue services (06.4). Medicines and health products (06.1) cover all products that are separately invoiced from health services except when administered under the direct supervision of a health care professional during an overnight stay (06.3).

Services and products included in Division 06 are those that can only be used in response to a health need. These services and products aim at preventing the occurrence of illnesses and diseases (for example, through vaccination); cure from illnesses, diseases, and injuries; relieving symptoms of illnesses, diseases, and injuries; reduce the severity of illnesses, diseases, and injuries; protect against exacerbation and complication of illnesses, diseases, and injuries; and restoring the health status or maintaining/preventing the deterioration of a health condition.

It also includes services provided by health care professional purely for aesthetic beautification purposes (for example, cosmetic surgery; dental work to whiten teeth).

Division 06 excludes food believed to be highly beneficial to health, especially food grown organically as well as foods or food ingredients that have been shown to affect specific functions or system of the body (Division 01).

06.1 Medicines and Health Products

Includes:

  • Medicines, vaccines, pharmaceutical preparations, medical devices, assistive products, and other health-related products used for the prevention, diagnosis, and treatment of illnesses, diseases, and injuries, and purchased by individuals or households, either with or without a prescription, usually from pharmacies, health facilities, or medical/assistive equipment suppliers and from reliable internet sources. They are intended for consumption or use outside a health facility or institution.

Excludes:

  • Nutritional supplements and fortifed food products (01.1.9.9)

  • Medicines and health products supplied directly by a health care provider to outpatients (no overnight stay) or inpatients (overnight stay) for consumption outside a health facility or institution are to be classified as outpatient services (06.2) or inpatient services (06.3) if not separately identifiable from the service

  • Services fees to dispense medicines charged by a health practitioner during an outpatient service (06.2) or an inpatient service (06.3) if not separately identifiable from the service

  • Veterinary products (09.4.5.0)

  • Products for personal hygiene or personal care including beauty products and creams (13.1) (for example, aromatherapy products and slimming and beauty enhancing creams)

06.1.1 Medicines (ND)

Includes:

  • Medicines, vaccines, and other pharmaceutical preparations (all medicines, including branded and generic products, and pharmaceutical preparations used to treat diseases; vaccines, hormones, oral contraceptives, and other pharmaceutical products used to prevent, to diagnose or to treat the diseases; vitamins and minerals; fluids required for dialysis, as well as gases used in health care, such as oxygen, when the patient purchases them directly)

  • Herbal medicines and homeopathic products

Includes also:

  • Service fees to dispense medicines charged by the pharmacists

Excludes:

  • Nutritional supplements and fortified food products (01.1.9.9)

  • Medicines and health products supplied directly by a health care provider to outpatients (no overnight stay) or inpatients (overnight stay) for consumption outside a health facility or institution are to be classified as outpatient services (06.2) or inpatient services (06.3) if not separately identifiable from the service

  • Service fees to dispense medicines charged by a health practitioner during an outpatient service (06.2) or an inpatient service (06.3) if not separately identifiable from the service

  • Veterinary products (09.4.5.0)

  • Products for personal hygiene or personal care including beauty products and creams (13.1) (for example, aromatherapy products and slimming and beauty enhancing creams)

06.1.1.1 Medicines, Vaccines, and Other Pharmaceutical Preparations (ND)

Includes:

  • All medicines, including branded and generic products to treat illnesses, diseases, and injuries

  • Pharmaceutical preparations used to treat illnesses, diseases, and injuries (for example, extemporaneous ointments, syrups, capsules, or other galenical substances prepared on prescription)

  • Vaccines, hormones, oral contraceptives, and other pharmaceutical products used to prevent, diagnose, or treat illnesses and diseases

  • Vitamins and minerals

  • Fluids required for dialysis, as well as gases used in health care, such as oxygen, when the patient purchases them directly

Includes also:

  • Service fees to dispense medicines charged by the pharmacists

Excludes:

  • Nutritional supplements and fortified food products (01.1.9.9)

  • Medicines and health products supplied directly by a health care provider to outpatients (no overnight stay) or inpatients (overnight stay) for consumption outside a health facility or institution are to be classified as outpatient services (06.2) or inpatient services (06.3) if not separately identifiable from the service

  • Service fees to dispense medicines charged by a health practitioner during an outpatient service (06.2) or an inpatient service (06.3) if not separately identifiable from the service

  • Veterinary products (09.4.5.0)

  • Products for personal hygiene or personal care including beauty products and creams (13.1) (for example, aromatherapy products and slimming and beauty enhancing creams)

06.1.1.2 Herbal Medicines and Homeopathic Products (ND)

Includes:

  • Herbal medicines include herbs, herbal materials, herbal preparations, and finished herbal products, which contain as active ingredients parts of plants, or other plant materials, or combinations generally used in traditional medicine or complementary medicine

  • Homeopathic products include any medicine prepared in accordance with a homeopathic manufacturing procedure described by a pharmacopeia in official use or other officially recognized documents (a homeopathic medicine may contain a number of homeopathic preparations)

Excludes:

  • Herbal medicines and homeopathic products supplied directly by a health care provider to outpatients (no overnight stay) or inpatients (overnight stay) for consumption or use outside a health facility are to be classified with outpatient services (06.2) or inpatient services (06.3) if not separately identifiable from the service.

06.1.2 Medical Products (ND)

Includes:

  • Diagnostic equipment for self-test or over-the-counter sale for personal use outside a health facility or institution

  • Pregnancy tests; thermometers, glucose meters, blood pressure meters, and other point of care tests, baby scales, and so on

  • Condoms and other mechanical contraceptive devices (does not include oral contraceptives), masks, medicinal stockpiles (for example, compression stockpiles), medicinal gloves, insecticide-treated mosquito nets, and so on

  • Inhalers, syringes, humidifiers, nebulizers, hot bags, ice packs, first aid kits, bandages, and so on

Includes also:

  • All internet purchases of medical products for personal use

Excludes:

  • Diagnostic products for use inside a health facility or institution (06.3)

  • Scales (13.1.2.0)

06.1.2.1 Medical Diagnostic Products (ND)

Includes:

  • Diagnostic equipment for self-test or over-the-counter sale for personal use outside a health facility or institution

  • Pregnancy tests; thermometers, glucose meters, blood pressure meters, and other point of care tests, baby scales, and so on

Includes also:

  • All internet purchases of medical products for personal use

Excludes:

  • Diagnostic products for use inside a health facility or institution (06.3)

  • Scales (13.1.2.0)

06.1.2.2 Prevention and Protective Devices (ND)

Includes:

  • Condoms and other mechanical contraceptive devices (does not include oral contraceptives), masks, medicinal stockpiles (for example, compression stockpiles), medicinal gloves, insecticide-treated mosquito nets, and so on

06.1.2.3 Treatment Devices for Personal Use (ND)

Includes:

  • Inhalers, syringes, humidifiers, nebulizers, hot bags, ice packs, first aid kits, bandages, and so on

06.1.3 Assistive Products (D)

Includes:

  • Assistive products for vision, hearing, and communication; mobility and daily living, such as spectacles (corrective eyeglasses and contact lenses), wheelchairs, hearing aids, walking frames, and artificial legs

Excludes:

  • Sunglasses; earplugs (13.2.9.1)

  • Glasses for the protection against potential eye damage due to the practice of a sport (09.2.2.1)

06.1.3.1 Assistive Products for Vision (D)

This comprises all external products whose primary purpose is to maintain or improve an individual’s vision, to compensate for an impairment/a loss of intrinsic visual, and to reduce the consequences of gradual functional visual decline.

Includes:

  • Corrective eyeglasses (spectacles for low vision, short distance, long distance)

  • White canes

  • Ocular prosthesis (for example, glass eyes) or contact lenses

Excludes:

  • Dental implants and dentures are to be included in 06.3.1.0 when an overnight stay is required and in 06.2.2. when not

  • Walking sticks and canes for recreational purposes (hiking/tracking); glasses for the protection against potential eye damage due to the practice of a sport (09.2.2.1)

  • Sunglasses (13.2.9.1)

06.1.3.2 Assistive Products for Hearing and Communication (D)

This comprises all external products whose primary purpose is to maintain or improve an individual’s hearing and communication, to compensate for an impairment/a loss of intrinsic hearing and communication capacity, and to reduce the consequences of gradual functional hearing/communication decline.

Includes:

  • Digital hearing aids

Includes also:

  • Cleaning, adjustment, and batteries if not separately identifiable from the product

06.1.3.3 Assistive Products for Mobility and Daily Living (D)

This comprises all assistive products to maintain or improve an individual’s mobility and daily living; to compensate for an impairment/a loss of intrinsic mobility or the inability to perform daily activities; and to reduce the consequences of gradual functional mobility and decline in the ability to perform daily activities.

Includes:

  • Therapeutic footwear (diabetic/neuropathic/orthopedic); trusses and supports

  • Orthoses (brace, splint, or other artificial external device serving to support the leg, spine, neck, hand)

  • Prostheses (leg/hand including implants); spinal belts/ braces including neck braces or cervical collars

  • Crutches

  • Rollators/walking/standing frames

  • Wheelchairs with or without cushions (powered/manual)

  • Walkers; walking sticks and canes for mobility

  • Chairs for shower/bath/toilet; handrails/grab bars

  • Incontinence products, absorbent including diapers for the aging population

  • Pressure relief mattresses and special beds

  • Portable ramps

Excludes:

  • Dental implants and dentures are to be included in 06.3.1.0 when an overnight stay is required and in 06.2.2. when not

  • Walking sticks and canes for recreational purposes (hiking/tracking) (09.2.2.1)

06.1.4 Repair, Rental, and Maintenance of Medical and Assistive Products (S)

Includes:

  • Cleaning repair, rental, and maintenance of medical diagnostic products for personal use and assistive products for vision, hearing, mobility, and daily living (for example, rental of medical alarms for in-home use)

06.1.4.0 Repair, Rental, and Maintenance of Medical and Assistive Products (S)

Includes:

  • Cleaning repair, rental, and maintenance of medical diagnostic products for personal use and assistive products for vision, hearing, mobility, and daily living (for example, rental of medical alarms for in-home use)

06.2 Outpatient Care Services

This group covers all preventive, dental, curative, rehabilitative, and long-term care services not provided during an overnight stay. The admission criteria are irrelevant as well as the setting where the outpatient care occurs or the type of provider. As such, outpatient services may be delivered in a hospital setting or outside a hospital setting including at home or even on the street by any type of health care provider. Outpatient services include all medicines and health products supplied directly by a health care provider for consumption or use outside a health facility/institution if not separately identifiable from the service.

It also includes respite care as well as services to maintain people in their private homes that are integrated into a package of medical outpatient care services.

Excludes:

  • The vaccine itself when separately invoiced from the preventive service (06.1.1.1)

  • Dental, curative, rehabilitative, and long-term care services provided overnight (06.3)

  • Control and follow-up services after symptoms appeared with overnight care are to be included in 06.3

  • Laboratory and imaging services separately identifiable from the preventive service (06.4)

  • Nonmedical services to maintain people in their private homes that are not integrated into a package of medical care (13.3.0.2)

06.2.1 Preventive Care Services (S)

Preventive services aim at avoiding illnesses and diseases, and detecting diseases (for example, via screening). The main distinction between preventive services and other outpatient services is the criterion “before symptoms appear.”

Includes:

  • Immunization/vaccination services

  • Family planning and counseling

  • Healthy condition monitoring services (prenatal care and postnatal care services)

  • General and routine check-ups other than dental

  • Child growth and development check-ups

  • Early disease detection services, before symptoms appear (including screening, diagnostic tests, and medical examinations directed to detect communicable and noncommunicable diseases before symptoms appear)

Includes also:

  • Laboratory and imaging services needed to provide preventive services when jointly invoiced with the time and skills of the personnel

Excludes:

  • The vaccine itself when separately invoiced from the preventive service (06.1.1.1)

  • Dental, curative, rehabilitative, and long-term care services provided overnight (06.3)

  • Control and follow-up services after symptoms appeared with overnight care are to be included in 06.3

  • Laboratory and imaging services separately identifiable from the preventive service (06.4)

  • Nonmedical services to maintain people in their private homes that are not integrated into a package of medical care (13.3.0.2)

06.2.1.1 Immunization Services (S)

The expenditure involved in the consultation, for both the time and skills of the personnel and the purchase of the vaccine itself when jointly invoiced with the service should be accounted for.

Illustrative examples are immunization for:

  • Polio, rabies, rubella, tetanus, varicella (chicken pox), and yellow fever

  • Influenza

  • Measles

  • Meningococcal infections, mumps, pertussis (whooping cough), and pneumococcal infections

  • Diphtheria, hepatitis, herpes zoster, and HPV

Includes:

  • Immunization/vaccination services for maternal and childcare

  • Travel and tourism vaccination as well as any other compulsory or voluntary immunization/vaccination service

Excludes:

  • The vaccine itself when separately invoiced from the service (06.1.1.1)

06.2.1.9 Other Preventive Services (S)

Includes:

  • Family planning and counseling (including genetic counseling)

  • Prenatal and postnatal care services

  • General routine check-up services including child growth and development

  • Identification of genetic abnormalities

  • Screening, diagnostic tests, and medical examinations directed to detect communicable and noncommunicable diseases (for example, malaria, tuberculosis, breast cancer, prostate cancer, cervical cancer, colorectal cancer, diabetes, HIV/AIDS, and any other communicable or noncommunicable disease) before symptoms appear

  • Any other medical service provided before symptoms appear

Includes also:

  • Laboratory and imaging services needed to provide preventive services jointly invoiced with the time and skills of the personnel (for example, mammogram)

Excludes:

  • Control and follow-up services after symptoms appeared without overnight care (06.2.2 or 06.2.3)

  • Dental routine preventive check-up (06.2.2.1)

  • Control and follow-up services after symptoms appeared with overnight care (06.3)

  • Laboratory and imaging services separately identifiable from the preventive service (06.4)

06.2.2 Outpatient Dental Services (S)

Includes:

  • Services of dentists, dental practitioners, endodontist, dental surgeons; oral and maxillofacial surgeons; oral pathologists; orthodontists; pedodontists; periodontists; prosthodontists; oral hygienists and other dental auxiliaries that do not require an overnight stay

Includes also:

  • Services of dentists for aesthetic reasons

Excludes:

  • All health products (pharmaceutical, medical, assistive, therapeutic) needed to deliver outpatient dental services separately invoiced from the provider’s service fee (06.1)

  • Services of medical analysis laboratories and imaging centers separately identifiable from the dental services received (06.4.1.0)

06.2.2.1 Dental Preventive Services (S)

Includes:

  • Routine preventive dental check-ups

06.2.2.9 Other Outpatient Dental Services (S)

Includes:

  • All other dental services that do not require an overnight stay (excluding preventive dental services)

  • All cost concerning dentures (including the fitting costs)

Includes also:

  • Services of dentists for aesthetic reasons

Excludes:

  • All health products (pharmaceutical, medical, assistive, therapeutic) needed to deliver outpatient dental services separately invoiced from the provider’s service fee (06.1)

  • Services of medical analysis laboratories and imaging centers separately identifiable from the dental services received (06.4.1.0)

06.2.3 Other Outpatient Care Services (Excluding Preventive and Dental) (S)

Include all medical services other than preventive and dental that do not require an overnight stay aimed at relieving symptoms of illnesses, diseases, and injuries (06.2.3.1); reduce the severity of illnesses, diseases, and injuries (06.2.3.1); protect against exacerbation and complication of illnesses, diseases, and injuries (06.2.3.1); restoring health status (06.2.3.1); and maintaining the level of health available or preventing the deterioration of a health condition (06.2.3.2).

The admission criteria, the type of provider, as well as the setting where these curative, rehabilitative, long-term care outpatient care services occur are irrelevant as long as no overnight care is involved.

Includes:

  • Services at hospitals or in a hospital setting without an overnight stay (excluding preventive 06.2.1 and dental 06.2.2)

  • Medical day care services, that is, services delivered in a hospital setting (sometimes in medical day care centers) to a patient who is formally admitted as long as it does not involve an overnight stay

  • Home-based hospital treatment (for example, dialysis 06.2.3.2); medical services delivered at home (for example, palliative care 06.2.3.2); medical and nursing services to maintain people in their private home (including the elderly and people with disabilities 06.2.3.2); and nursing care delivered at home including care aimed at retarding or reducing deterioration or maintaining functionality (for example, nasogastric feeding) or for the management of chronic diseases (06.2.3.2)

  • Services delivered in individual (for example, private office) or group consulting facilities (excluding preventive services 06.2.1 and dental 06.2.2) by any type of provider (doctors, specialists, nurses, and other health care practitioners)

  • Medical services delivered on the street (for example, injections) as well as any other outpatient service delivered outside a hospital setting

Includes also:

  • All health products (pharmaceutical, medical, assistive, and therapeutic), diagnostic imaging services, and medical laboratory services needed to deliver outpatient services not separately identifiable from the provider’s service fee (doctor/specialist/nurse/other health care practitioner)

Excludes:

  • Medicines and health products (medical, assistive, therapeutic) separately invoiced from the provider’s service fee (doctor/specialist/nurse and other health care practitioner) (06.1)

  • Preventive services (06.2.1)

  • Outpatient dental services (06.2.2)

  • Diagnostic imaging services and medical laboratory services separately identifiable from the provider’s service fee (doctor/specialist/nurse and other health care practitioner) (06.4.1.0)

  • Patient emergency transportation services and emergency rescue (06.4.2.0)

06.2.3.1 Outpatient Curative and Rehabilitative Services (Excluding Dental Services) (S)

Comprises curative and rehabilitative services that do not require an overnight stay.

Curative care comprises health care contacts during which the principal intent is to relieve symptoms of illness or injury, to reduce the severity of an illness or injury, or to protect against exacerbation and complication of an illness and injury that could threaten the life or normal function. Curative services aim at bringing the person back to their original status before the cure was needed.

Rehabilitation aims to achieve and maintain optimal functioning. In some cases, after rehabilitation, a patient can be better than before or only avoid deterioration.

Includes:

  • All components of the curative care of illness or the treatment of injury; the surgery performed; diagnostic and therapeutic procedures; and obstetric services as long as it does not involve an overnight stay.

  • Curative and rehabilitative care regardless of the type of provider: (specialized) physician and other health professionals (for example, nurses and midwives).

  • Curative and rehabilitative services provided in any setting: in hospitals without an overnight stay; in individual (for example, private office) or group consulting facilities; at home or any other setting outside the hospital including on the street.

  • Physical, psychological, and speech therapy. As such, it includes services of chiropractors; physiotherapists and physical therapists; speech therapists; audiologists; inhalation or respiratory therapists, and so on. All health products (pharmaceutical, medical, assistive, therapeutic) needed to deliver curative outpatient services not separately invoiced from the provider’s service fee.

  • All health products (pharmaceutical, medical, assistive, therapeutic) needed to deliver curative/rehabilitative outpatient services invoiced from the provider’s service fee (doctor/specialist/nurse/other health care practitioner).

Excludes:

  • Medicines and health products (medical, assistive, therapeutic) separately invoiced from the provider’s service fee (doctor/specialist/nurse and other health care practitioner) (06.1)

  • Preventive services (06.2.1)

  • Outpatient dental services (06.2.2)

  • Diagnostic imaging services and medical laboratory services separately identifiable from the provider’s service fee (doctor/specialist/nurse and other health care practitioner) (06.4.1.0)

  • Patient emergency transportation services and emergency rescue (06.4.2.0)

06.2.3.2 Outpatient Long-Term Care Services (S)

Outpatient long-term care services do not aim at curing an illness or rehabilitating an individual, but to prevent deterioration of a health condition and remain at the level of health available. Some medical activities and nursing are inherent parts of this status quo. Individuals getting such type of outpatient long-term care might include, for example, the elderly with limited capacity to perform daily activities, physically disabled members of the households, and those with chronic conditions.

In some cases, outpatient long-term care services are part of a package of services including social assistance and social transfer. Where possible only the medical component should go into Division 06 (the social protection part should go to Division 13). If it is not possible to distinguish both the choice of the division should be based upon the extent to which the package of services predominantly includes a social protection component (Division 13) or medical component (Division 06).

Includes:

  • Services of medical day care centers; medical day care services for the elderly and people with disabilities

  • Home-based long-term care hospital treatment without an overnight stay (for example, dialysis)

  • Medical and nursing services to maintain people in their private home (including the elderly and people with disabilities)

  • Nursing care delivered at home including care aimed at retarding or reducing deterioration or maintaining functionality (for example, nasogastric feeding) or for the management of chronic diseases (for example, provision of the prescribed psychiatric medication)

  • Nonmedical services to maintain people in their private homes that are integrated into a package of care and jointly invoiced

  • All health products (pharmaceutical, medical, assistive, therapeutic), diagnostic imaging services, and medical laboratory services needed to deliver outpatient services jointly invoiced with the provider’s service fee (doctor/ specialist/nurse/other health care practitioner)

Excludes:

  • Medicines and health products (medical, assistive, therapeutic) separately invoiced from the provider’s service fee (doctor/specialist/nurse and other health care practitioner) (06.1)

  • Diagnostic imaging services and medical laboratory services separately invoiced from the provider’s service fee (doctor/specialist/nurse and other health care practitioner) (06.4.1.0)

  • Patient emergency transportation services and emergency rescue (06.4.2.0)

  • Social assistance services relate to care that enables a person to live independently in a house or apartment, community activities and occupational support given on a continuing or recurrent basis to individuals, such as activities whose primary purpose is social and leisure (13.3.0.3)

06.3 Inpatient Care Services

The overnight stay criterion is the main distinction between outpatient care services (06.2) and inpatient care services (06.3). The type of provider is irrelevant. This may be a hospital, nursing care facility, or facilities classified as ambulatory care providers but which perform occasional procedures requiring overnight accommodation.

It can also include health facilities within any type of establishment that accommodates patients justifying an overnight stay. Tuberculosis hospitals and sanatoriums are often organized to include accommodation along with medical treatment, which is the predominant purpose during a stay in such facilities.

Includes:

  • Inpatient care services comprises treatment and care (including dental) that requires an overnight stay

  • All medical services needed to deliver inpatient care services during the overnight stay even if separately invoiced (for example, lab tests, diagnostic imaging services)

  • Medicines and health products (medical, assistive, therapeutic) needed to deliver inpatient services during the overnight stay even if separately invoiced

Includes also:

  • Expenditures related to the “accommodation costs” for the patient (for example, cooking, cleaning, accommodation) and associated with the hosting of patients’ relatives if indispensable and associated with the overnight stay (both types of costs are to be added if separately invoiced)

  • Beauty treatments carried out in hospitals (for example, cosmetic surgery for other purposes than reconstructive surgery)

Excludes:

  • Hospital day care (with or without admission but no overnight stay) and home-based hospital treatment (06.2)

  • Services received in hospitals or hospital setting without an overnight stay (06.2) including services of facilities, such as surgeries, clinics, and dispensaries, devoted exclusively to outpatient care (06.2)

  • Emergency patient transportation and rescue services (06.4.2.0)

  • Services of nonmedical retirement homes for elderly persons, nonmedical institutions for disabled persons and nonmedical rehabilitation centers providing primarily long-term social support; retirement villages without inpatient medical services (13.3.0.2)

06.3.1 Inpatient Curative and Rehabilitative Services (S)

Comprises curative, dental, and rehabilitative care that requires an overnight stay. Inpatient curative care comprises health care contacts that require an overnight stay during which the principal intent is to relieve symptoms of illness or injury, to reduce the severity of an illness or injury, or to protect against exacerbation and complication of an illness and injury that could threaten the life or normal function. Inpatient rehabilitation services that require an overnight stay aiming at achieving and maintaining optimal functioning.

Includes:

  • Curative/rehabilitative inpatient care services comprise treatment and care (including dental) that requires an overnight stay from any type of provider (for example, a hospital, nursing care facility, or facilities classified as ambulatory care providers but which perform occasional procedures requiring overnight accommodation; services of alcoholism or drug addiction rehabilitation facilities [other than licensed hospitals]; services of mental health convalescent homes or hospitals and any other health facility within any type of establishment that accommodates patients justifying an overnight stay)

  • All medical services needed to deliver inpatient care services during the overnight stay even if separately invoiced (for example, lab tests, diagnostic imaging services)

  • Medicines and health products (medical, assistive, therapeutic) needed to deliver inpatient services during the overnight stay even if separately invoiced

Includes also:

  • Expenditures related to the “accommodation costs” for the patient (for example, cooking, cleaning, accommodation) and associated with the hosting of patients’ relatives if indispensable and associated with the overnight stay (both types of costs are to be added if separately invoiced)

  • Beauty treatments carried out in hospitals (for example, cosmetic surgery for other purposes than reconstructive surgery)

Excludes:

  • Hospital day care (with or without admission but no overnight stay) and home-based hospital treatment (06.2)

  • Services received in hospitals or hospital setting without an overnight stay (06.2) including services of facilities, such as surgeries, clinics, and dispensaries, devoted exclusively to outpatient care (06.2)

  • Emergency patient transportation and rescue services (06.4.2.0)

  • Services of nonmedical retirement homes for elderly persons, nonmedical institutions for disabled persons, and nonmedical rehabilitation centers providing primarily long-term social support; retirement villages without inpatient medical services (13.3.0.2)

06.3.1.0 Inpatient Curative and Rehabilitative Services (S)

Comprises curative, dental, and rehabilitative care that requires an overnight stay. Inpatient curative care comprises health care contacts that require an overnight stay during which the principal intent is to relieve symptoms of illness or injury, to reduce the severity of an illness or injury, or to protect against exacerbation and complication of an illness and injury that could threaten the life or normal function. Inpatient rehabilitation services that require an overnight stay aiming at achieving and maintaining optimal functioning.

Includes:

  • Curative/rehabilitative inpatient care services comprise treatment and care (including dental) that requires an overnight stay from any type of provider (for example, a hospital, nursing care facility, or facilities classified as ambulatory care providers but which perform occasional procedures requiring overnight accommodation; services of alcoholism or drug addiction rehabilitation facilities [other than licensed hospitals]; services of mental health convalescent homes or hospitals and any other health facility within any type of establishment that accommodates patients justifying an overnight stay)

  • All medical services needed to deliver inpatient care services during the overnight stay even if separately invoiced (for example, lab tests, diagnostic imaging services)

  • Medicines and health products (medical, assistive, therapeutic) needed to deliver inpatient services during the overnight stay even if separately invoiced

Includes also:

  • Expenditures related to the “accommodation costs” for the patient (for example, cooking, cleaning, accommodation) and associated with the hosting of patients’ relatives if indispensable and associated with the overnight stay (both types of costs are to be added if separately invoiced)

  • Beauty treatments carried out in hospitals (for example, cosmetic surgery for other purposes than reconstructive surgery)

Excludes:

  • Hospital day care (with or without admission but no overnight stay) and home-based hospital treatment (06.2)

  • Services received in hospitals or hospital setting without an overnight stay (06.2) including services of facilities, such as surgeries, clinics, and dispensaries, devoted exclusively to outpatient care (06.2)

  • Emergency patient transportation and rescue services (06.4.2.0)

  • Services of nonmedical retirement homes for elderly persons, nonmedical institutions for disabled persons, and nonmedical rehabilitation centers providing primarily long-term social support; retirement villages without inpatient medical services (13.3.0.2)

06.3.2 Inpatient Long-Term Care Services (S)

Comprises long-term care services that require an overnight stay.

Inpatient long-term care services do not aim at curing an illness or rehabilitating an individual, but to prevent deterioration of a health condition and remain at the level of health available. Some medical and nursing activities that require an overnight stay are inherent parts of this status quo.

Individuals getting such type of inpatient long-term care might include, for example, the elderly with limited capacity to perform daily activities, physically disabled members of the households, and those with chronic conditions.

Includes:

  • Services of medical convalescent homes or convalescent hospitals; services of homes for the elderly with nursing care; inpatient care hospices; services of palliative care establishments for the terminally ill; services of nursing homes; rest homes with nursing care; services of skilled nursing facilities; services of teaching nursing homes; services of residential mental retardation facilities; and mental health and substance abuse facilities for chronic patient (for example, those with dementia)

  • Services of medical retirement homes for the elderly and medical residence for people with disabilities

  • All medical services needed to deliver inpatient care services during the overnight stay (for example, lab tests, diagnostic imaging services)

  • Medicines and health products (medical, assistive, therapeutic) needed to deliver inpatient services during the overnight stay

Includes also:

  • Expenditures related to the “hotel costs” for the patient (for example, cooking, cleaning, accommodation) and associated with the hosting of patients’ relatives if indispensable and associated with the overnight stay (both types of costs are to be added if separately invoiced)

Excludes:

  • Social protection services (13.3)

  • Nonmedical retirement homes for elderly persons and nonmedical residences for disabled persons (13.3.0.2)

06.3.2.0 Inpatient Long-Term Care Services (S)

Comprises long-term care services that require an overnight stay.

Inpatient long-term care services do not aim at curing an illness or rehabilitating an individual, but to prevent deterioration of a health condition and remain at the level of health available. Some medical and nursing activities that require an overnight stay are inherent parts of this status quo.

Individuals getting such type of inpatient long-term care might include, for example, the elderly with limited capacity to perform daily activities, physically disabled members of the households, and those with chronic conditions.

Includes:

  • Services of medical convalescent homes or convalescent hospitals; services of homes for the elderly with nursing care; inpatient care hospices; services of palliative care establishments for the terminally ill; services of nursing homes; rest homes with nursing care; services of skilled nursing facilities; services of teaching nursing homes; services of residential mental retardation facilities; and mental health and substance abuse facilities for chronic patient (for example, those with dementia)

  • Services of medical retirement homes for the elderly and medical residence for people with disabilities

  • All medical services needed to deliver inpatient care services during the overnight stay (for example, lab tests, diagnostic imaging services)

  • Medicines and health products (medical, assistive, therapeutic) needed to deliver inpatient services during the overnight stay

Includes also:

  • Expenditures related to the “hotel costs” for the patient (for example, cooking, cleaning, and accommodation) and associated with the hosting of patients’ relatives if indispensable and associated with the overnight stay (both types of costs are to be added if separately invoiced)

Excludes:

  • Social protection services (13.3)

  • Nonmedical retirement homes for elderly persons and nonmedical residences for disabled persons (13.3.0.2)

06.4 Other Health Services

Includes:

  • Diagnostic imaging services and medical laboratory services

  • Patient emergency transportation services and emergency rescue

06.4.1 Diagnostic Imaging Services and Medical Laboratory Services (S)

Includes:

  • Services of medical analysis laboratories (for example, urine/blood tests)

  • Diagnostic imaging services including all diagnostic imaging methods (that is computerized tomography, magnetic resonance imaging, and sonography); imaging diagnosis comprises a variety of services that employ imaging technology, such as X-rays and radiation for the diagnosis and monitoring of patients

Excludes:

  • Diagnostic imaging services and medical laboratory services not separately identifiable from outpatient preventive services (06.2.1)

  • Dental services (06.2.2)

06.4.1.0 Diagnostic Imaging Services and Medical Laboratory Services (S)

Includes:

  • Services of medical analysis laboratories (for example, urine/blood tests)

  • Diagnostic imaging services including all diagnostic imaging methods (that is computerized tomography, magnetic resonance imaging, sonography); imaging diagnosis comprises a variety of services that employ imaging technology, such as X-rays and radiation for the diagnosis and monitoring of patients

Excludes:

  • Diagnostic imaging services and medical laboratory services not separately identifiable from outpatient preventive services (06.2.1)

  • Dental services (06.2.2)

06.4.2 Patient Emergency Transportation Services and Emergency Rescue (S)

Includes:

  • Ambulance services for individuals with or without emergency rescue

  • Individual’s transportation by airplane and vehicles for medical emergency reasons whether or not they have been specially adjusted for a medical purpose

Includes also:

  • Memberships for emergency transport services

06.4.2.0 Patient Emergency Transportation Services and Emergency Rescue (S)

Includes:

  • Ambulance services for individuals with or without emergency rescue

  • Individual’s transportation by airplane and vehicles for medical emergency reasons whether or not they have been specially adjusted for a medical purpose

Includes also:

  • Memberships for emergency transport services

07 Transport

Division 07 distinguishes four main categories of goods and services for the purpose of transportation: purchase of vehicles, goods and services for the operation of the personal transport equipment, the transport services provided by the market, and the transport services of goods.

The purchase of vehicles covers motor cars, motorcycles, bicycles, and animal-drawn vehicles. Due to the high share of second-hand motor vehicles in private consumption expenditures, separate subclasses for new and for secondhand motor cars are distinguished.

The second group concerning the operation of personal transport equipment cover parts and accessories for personal transport equipment, fuels and lubricants, and the repair and maintenance of personal transport equipment. This group also includes expenditures for parking spaces in garages or in public places, expenditures for tolls, and expenditures to acquire a driving certificate.

Passenger transport services are structured by the mode of transport. However, due to the fact that transport tickets may cover more than one mode of transport, a class for the combined passenger transport was created (07.3.6).

The fourth group covers postal and courier services, removal and storage services, and the delivery services of any kind of goods when charged separately.

Division 07 does not cover purchases of recreational vehicles, such as camper vans, caravans, trailers, airplanes, and boats (09.1.2).

07.1 Purchase of Vehicles

Includes:

  • Purchase of vehicles used for transport

Excludes:

  • Purchases of recreational vehicles, such as camper vans, caravans, trailers, airplanes, and boats (09.1.2.1, 09.1.2.2, 09.1.2.3)

07.1.1 Motor Cars (D)

Includes:

  • Motor cars, passenger vans, station wagons, estate cars, and the like with either two-wheel drive or four-wheel drive

Includes also:

  • Racing motor vehicles and vehicles for shows

Excludes:

  • Invalid carriages (06.1.3.3)

  • Camper vans (09.1.2.1)

  • Golf carts (09.1.2.9)

07.1.1.1 New Motor Cars (D)

Includes:

  • New motor cars, passenger vans, station wagons, estate cars, and the like with either two-wheel drive or four-wheel drive

Includes also:

  • Racing motor vehicles and vehicles for shows

Excludes:

  • Invalid carriages (06.1.3.3)

  • Camper vans (09.1.2.1)

  • Golf carts (09.1.2.9)

07.1.1.2 Second-Hand Motor Cars (D)

Includes:

  • Used or second-hand motor cars, passenger vans, station wagons, estate cars, and the like with either two-wheel drive or four-wheel drive

Includes also:

  • Second-hand racing motor vehicles and vehicles for shows

Excludes:

  • Invalid carriages (06.1.3.3)

  • Camper vans (09.1.2.1)

  • Golf carts (09.1.2.9)

07.1.2 Motorcycles (D)

Includes:

  • Motorcycles of all types, motor scooters, and motorized bicycles with combustion engines

Includes also:

  • Sidecars

  • Used or second-hand motorcycles

07.1.2.0 Motorcycles (D)

Includes:

  • Motorcycles of all types, scooters, and motorized bicycles with combustion engines

Includes also:

  • Sidecars

  • Used or second-hand motorcycles

07.1.3 Bicycles (D)

Includes:

  • Bicycles and tricycles of all types

  • Rickshaws

  • E-bikes, pedelecs

Excludes:

  • Motorized bicycles with combustion engines (07.1.2.0)

  • Toy bicycles and tricycles (09.2.1.2)

07.1.3.0 Bicycles (D)

Includes:

  • Bicycles and tricycles of all types

  • Rickshaws

  • E-bikes, pedelecs

Excludes:

  • Motorized bicycles with combustion engines (07.1.2.0)

  • Toy bicycles and tricycles (09.2.1.2)

07.1.4 Animal-Drawn Vehicles (D)

Includes:

  • Animal-drawn vehicles

  • Animals required to draw the vehicles and related equipment (yokes, collars, harnesses, bridles, reins, and so on)

Excludes:

  • Horses and ponies, horse- or pony-drawn vehicles, and related equipment purchased for recreational purposes (09.1.2.4)

07.1.4.0 Animal-Drawn Vehicles (D)

Includes:

  • Animal-drawn vehicles

  • Animals required to draw the vehicles and related equipment (yokes, collars, harnesses, bridles, reins, and so on)

Excludes:

  • Horses and ponies, horse- or pony-drawn vehicles, and related equipment purchased for recreational purposes (09.1.2.4)

07.2 Operation of Personal Transport Equipment

Purchases of parts, accessories, or lubricants made by households with the intention of undertaking the maintenance; repair or intervention themselves should be shown under (07.2.1) or (07.2.2). If households pay an enterprise to carry out the maintenance, repair, or fitting, the total value of the service, including the costs of the materials used, should be shown under (07.2.3).

07.2.1 Parts and Accessories for Personal Transport Equipment (SD)

Includes:

  • Tires (new, used, or retreaded), inner tubes, spark plugs, batteries, shock absorbers, filters, pumps, and other replacement parts or accessories for personal transport equipment, crash helmets for motorcycles and bicycles

  • Hubcaps, if bought separately

  • Baby and children seats for cars

  • Fire extinguishers for transport equipment; products specifically for the cleaning and maintenance of transport equipment, such as paints, chrome cleaners, sealing compounds, and bodywork polishes; covers for motor cars, motorcycles, and so on

  • Dash cameras

Includes also:

  • Crash helmets with cameras incorporated

Excludes:

  • Nonspecific products for cleaning and maintenance, such as distilled water, household sponges, chamois leathers, detergents, and so on (05.6.1.1)

  • Charges for the fitting of parts and accessories and for the painting, washing, and polishing of bodywork (07.2.3.0)

  • Car radios (08.1.4.0)

07.2.1.1 Tires (SD)

Includes:

  • New, used, or retreaded, including inner tubes for car, bicycles, motorcycles, and so on

07.2.1.2 Parts for Personal Transport Equipment (SD)

Includes:

  • Spark plugs, batteries, shock absorbers, filters, pumps, and other parts for personal transport equipment

  • Rims

Excludes:

  • Charges for the fitting of parts and accessories and for the painting, washing, and polishing of bodywork (07.2.3.0)

07.2.1.3 Accessories for Personal Transport Equipment (SD)

Includes:

  • GPS (satellite positioning) equipment for personal transport

  • Accessories for personal transport equipment but bought separately

  • Fire extinguishers for transport equipment

  • Products specifically for the cleaning and maintenance of transport equipment, such as paints, chrome cleaners, sealing compounds, and bodywork polishes; covers for motor cars, motorcycles, and so on

  • Hubcaps, if bought separately

  • Crash helmets for motorcycles and bicycles

  • Baby and child seats for cars, motorcycles, and bicycles

  • Dash cameras

Includes also:

  • Crash helmets with cameras incorporated

Excludes:

  • Nonspecific products for cleaning and maintenance, such as distilled water, household sponges, chamois leathers, detergents, and so on (05.6.1.1)

  • Car radios (08.1.4.0)

07.2.2 Fuels and Lubricants for Personal Transport Equipment (ND)

Includes:

  • Petrol and other fuels, such as diesel, liquid petroleum gas, alcohol, and two-stroke mixtures

  • Lubricants, brake and transmission fluids, coolants, and additives

  • Electricity as fuel for cars when separately priced from other electricity

  • Hydrogen

  • Fuel for major tools and equipment covered under 05.5.1 and recreational vehicles covered under 09.1.2

Excludes:

  • Charges for service of oil changes and greasing (07.2.3.0)

07.2.2.1 Diesel (ND)

Includes:

  • Diesel

07.2.2.2 Petrol (ND)

Includes:

  • Petrol/gasoline

Includes also:

  • Petrol blends, such as petrol with 10 percent ethanol

Excludes:

  • Two-stroke mixtures (07.2.2.3)

07.2.2.3 Other Fuels for Personal Transport Equipment (ND)

Includes:

  • Liquid petroleum gas, natural gas (compressed natural gas, liquefied natural gas), alcohol, biofuels (ethanol, methanol), methane, and two-stroke mixtures

  • Electricity as fuel for cars when separately priced from other electricity

  • Hydrogen

07.2.2.4 Lubricants (ND)

Includes:

  • Lubricants, brake and transmission fluids, coolants, and additives

Excludes:

  • Charges for oil change and greasing service (07.2.3.0)

07.2.3 Maintenance and Repair of Personal Transport Equipment (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Services purchased for the maintenance and repair of personal transport equipment, such as fitting of parts and accessories, wheel balancing, breakdown services, oil changes, greasing, and washing

  • Installation of car cameras

  • Locksmith services for cars

Excludes:

  • Separate purchases of parts, accessories, or lubricants made by households with the intention of undertaking the maintenance or repair themselves (07.2.1, 07.2.2.4)

  • Roadworthiness tests (07.2.4.3)

07.2.3.0 Maintenance and Repair of Personal Transport Equipment (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Services purchased for the maintenance and repair of personal transport equipment, such as fitting of parts and accessories, wheel balancing, breakdown services, oil changes, greasing, and washing

  • Installation of car cameras

  • Locksmith services for cars

Excludes:

  • Separate purchases of parts, accessories, or lubricants made by households with the intention of undertaking the maintenance or repair themselves (07.2.1, 07.2.2.4)

  • Roadworthiness tests (07.2.4.3)

07.2.4 Other Services in Respect of Personal Transport Equipment (S)

Includes:

  • Rental of garages or parking spaces not providing parking in connection with the dwelling

  • Rental of municipal street parking

  • Parking meters

  • Charges for parking places in parking garages, such as those in shopping centers hired for a few hours or less (including valet service)

Includes also:

  • Parking permits for designated areas (for example, residents parking permits)

  • Tolls (bridges, tunnels, shuttle ferries, and motorways) and parking meters

  • Charges for hire or purchase of electronic tags and toll devices

  • Driving lessons, driving tests, and driving licenses

  • Roadworthiness tests

  • Hire of personal transport equipment without drivers

Excludes:

  • Rental of a garage or parking space to provide parking in connection with the dwelling (04.1.2.2)

  • Hire of a car with driver; payments for private arrangements of sharing a means of transport (carpooling, dynamic ridesharing) (07.3.2.2)

  • Service charges for insurance in respect of personal transport equipment (12.1.4.1)

07.2.4.1 Services for Parking (S)

Includes:

  • Rental of garages or parking spaces not providing parking in connection with the dwelling

  • Rental of municipal street parking

  • Parking meters

  • Charges for parking places in parking garages, such as those in shopping centers hired for a few hours or less (including valet service)

Includes also:

  • Parking permits for designated areas (for example, residents parking permits)

Excludes:

  • Rental of a garage or parking space to provide parking in connection with the dwelling (04.1.2.2)

07.2.4.2 Toll Facilities (S)

Includes:

  • Tolls (bridges, tunnels, shuttle ferries, and motorways)

  • Charges for hire or purchase of electronic tags and toll devices

07.2.4.3 Driving Lessons, Tests, Licenses, and Road Worthiness Tests (S)

Includes:

  • Driving lessons, tests, licenses

  • Roadworthiness tests and pollution control tests

Includes also:

  • Ownership transfer charges for vehicles

  • Driving lessons, test, licenses for recreation transport vehicles (mobile homes, boats, and planes)

07.2.4.4 Hire of Personal Transport Equipment Without Driver (S)

Includes:

  • Hire of personal transport equipment without driver (for example, car hire)

  • Fees for the participation in “car-sharing” or “bike-sharing” programs

Excludes:

  • Payments for private arrangements of sharing a means of transport (carpooling, dynamic ridesharing) (07.3.2.2)

  • Service charges for insurance in respect of personal transport equipment (12.1.4.1)

07.3 Passenger Transport Services

Purchases of transport services are generally classified by mode of transport. When a ticket covers two or more modes of transport—for example, intraurban bus and underground or interurban train and ferry—and the expenditure cannot be apportioned between them, then such purchases should be classified in 07.3.5.0.

Costs of meals, snacks, drinks, refreshments, or accommodation services have to be included if covered by the fare and not separately priced. If separately priced, these costs have to be classified in Division 11.

School transport services are included, but ambulance services are excluded (06.4.2.0).

07.3.1 Passenger Transport by Railway (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by train, high-speed trains, maglevs, light-rail, tram, and underground

  • Accompanied transport of private vehicles

Excludes:

  • Funicular transport (07.3.6.0)

07.3.1.1 Passenger Transport by Train (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by train, high-speed trains, maglevs

Excludes:

  • Funicular transport (07.3.6.0)

07.3.1.2 Passenger Transport by Rapid Transit and Tram (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by rapid transit (electric railways that operate on an exclusive right-of-way, which cannot be accessed by pedestrians or other vehicles of any sort, and which is often grade separated in tunnels or on elevated railways), light-rail, underground, rubber-tired metros, and people movers

  • Transport of individuals and groups of persons and accompanied luggage by tram

07.3.2 Passenger Transport by Road (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by bus, trolleybus, and coach

  • Transport of individuals and groups of persons and accompanied luggage by share taxis (mode of transport which falls between both taxicabs and buses; these vehicles for hire are typically smaller than buses and usually take passengers on a fixed or semifixed route without timetables; they may stop anywhere to pick up or drop off their passengers; often found in developing countries, the vehicles used as share taxis range from four-seat cars to minibuses; and they are often owner-operated)

  • Transport of individuals and groups of persons and accompanied luggage by taxi and hired vehicle with driver

  • Transport of individuals and groups of persons and accompanied luggage through private arrangements, such as carpooling and ridesharing

  • Local school bus charter services, with driver

  • Scheduled interurban or intercity school bus charter services

  • Transportation services of pupils by school bus between their homes and school and between schools, including in rural areas

  • Transport of individuals and groups of persons and accompanied luggage by animal-drawn vehicles with driver

Includes also:

  • Tuk-tuks, rickshaws, and motorcycles as taxis

07.3.2.1 Passenger Transport by Bus and Coach (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by bus, trolleybus, and coach

  • Transport of individuals and groups of persons and accompanied luggage by share taxis (mode of transport which falls between both taxicabs and buses; these vehicles for hire are typically smaller than buses and usually take passengers on a fixed or semifixed route without timetables; they may stop anywhere to pick up or drop off their passengers; often found in developing countries, the vehicles used as share taxis range from four-seat cars to minibuses; and they are often owner-operated)

07.3.2.2 Passenger Transport by Taxi and Hired Car with Driver (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by taxi and hired vehicle with driver

  • Transport of individuals and groups of persons and accompanied luggage through private arrangements, such as carpooling and ridesharing

07.3.2.3 Passenger Transport for Students to and from School (S)

Includes:

  • Local school bus charter services, with driver

  • Scheduled interurban or intercity school bus charter services

  • Transportation services of pupils by school bus between their homes and school and between schools, including in rural areas

07.3.2.9 Other Passenger Transport by Road (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by animal-drawn vehicles with driver

Includes also:

  • Tuk-tuks, rickshaws, and motorcycles as taxis

Excludes:

  • Bus with driver (07.3.2.1)

07.3.3 Passenger Transport by Air (S)

Includes:

  • Transport of individuals and groups of persons and luggage by airplane and helicopter. It includes also passenger drones and multicopters

07.3.3.1 Passenger Transport by Air, Domestic (S)

Includes:

  • Domestic scheduled and chartered air passenger transportation services

  • Domestic transport of individuals and groups of persons and accompanied luggage by airplane and helicopter

  • Domestic air passenger transport by drones and multicopters

07.3.3.2 Passenger Transport by Air, International (S)

Includes:

  • Transportation of passengers by air on an international scheduled and chartered fight

07.3.4 Passenger Transport by Sea and Inland Waterway (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by ship, boat, ferry, hovercraft, and hydrofoil

  • Accompanied transport of private vehicles

  • Water taxis

07.3.4.0 Passenger Transport by Sea and Inland Waterway (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by ship, boat, ferry, hovercraft, and hydrofoil

  • Accompanied transport of private vehicles

  • Water taxis

07.3.5 Combined Passenger Transport (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by two or more modes of transport when the expenditure cannot be apportioned between them

  • Multiple modes of transport (for example, bus, tram, subway, and ferry) available on the one ticket

Includes also:

  • Accompanied transport of private vehicles (for example, train ticket that includes transport of private vehicles)

Excludes:

  • Package holidays (09.8.0.0)

07.3.5.0 Combined Passenger Transport (S)

Includes:

  • Transport of individuals and groups of persons and accompanied luggage by two or more modes of transport when the expenditure cannot be apportioned between them

  • Multiple modes of transport (for example, bus, tram, subway, and ferry) available on the one ticket

Includes also:

  • Accompanied transport of private vehicles (for example, train ticket that includes transport of private vehicles)

Excludes:

  • Package holidays (09.8.0.0)

07.3.6 Other Purchased Transport Services (S)

Includes:

  • Funicular, elevator, cable car, and chairlift transport

  • Services of porters and left-luggage (services to store travelers’ luggage for limited amount of time) and luggage-forwarding offices

  • Travel agents’ commissions, if separately priced

  • Transporter bridges, elevators, incline elevators

Excludes:

  • Cable car and chairlift transport at ski resorts and holiday centers (09.4.6.2)

07.3.6.0 Other Purchased Transport Services (S)

Includes:

  • Funicular, elevator, cable car, and chairlift transport

  • Services of porters and left-luggage (services to store travelers’ luggage for limited amount of time) and luggage-forwarding offices

  • Travel agents’ commissions, if separately priced

  • Transporter bridges, elevators, incline elevators

Excludes:

  • Cable car and chairlift transport at ski resorts and holiday centers (09.4.6.2)

07.4 Transport Services of Goods

07.4.1 Postal and Courier Services (S)

Includes:

  • New postage stamps and other prefranked postal matter (for example, prefranked postcards, envelopes, and so on)

  • Courier services for letters

  • Parcels delivery services (incoming and outcoming— parcels sent and delivery of parcels at home)

  • Courier services for small parcels

  • Parcel delivery services of goods purchased online

  • Removal services of furniture

  • Storage services of furniture

  • Services of delivery of goods, such as furniture, supermarket shopping when charged separately

  • Local delivery of purchased items, such as take-out meals, groceries, and prescription drugs

  • Delivery services generally made immediately after the item is purchased or scheduled within a short time

Excludes:

  • Self-storage units (04.1.2.2)

  • Installation of goods (furniture, electric devices, and so on) when separately charged (05.1.2.0 or 05.3.3.0)

  • Services of porters and left-luggage and luggage-forwarding offices (07.3.6.0)

  • Services of delivery of goods, such as furniture, supermarket shopping when charged separately (07.4.9.2)

  • Not prefranked postcards, envelopes, and other not pre-franked postal matter (09.7.3.0)

07.4.1.1 Letter Handling Services (S)

Includes:

  • New postage stamps and other prefranked postal matter (for example, prefranked postcards, envelopes, and so on)

  • Courier services for letters

Excludes:

  • Not prefranked postcards, envelopes, and other not pre-franked postal matter (09.7.3.0)

07.4.1.2 Courier and Parcel Delivery Services (S)

Includes:

  • Parcel delivery services (incoming and outgoing—parcels sent and delivery of parcels to a home)

  • Courier services for small parcels

  • Parcel delivery services of goods purchased online

Excludes:

  • Services of delivery of goods, such as furniture, supermarket shopping when charged separately (07.4.9.2)

07.4.9 Other Transport of Goods (S)

Includes:

  • Removal services of furniture

  • Storage services of furniture

  • Services of delivery of goods, such as furniture, supermarket shopping when charged separately

  • Local delivery of purchased items, such as take-out meals, groceries, and prescription drugs

  • Delivery services generally made immediately after the item is purchased or scheduled within a short time

Excludes:

  • Self-storage units (04.1.2.2)

  • Installation of goods (furniture, electric devices, and so on) when separately charged (05.1.2.0 or 05.3.3.0)

  • Services of porters and left-luggage and luggage-forwarding offices (07.3.6.0)

07.4.9.1 Removal and Storage Services (S)

Includes:

  • Removal services of furniture

  • Storage services of furniture

Excludes:

  • Self-storage units (04.1.2.2)

  • Services of porters and left-luggage and luggage-forwarding offices (07.3.6.0)

07.4.9.2 Delivery of Goods (S)

Includes:

  • Services of delivery of goods, such as furniture, supermarket shopping when charged separately

  • Local delivery of purchased items, such as take-out meals, groceries, and prescription drugs

  • Delivery services generally made immediately after the item is purchased or scheduled within a short time

Excludes:

  • Installation of goods (furniture, electric devices, and so on) when separately charged (05.1.2.0 or 05.3.3.0)

08 Information and Communication

Division 08 covers three main groups of goods and services: information and communication equipment, including equipment for the reception, recording, and reproduction of sound and vision; software; and information and communication services. Information and communication services include telephone other communication services, internet access services, TV and radio licenses, and fee and subscription services, including streaming services of film and music.

Division 08 also includes repair, maintenance, and hire of information and communication equipment.

08.1 Information and Communication Equipment

08.1.1 Fixed Telephone Equipment (D)

Includes:

  • Telephones, radiotelephones, telefax machines, telephone-answering machines, and telephone loudspeakers

Excludes:

  • Telefax and telephone-answering facilities provided by personal computers (08.1.3.1)

08.1.1.0 Fixed Telephone Equipment (D)

Includes:

  • Telephones, radiotelephones, telefax machines, telephone-answering machines, and telephone loudspeakers

Excludes:

  • Telefax and telephone-answering facilities provided by personal computers (08.1.3.1)

08.1.2 Mobile Telephone Equipment (D)

Includes:

  • Mobile telephone handsets, including devices with several functions

  • Smartphones

08.1.2.0 Mobile Telephone Equipment (D)

Includes:

  • Mobile telephone handsets, including devices with several functions

  • Smartphones

08.1.3 Information Processing Equipment (D)

Includes:

  • Personal computers, printers, scanners, monitors, projectors, virtual reality head mounts, modems, routers, network switches, and the like, keyboards, mice, digitizers

  • Tablets

  • Calculators, including pocket calculators

  • Typewriters and word processors (device)

  • Toner and ink cartridges, laser printer drums, and typewriter ribbons

Includes also:

  • Telefax and telephone-answering facilities provided by personal computers

Excludes:

  • Computer software packages, such as operating systems, applications, languages, and so on (08.2.0.0)

  • Video game software; video game computers and consoles (09.2.1.1)

  • Removable media containing books, dictionaries, encyclopedias, foreign language trainers, multimedia presentations, and so on in the form of software (09.7.1)

08.1.3.1 Computers, Laptops, and Tablets (D)

Includes:

  • Desktop computers and laptops

  • Tablets

Includes also:

  • Telefax and telephone-answering facilities provided by personal computers

Excludes:

  • Computer software packages, such as operating systems, applications, languages, and so on (08.2.0.0)

  • Video game software; video game computers and consoles (09.2.1.1)

  • Removable media containing books, dictionaries, encyclopedias, foreign language trainers, multimedia presentations, and so on in the form of software (09.7.1)

08.1.3.2 Peripheral Equipment and Its Consumable Components (D)

Includes:

  • Printers, scanners, monitors, projectors, virtual reality head mounts, modems, routers, network switches, and the like, keyboards, mice, digitizers

  • Typewriters and word processors (device)

  • Toner and ink cartridges, laser printer drums, and typewriter ribbons

  • Calculators, including pocket calculators

  • Web cameras

08.1.4 Equipment for the Reception, Recording, and Reproduction of Sound and Vision (D)

Includes:

  • Television sets, video cassette players and recorders, digital video recorders, DVD players, Blu-ray players, Ultra HD Blu-ray players, streaming boxes, television aerials of all types

  • Radio receivers (radio sets, digital radio sets, internet radio sets, satellite radio sets, car radios, radio clocks, two-way radios, amateur radio receivers, and transmitters)

  • Portable and nonportable CD players

  • Portable and nonportable sound players

  • Stereo equipment and CD radio cassette recorder

  • Turntables, tuners, amplifiers, cassette decks, microphones and speakers, disc jockey equipment, and karaoke systems

  • Car stereos, video systems for cars

  • Set-top boxes, satellite receivers, IPTV receivers, and television converter boxes

  • Digital media players

  • Headphone, earplugs, and wireless/Bluetooth headsets

08.1.4.0 Equipment for the Reception, Recording, and Reproduction of Sound and Vision (D)

Includes:

  • Television sets, video cassette players and recorders, digital video recorders, DVD players, Blu-ray players, Ultra HD Blu-ray players, streaming boxes, and television aerials of all types

  • Radio receivers (radio sets, digital radio sets, internet radio sets, satellite radio sets, car radios, radio clocks, two-way radios, amateur radio receivers, and transmitters)

  • Portable and nonportable CD players

  • Portable and nonportable sound players

  • Stereo equipment and CD radio cassette recorder

  • Turntables, tuners, amplifiers, cassette decks, microphones and speakers, disc jockey equipment, and karaoke systems

  • Car stereos, video systems for cars

  • Set-top boxes, satellite receivers, IPTV receivers, and television converter boxes

  • Digital media players

  • Headphone, earplugs, and wireless/Bluetooth headsets

08.1.5 Unrecorded Recording Media (SD)

Includes:

  • CDs (R and RW)

  • DVDs (R and RW)

  • Blu-ray discs (R and RE)

  • Video cassettes

  • Audio tapes, cassettes, DAT

  • External hard drives and solid state disks, network attached storage

  • USB keys/flash drives

  • SD cards, compact flash, and so on

  • Magnetic data tapes

  • Other magnetic recording media

  • Other optical recording media

  • Other recording media (phase-change recording media, holographic recording media, molecular recording media)

Excludes:

  • Recorded recording media (09.5.2.0, 09.7.1)

08.1.5.0 Unrecorded Recording Media (SD)

Includes:

  • CDs (R and RW)

  • DVDs (R and RW)

  • Blu-ray discs (R and RE)

  • Video cassettes

  • Audio tapes, cassettes, DAT

  • External hard drives and solid state disks, network attached storage

  • USB keys/flash drives

  • SD cards, compact flash, and so on

  • Magnetic data tapes

  • Other magnetic recording media

  • Other optical recording media

  • Other recording media (phase-change recording media, holographic recording media, molecular recording media)

Excludes:

  • Recorded recording media (09.5.2.0, 09.7.1)

08.1.9 Other Information and Communication Equipment and Accessories (D)

Includes:

  • Walkie-talkies

  • Baby monitors

  • Smartwatches

  • Fitness trackers, and other wearable devices, such as, for example, smart glasses that do not work without a smart-phone or tablet

  • E-book readers

  • Chargers, batteries, cables, power banks, docking stations, covers, cases, cradles, and mounts

  • Disk drives, processors, main boards, and hard drives

08.1.9.1 Other Information and Communication Equipment (D)

Includes:

  • Walkie-talkies

  • Baby monitors

  • Smartwatches

  • Fitness trackers, and other wearable devices, such as smart glasses that do not work without a smartphone or tablet

  • E-book readers

08.1.9.2 Other Information and Communication Accessories (SD)

Includes:

  • Chargers, batteries for information and communication equipment, cables, power banks, docking stations, covers, cases, cradles, and mounts

  • Disk drives, processors, main boards, and hard drives

08.2 Software Excluding Games

08.2.0 Software (S)

Includes:

  • Computer software packages, such as operating systems, applications, programming languages, and so on

Includes also:

  • Software subscriptions and use of online software

  • Apps

Excludes:

  • Video game software (09.2.1.1)

  • Removable media containing books, dictionaries, encyclopedias, foreign language trainers, multimedia presentations, and so on in the form of software (09.7.1.1)

08.2.0.0 Software (S)

Includes:

  • Computer software packages, such as operating systems, applications, programming languages, and so on

Includes also:

  • Software subscriptions and use of online software

  • Apps

Excludes:

  • Video game software (09.2.1.1)

  • Removable media containing books, dictionaries, encyclopedias, foreign language trainers, multimedia presentations, and so on in the form of software (09.7.1.1)

08.3 Information and Communication Services

08.3.1 Fixed Communication Services (S)

Includes:

  • Installation and subscription costs of personal telephone equipment

  • Telephone calls from a private line or from a public line (public telephone box, post office cabin, and so on)

  • Local, regional, national, and international calls

  • Telephone calls from hotels, cafés, restaurants, and the like

08.3.1.0 Fixed Communication Services (S)

Includes:

  • Installation and subscription costs of personal telephone equipment

  • Telephone calls from a private line or from a public line (public telephone box, post office cabin, and so on)

  • Local, regional, national, and international calls

  • Telephone calls from hotels, cafés, restaurants, and the like

08.3.2 Mobile Communication Services (S)

Includes:

  • National calls, including voice and video calls

  • International calls, including voice and video calls

  • Messages, including voice, written (short message service), and image (multimedia message service) messages, and subscription fees for other messengers

  • Additional calling features, such as voicemail and call display, whether sold separately or bundled with the mobile local service plan

  • Voice and messaging cell phone plans that also include limited data

  • Mobile phone voice, text, and data plans

  • Other mobile telephone services

Includes also:

  • Costs of telephone equipment if included in subscription costs

  • Mobile phones included in a package, that is, prepaid or postpaid packages, generally tied to a specific operator for a certain period of time if not separately priced

08.3.2.0 Mobile Communication Services (S)

Includes:

  • National calls, including voice and video calls

  • International calls, including voice and video calls

  • Messages, including voice, written (short message service), and image (multimedia message service) messages, and subscription fees for other messengers

  • Additional calling features, such as voicemail and call display, whether sold separately or bundled with the mobile local service plan

  • Voice and messaging cell phone plans that also include limited data

  • Mobile phone voice, text, and data plans

  • Other mobile telephone services

Includes also:

  • Costs of telephone equipment if included in subscription costs

  • Mobile phones included in a package, that is, prepaid or postpaid packages, generally tied to a specific operator for a certain period of time if not separately priced

08.3.3 Internet Access Provision Services and Net Storage Services (S)

Includes:

  • Internet access services provided by operators of wired, wireless, or satellite infrastructure

  • Cloud storage, file hosting, and web hosting services

  • Subscriptions for email services

Includes also:

  • Activation and installation fees and monthly rate

08.3.3.0 Internet Access Provision Services and Net Storage Services (S)

Includes:

  • Internet access services provided by operators of wired, wireless, or satellite infrastructure

  • Cloud storage, file hosting, and web hosting services

  • Subscriptions for email services

Includes also:

  • Activation and installation fees and monthly rate

08.3.4 Bundled Telecommunication Services (S)

Includes:

  • Telephony/internet/television packages

  • Any combination of telecommunication package

08.3.4.0 Bundled Telecommunication Services (S)

Includes:

  • Telephony/internet/television packages

  • Any combination of telecommunication package

08.3.5 Repair and Rental of Information and Communication Equipment (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of all information and communication equipment

  • Rental of telephones, telefax machines, telephone-answering machines, and telephone loudspeakers

  • Rental of wireless telephone equipment

  • Rental of internet access provision equipment

  • Rental of telegraphy, telex, telefax, radiotelephony, radio-telegraphy, and radiotelex equipment

08.3.5.0 Repair and Rental of Information and Communication Equipment (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of all information and communication equipment

  • Rental of telephones, telefax machines, telephone-answering machines, and telephone loudspeakers

  • Rental of wireless telephone equipment

  • Rental of internet access provision equipment

  • Rental of telegraphy, telex, telefax, radiotelephony, radio-telegraphy, and radiotelex equipment

08.3.9 Other Information and Communication Services (S)

Includes:

  • Telegraphy, telex, and telefax services

  • Voice over Internet Protocol provision (nomadic use)

  • TV and radio licenses

  • Subscription to cable T V, satellite T V, IPTV, and Pay-TV

  • Streaming services

  • Online videorecorder services (web-based DVR services)

  • Video-on-demand services

  • Rental or subscription of CDs, videotapes, DVDs, Blu-ray discs, and software (excluding game software)

Includes also:

  • Radiotelephony, radiotelegraphy, and radiotelex services

  • Software installation services

  • Rental/lease fees for a decoder, TV set-top boxes, and so on

Excludes:

  • Rental or subscription of video game software and online games (09.4.3.1)

  • Audiovisual content purchased online for immediate downloading (09.5.2.0)

08.3.9.1 TV and Radio Licenses and Fees (S)

Includes:

  • TV and radio licenses

08.3.9.2 Subscription to Audiovisual Content, Streaming Services, and Rentals of Audiovisual Content (S)

Includes:

  • Streaming services (film and music)

  • Rental, download or subscription of CDs, videotapes, DVDs, Blu-ray discs, and software (excluding game software)

  • Subscription to cable TV, satellite T V, IPTV, and Pay-TV

  • Online videorecorder services (web-based DVR services)

  • Video-on-demand services

  • Subscription to TV via decoder and rental of decoders

Excludes:

  • Rental or subscription of video game software and online games (09.2.1.1)

  • Audiovisual content purchased online for immediate downloading (09.5.2.0)

08.3.9.9 Other Information and Communication Services (S)

Includes:

  • Telegraphy, telex, and telefax services

  • Radiotelephony, radiotelegraphy, and radiotelex services

  • Voice over Internet Protocol provision (nomadic use)

  • Rental/lease fees for a decoder

  • Software installation services

09 Recreation, Sport, and Culture

Division 09 covers a wide range of goods and services for recreation, sport, and culture, and it is structured into eight groups. The first group covers recreation durables: photographic equipment, other major durables for recreation, such as camper vans, boats, yachts, airplanes, and the like. Division 09.2 covers nonmajor durable recreational goods, such as games and toys, including video game computers, celebration articles, equipment for sport, camping, and open-air recreation. The third group covers garden products and plants and flowers and purchases of pets and expenditures for pets, excluding veterinary services. Recreational services cover rental, maintenance, and repair of goods classified in Division 09, veterinary and other services for pets, recreational and leisure services, such as amusement parks, games of chance and expenditures for sporting services, both expenditures for practising sports as well as expenditures for attendance of sports events.

Division 09.5 covers cultural goods, such as musical instruments and audiovisual media, followed by cultural services (cinema, theatre, concert, museum, and other cultural sites, and photographic services). Whether books or newspapers are in printed or electronic form is irrelevant for classifying them under 09.7.

The last group (09.8) covers package holidays, which as a bundle include all kinds of services, such as transportation, accommodation, food provision, tour guide, and so on. Expenditures for package holidays cannot be split into its components and thus a separate classification category was created. The length of the package holiday and whether the holiday destination is within the home country or outside does not matter.

09.1 Recreational Durables

09.1.1 Photographic and Cinematographic Equipment and Optical Instruments (D)

Includes:

  • Still cameras, movie cameras and sound-recording cameras, film and slide projectors, enlargers, and film processing equipment

  • Video cameras, including camcorders, action cameras

  • Screens, viewers, lenses (including zoom lenses), lenses, flash attachments, filters, exposure meters, and so on

  • Photographic developer and photographic paper

  • Binoculars, microscopes, telescopes, and compasses

Includes also:

  • Separate material purchased by households with the intention of undertaking the repairs themselves

  • Batteries and chargers for cameras and other photographic and cinematographic equipment

Excludes:

  • Dash cameras (07.2.1.3)

  • Webcams (08.1.3.2)

09.1.1.1 Cameras (D)

Includes:

  • Still cameras, movie cameras and sound-recording cameras, film and slide projectors, enlargers, and film processing equipment

  • Video cameras, including camcorders, action cameras

Includes also:

  • Separate material purchased by households with the intention of undertaking the repairs themselves

Excludes:

  • Dash cameras (07.2.1.3)

  • Webcams (08.1.3.2)

09.1.1.2 Accessories for Photographic and Cinematographic Equipment (D)

Includes:

  • Screens, viewers, lenses (including zoom lenses), lenses, flash attachments, filters, exposure meters, and so on

  • Photographic developer and photographic paper

Includes also:

  • Separate material purchased by households with the intention of undertaking the repairs themselves

  • Camera-specific batteries and chargers

09.1.1.3 Optical Instruments (D)

Includes:

  • Binoculars, microscopes, telescopes, and compasses

09.1.2 Major Durables for Recreation (D)

Includes:

  • Camper vans, caravans, and trailers

  • Airplanes, microlight aircraft, gliders, hang gliders, and hot-air balloons

  • Boats, yachts, outboard motors, sails, rigging, and superstructures

  • Vessels for recreation, sailboats, sailboards, and water sport boards

  • Canoes, kayaks, and windsurfing boards

  • Sea-diving equipment

  • Horses and ponies, horse- or pony-drawn vehicles, camels, and dromedaries, purchased for recreational purposes and related equipment (harnesses, bridles, reins, saddles, and so on)

  • Golf carts

  • Large steel-frame swimming pools for the garden

  • Billiard tables, ping-pong tables, pinball machines, gaming machines, and so on

  • Bicycles with four wheels

  • Other major durables for recreation n.e.c.

Includes also:

  • Separate material purchased by households with the intention of undertaking the repairs themselves

Excludes:

  • Horses and ponies, horse- or pony-drawn vehicles, camels and dromedaries, and related equipment purchased for personal transport (07.1.4.0)

  • Inflatable boats, rafts, and swimming pools for children and the beach (09.2.2.2)

09.1.2.1 Camper Vans, Caravans, and Trailers (D)

Includes:

  • Camper vans, caravans, and trailers

09.1.2.2 Airplanes, Microlight Aircraft, Gliders, Hang Gliders, and Hot-Air Balloons (D)

Includes:

  • Airplanes, microlight aircraft, gliders, hang gliders, and hot-air balloons

09.1.2.3 Boats, Yachts, Outboard Motors, and Other Water Sports Equipment (D)

Includes:

  • Boats, yachts, outboard motors, sails, jet sky, rigging, and superstructures

  • Vessels for recreation, sailboats, sailboards, and water sport boards

  • Canoes, kayaks, and windsurfing boards

  • Sea-diving equipment

Excludes:

  • Inflatable boats, rafts, and swimming pools for children (09.2.2.2)

09.1.2.4 Horses, Ponies, Camel and Dromedaries, and Accessories (D)

Includes:

  • Horses and ponies, horse- or pony-drawn vehicles, camels and dromedaries, purchased for recreational purposes and related equipment (harnesses, bridles, reins, saddles, and so on)

Excludes:

  • Horses and ponies, horse- or pony-drawn vehicles, camels and dromedaries, and related equipment purchased for personal transport (07.1.4.0)

09.1.2.9 Other Major Durables for Recreation (D)

Includes:

  • Golf carts

  • Snowmobiles

  • Large steel-frame swimming pools for the garden

  • Billiard tables, ping-pong tables, pinball machines, gaming machines, and so on

  • Bicycles with four wheels

  • Other major durables for recreation n.e.c.

Excludes:

  • Inflatable boats, rafts, and swimming pools for children and the beach (09.2.2.2)

09.2 Other Recreational Goods

09.2.1 Games, Toys, and Hobbies (SD)

Includes:

  • Card games, board games, parlor games, chess sets, and the like

  • Video game software, video game computers that plug into a television set, video game cassettes, video game CD-ROMs, and video game downloads

  • Game apps

  • Gamepads, joysticks, racing wheels, and other accessories for video gaming

  • Electronic games

  • Toys of all kinds including dolls, soft toys, toy cars and trains, toy bicycles and tricycles, toy construction sets, puzzles, modeling clay, electronic games, masks, disguises, jokes, novelties, fireworks and rockets, festoons, and holiday decorations

  • Stamp-collecting requisites (used or canceled postage stamps, stamp albums, and so on), other items for collections (coins, medals, minerals, zoological and botanical specimens, and so on), and other tools and articles n.e.c. for hobbies

Includes also:

  • Separate purchases of materials made by households, with the intention of undertaking the maintenance and repair themselves

Excludes:

  • Collectors’ items falling into the category of works of art or antiques (05.1.1.1 or capital formation if acquired primarily as stores of value)

  • Video game subscriptions and rentals (09.4.3.1)

  • Children’s scrapbooks (09.7.1.9)

09.2.1.1 Video Game Computers, Game Consoles, Game Apps, and Software (SD)

Includes:

  • Video game computers

  • Video game consoles

  • Gamepads, joysticks, racing wheels, and other accessories for video gaming

  • Electronic games

  • Video game software (for game consoles, computers, tablets, smartphones, download, and on any media, including CD-ROMs, cartridges, DVDs, Blu-ray discs, flash drives, and so on)

  • Game apps

Excludes:

  • Video game subscriptions and rentals (09.4.3.1)

09.2.1.2 Other Games, Toys, and Hobbies (SD)

Includes:

  • Traditional games, for example, card games, parlor games, board games, chess sets

  • Dolls

  • Toy cars, including toy trains, toy bicycles, and tricycles

  • Soft toys, teddy bears, and so on

  • Toy construction sets

  • Puzzles

  • Modeling clay

  • Masks

  • Disguises

  • Jokes

  • Models/replicas of planes, boats, trains, and so on

  • Hobby-stamp-collecting requisites (used or canceled postage stamps, stamp albums, and so on)

  • Other items for collections (coins, medals, minerals, zoological and botanical specimens, and so on) and other tools and articles n.e.c. for hobby purposes

Excludes:

  • Collectors’ items falling into the category of works of art or antiques (05.1.1.1 or capital formation if acquired primarily as stores of value)

  • Children’s scrapbooks (09.7.1.9)

09.2.1.3 Celebration Articles (ND)

Includes:

  • Fireworks and rockets

  • Festoons

  • Christmas trees

  • Holiday decorations (for Christmas, Easter, Hanukkah, Eid, Diwali, and similar)

09.2.2 Equipment for Sport, Camping, and Open-Air Recreation (SD)

Includes:

  • Gymnastic, physical education, and sport equipment, such as balls, shuttlecocks, nets, rackets, bats, skis, golf clubs, foils, sabers, poles, weights, discuses, javelins, dumbbells, chest expanders, and other body-building equipment

  • Parachutes, paragliders, and other skydiving equipment

  • Firearms and ammunition for hunting, sport, and personal protection

  • Fishing rods and other equipment for fishing

  • Equipment for beach and open-air games, such as bowls, croquet, fying disks, volleyball, and inflatable boats, rafts, and swimming pools

  • Inflatable boats, rafts, and swimming pools for children

  • Skateboards, kickboards, smart balance wheels, and hoverboards

  • Camping equipment, such as tents and accessories, sleeping bags, backpacks, air mattresses and inflating pumps, camping stoves, and barbecues

Includes also:

  • Game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on); protective headgear for sports; other protective gear for sports, such as life jackets, boxing gloves, body padding, shin guards, goggles, belts, supports, and so on

  • Separate purchases of materials made by households with the intention of undertaking the maintenance or repair themselves

  • GPS (satellite positioning) equipment for boats or hiking

Excludes:

  • Garden and camping furniture (05.1.1.2)

  • Crash helmets for motorcycles and bicycles (07.2.1.3)

  • Repair of equipment for sport (09.4.4.0)

09.2.2.1 Equipment for Sport (SD)

Includes:

  • Gymnastic, physical education, and sport equipment, such as balls, shuttlecocks, nets, rackets, bats, skis, golf clubs, discuses, and javelins

  • Parachutes, paragliders, and other skydiving equipment

  • Firearms and ammunition for hunting, sport, and personal protection

  • Fishing rods and other equipment for fishing

  • Skateboards, kickboards, smart balance wheels, and hoverboards

Includes also:

  • Game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on)

  • Game-specific sportswear (ski suits and so on)

  • Protective headgear for sports

  • Other protective gear for sports, such as life jackets, boxing gloves, sport gloves, body padding, shin guards, pads, goggles, belts, supports, and helmets, for example, for skateboarding, inline skating, and ice hockey

Excludes:

  • Repair of equipment for sport (09.4.4.0)

09.2.2.2 Equipment for Camping and Open-Air Recreation (SD)

Includes:

  • Equipment for beach and open-air games, such as bowls, croquet, flying disks, volleyball and inflatable boats, rafts, and swimming pools

  • Tents, sleeping bags, backpacks, air mattresses and inflating pumps, camping stoves, barbecues, and other accessories related to camping

Excludes:

  • Camping furniture (05.1.1.2)

  • Repair of equipment for camping and open-air recreation (09.4.4.0)

09.3 Garden Products and Pets

09.3.1 Garden Products, Plants, and Flowers (ND)

Includes:

  • Soil, peat and fertilizers, pesticides, and composts

  • Turf for lawns, specially treated soils for ornamental gardens, horticultural preparations

  • Pots and pot holders

  • Decorations and ornaments for gardens (which are not plants)

  • Indoor plants, including natural or artificial

  • Outdoor plants

  • Seeds, bulbs, and tubers for planting

  • Shrubs

  • Indoor flowers (natural or artificial in vase or not)

  • Outdoor flowers

  • Flower seeds and bulbs

  • Natural or artificial flowers and wreaths for decoration of burial places

  • Cut flowers

  • Delivery charges for flowers and plants if not separately priced

Excludes:

  • Gardening services (04.4.4.9, 05.6.2.1)

  • Gardening equipment (05.5.1.0)

  • Gardening tools (05.5.2.1)

  • Insecticides and pesticides for household use; gardening gloves (05.6.1.9)

  • Delivery charges for flowers and plants if separately priced (07.4.9.2)

  • Christmas trees (09.2.1.3)

09.3.1.1 Garden Products (ND)

Includes:

  • Soil, peat and fertilizers, pesticides, and composts

  • Turf for lawns, specially treated soils for ornamental gardens, horticultural preparations

  • Pots and pot holders

  • Decorations and ornaments for gardens (which are not plants)

Excludes:

  • Gardening services (04.4.4.9, 05.6.2.1)

  • Gardening equipment (05.5.1.0)

  • Gardening tools (05.5.2.1)

  • Insecticides and pesticides for household use; gardening gloves (05.6.1.9)

09.3.1.2 Plants, Seeds, and Flowers (ND)

Includes:

  • Indoor plants, including natural or artificial

  • Outdoor plants

  • Seeds, bulbs, and tubers for planting

  • Shrubs

  • Indoor flowers (natural or artificial in vase or not)

  • Outdoor flowers

  • Flower seeds and bulbs

  • Natural or artificial flowers and wreaths for decoration of burial places

  • Cut flowers

Excludes:

  • Soil, peat, and fertilizers (09.3.1.1)

  • Christmas trees (09.2.1.3)

09.3.2 Pets and Related Products (ND)

Includes:

  • Pets, pet foods, veterinary and grooming products for pets, collars, leashes, kennels, birdcages, fish tanks, cat litter, and so on

Includes also:

  • Feed and veterinary products for animals used for transportation, own consumption or recreation

Excludes:

  • Horses and ponies, camels, and dromedaries, for transport (07.1.4.0)

  • Horses and ponies, camels, and dromedaries, for recreation (09.1.2.4)

  • Veterinary and other services for pets (09.4.5.0)

09.3.2.1 Purchase of Pets (ND)

Includes:

  • Purchase of pets

Excludes:

  • Horses and ponies, camels, and dromedaries, for transport (07.1.4.0)

  • Horses and ponies, camels, and dromedaries, for recreation (09.1.2.4)

09.3.2.2 Products for Pets and Other Household Animals (ND)

Includes:

  • Pet foods, veterinary and grooming products for pets, collars, leashes, kennels, birdcages, fish tanks, cat litter, and so on

Includes also:

  • Feed and veterinary products for animals used for transportation, own consumption or recreation

Excludes:

  • Veterinary and other services for pets and other household animals (09.4.5.0)

09.4 Recreational Services

09.4.1 Hire and Repair of Photographic and Cinematographic Equipment and Optical Instruments (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Hire of photographic and cinematographic equipment and optical instruments

  • Repair of photographic and cinematographic equipment and optical instruments

Excludes:

  • Separate purchases of materials made by households with the intention of undertaking the repair themselves (09.1.1.2)

09.4.1.0 Hire and Repair of Photographic and Cinematographic Equipment and Optical Instruments (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Hire of photographic and cinematographic equipment and optical instruments

  • Repair of photographic and cinematographic equipment and optical instruments

Excludes:

  • Separate purchases of materials made by households with the intention of undertaking the repair themselves (09.1.1.2)

09.4.2 Hire, Maintenance, and Repair of Major Durables for Recreation (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Maintenance and repair of major durables for recreation as described in 09.1.2

  • Laying up for winter of boats, yachts, camper vans, caravans, and so on; hangar services for private planes; and marina services for boats

  • Hire of major durables for recreation as described in 09.1.2.2, 09.1.2.3, and 09.1.2.9

Excludes:

  • Fuel for recreational vehicles (07.2.2.1, 07.2.2.2, 07.2.2.3)

  • Separate purchases of materials made by households with the intention of undertaking the maintenance or repair themselves (09.1.2.1)

09.4.2.1 Hire, Maintenance, and Repair of Camper Vans and Caravans (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Hire of camper vans and caravans

  • Maintenance and repair of camper vans and caravans

  • Laying up for winter of camper vans and caravans

Excludes:

  • Fuel for recreational vehicles (07.2.2.1, 07.2.2.2, 07.2.2.3)

  • Separate purchases of materials made by households with the intention of undertaking the maintenance or repair themselves (09.1.2.1)

09.4.2.2 Hire, Maintenance, and Repair of Other Major Durables for Recreation (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Hire of major durables for recreation as described in 09.1.2.2, 09.1.2.3, and 09.1.2.9

  • Laying up for winter of boats, yachts, and so on; hangar services for private planes; and marina services for boats

Excludes:

  • Fuel for recreational vehicles (07.2.2.1, 07.2.2.2, 07.2.2.3)

  • Separate purchases of materials made by households with the intention of undertaking the maintenance or repair themselves (09.1.2.1)

09.4.3 Hire and Repair of Games, Toys, and Hobbies (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Rental and subscriptions of video game consoles and apps or software

  • Repair of video game consoles, toys, and hobby articles

09.4.3.1 Rental of Game Software and Subscription to Online Games (S)

Includes:

  • Rental of game software (games on CDs, DVDs, Blu-ray discs, and so on)

  • Subscription to play online games (or streaming)

09.4.3.2 Rental and Repair of Games, Toys, and Hobbies (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Hire and repair of video game consoles and other equipment to play games

  • Hire and repair of toys and hobby articles

  • Hire of toys and games

09.4.4 Hire and Repair of Equipment for Sport, Camping, and Open-Air Recreation (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Hire and repair of equipment for sport, camping, and open-air recreation

  • Hire of beach umbrellas and deckchairs

09.4.4.0 Hire and Repair of Equipment for Sport, Camping, and Open-Air Recreation (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Hire and repair of equipment for sport, camping, and open-air recreation

  • Hire of beach umbrellas and deckchairs

09.4.5 Veterinary and Other Services for Pets (S)

Includes:

  • Veterinary and other services for pets, such as grooming, boarding, tattooing, and training

  • Pet boarding services or pet day care services

Includes also:

  • Veterinary and hosting services for animals used for transportation

Excludes:

  • Products for pets (09.3.2.2)

09.4.5.0 Veterinary and Other Services for Pets (S)

Includes:

  • Veterinary and other services for pets, such as grooming, tattooing, and training

  • Pet boarding services or pet day care services

Includes also:

  • Veterinary and hosting services for animals used for transportation

Excludes:

  • Products for pets (09.3.2.2)

09.4.6 Recreational and Sporting Services (S)

Includes:

Services provided by:

  • Sports stadiums, horse-racing courses, motor-racing circuits, velodromes, and so on

  • Skating rinks, swimming pools, golf courses, gymnasia, fitness centers, tennis courts, squash courts, and bowling alleys

  • Fairgrounds and amusement parks

  • Roundabouts, seesaws, and other playground facilities for children

  • Pinball machines and other games for adults other than games of chance

  • Arcade games

  • Ski slopes, ski lifts, and the like

  • Out-of-school individual or group lessons in bridge, chess, aerobics, skating, skiing, swimming, or other pastimes

  • Membership fees for sports clubs and fitness centers

  • Services of mountain guides, tour guides, and so on

  • Navigational aid services for boating

  • Water parks

  • Arcade games

  • Services of mountain guides, tour guides, and so on

  • Entrance fees for dancing establishments, nightclubs

  • Fees for taking part in sports competitions

  • Fees for sports title and category certificates

Includes also:

  • Hire of game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on)

  • Paid fishing

  • Membership fees of fishermen’s and hunters’ clubs

Excludes:

  • Cable car and chairlift transport not at ski resorts or holiday centers (07.3.6.0)

09.4.6.1 Recreational and Leisure Services (S)

Includes:

Services provided by:

  • Fairgrounds and amusement parks

  • Roundabouts, seesaws, and other playground facilities for children

  • Out-of-school individual or group lessons in bridge, chess, sewing, cooking, and so on

  • Pin-ball machines and other games for adults other than games of chance

  • Water parks

  • Arcade games

  • Services of mountain guides, tour guides, and so on

  • Entrance fees for dancing establishments, nightclubs

09.4.6.2 Sporting Services—Practice (S)

Includes:

  • Skating rinks, swimming pools, golf courses, gymnasia, fitness centers, tennis courts, squash courts, and bowling alleys

  • Ski slopes, ski lifts, and the like

  • Cable car and chairlift transport at ski resorts and holiday centers

  • Out-of-school individual or group lessons in aerobics, skating, skiing, swimming, or other sports

  • Memberships fees for sports clubs and fitness centers

  • Navigational aid services for boating

  • Fees for taking part in sports competitions

  • Fees for sports title and category certificates

Includes also:

  • Hire of game-specific footwear (ski boots, football boots, golfing shoes, and other such footwear fitted with ice skates, rollers, spikes, studs, and so on)

  • Hunting licenses

  • Paid fishing

  • Membership fees of fishermen’s and hunters’ clubs

Excludes:

  • Cable car and chairlift transport not at ski resorts or holiday centers (07.3.6.0)

09.4.6.3 Sporting Services—Attendance (S)

Includes:

  • Admissions (tickets) to attend live sporting events like football games, hockey games, ice skating competitions, ski competitions, soccer games, tennis matches, horse-racing courses, motor-racing circuits, velodromes, and so on

09.4.7 Games of Chance (S)

Includes:

  • Service charges for lotteries, bookmakers, totalizators, casinos, and other gambling establishments, gaming machines, bingo halls, scratch cards, sweepstakes, and so on

  • Online games of chance

09.4.7.0 Games of Chance (S)

Includes:

  • Service charges for lotteries, bookmakers, totalizators, casinos, and other gambling establishments, gaming machines, bingo halls, scratch cards, sweepstakes, and so on

  • Online games of chance

09.5 Cultural Goods

09.5.1 Musical Instruments (D)

Includes:

  • Musical instruments of all sizes, including electronic musical instruments, such as pianos, organs, violins, guitars, drums, trumpets, clarinets, flutes, recorders, harmonicas, and so on

Includes also:

  • Spare parts of musical instruments

Excludes:

  • Toy instruments (09.2.1.2)

09.5.1.0 Musical Instruments (D)

Includes:

  • Musical instruments of all sizes, including electronic musical instruments, such as pianos, organs, violins, guitars, drums, trumpets, clarinets, flutes, recorders, harmonicas, and so on

Includes also:

  • Spare parts of musical instruments

Excludes:

  • Toy instruments (09.2.1.2)

09.5.2 Audiovisual Media (SD)

Includes:

  • Recorded tapes, CD-ROMs, DVDs, Blu-ray discs, gramophone records, and flash drives, for reproduction of sound and picture material

  • Downloads of music and films

Excludes:

  • Software (08.2.0.0)

  • Video games and game apps and software (09.2.1.1)

  • Recorded tapes and CDs, DVDs, Blu-ray, flash drives of books, novels, plays, poetry, dictionaries, encyclopedias, and so on (09.7.1)

09.5.2.0 Audiovisual Media (SD)

Includes:

  • Recorded tapes, CD-ROMs, DVDs, Blu-ray discs, gramophone records, and flash drives, for reproduction of sound and picture material

  • Downloads of music and films

Excludes:

  • Software (08.2.0.0)

  • Video games and game apps and software (09.2.1.1)

  • Recorded tapes and CDs, DVDs, Blu-ray discs, flash drives of books, novels, plays, poetry, dictionaries, encyclopedias, and so on (09.7.1)

09.6 Cultural Services

09.6.1 Cinemas, Theatres, and Concerts (S)

Includes:

  • Cinemas

  • Theatres, opera houses

  • Concert and music venues

  • Circuses, sound and light shows, and other

Includes also:

  • Services of musicians, clowns, performers for private entertainments

  • Music, dancing, and artistic performance

  • Art and music festivals

09.6.1.0 Cinemas, Theatres, and Concerts (S)

Includes:

  • Cinemas

  • Theatres, opera houses

  • Concert and music venues

  • Circuses, sound and light shows, and other

Includes also:

  • Services of musicians, clowns, performers for private entertainments

  • Music, dancing, and artistic performance

  • Art and music festivals

09.6.2 Museums, Libraries, and Cultural Sites (S)

Includes:

  • Museums, art galleries, and exhibitions, including historical monuments and archeological sites

  • Libraries

  • Historic monuments, national parks, zoological and botanical gardens, and aquaria

09.6.2.0 Museums, Libraries, and Cultural Sites (S)

Includes:

  • Museums, art galleries, exhibitions, including historical monuments and archeological sites

  • Libraries

  • Historic monuments, national parks, zoological and botanical gardens, and aquaria

09.6.3 Photographic Services (S)

Includes:

  • Services of photographers, such as film developing, print processing, enlarging, portrait photography, event photography and video (for example, for weddings), and so on

Includes also:

  • Photographic services provided by nonspecialized shops (for example, supermarkets, consumer electronic stores, and so on) and purchased by internet

09.6.3.0 Photographic Services (S)

Includes:

  • Services of photographers, such as film developing, print processing, enlarging, portrait photography, event photography and video (for example, for weddings), and so on

Includes also:

  • Photographic services provided by nonspecialized shops (for example, supermarkets, consumer electronic stores, and so on) and purchased by internet

09.6.9 Other Cultural Services (S)

Includes:

  • Services of rental and repair of musical instruments

  • Binding services

  • Photography, music, dancing, and artistic classes (in classroom or via e-learning)

Includes also:

  • Rental of premises for rehearsals of amateur music groups, weddings, and other celebrations

Excludes:

  • Formal education of music, dancing, and art (Division 10 according to the level)

09.6.9.0 Other Cultural Services (S)

Includes:

  • Services of rental and repair of musical instruments

  • Binding services

  • Photography, music, dancing, and artistic classes (in classroom or via e-learning)

Includes also:

  • Rental of premises for rehearsals of amateur music groups, weddings, and other celebrations

Excludes:

  • Formal education of music, dancing, and art (Division 10 according to the level)

09.7 Newspapers, Books, and Stationery

09.7.1 Books (SD)

Includes:

  • Books educational or not, including atlases, dictionaries, encyclopedias, guidebooks, and musical scores

  • Recorded tapes and CDs, DVDs, Blu-ray discs, flash drives of educational books novels, plays, poetry, and so on

  • All electronic forms of books (e-books and audio books)

  • Removable media containing books, dictionaries, encyclopedias, foreign language trainers, multimedia presentations, and so on in the form of software

  • Scrapbooks and albums for children

Includes also:

  • All electronic forms of educational books (e-books and audio books)

Excludes:

  • Stamp albums (09.2.1.2)

09.7.1.1 Educational and Text Books (SD)

Includes:

  • Formal education text books (school/academic manuals, and so on)

  • Recorded tapes and CDs, DVDs, Blu-ray discs, flash drives of educational books

  • Download of educational books

  • Removable media containing books, dictionaries, encyclopedias, foreign language trainers, in the form of software

Includes also:

  • All electronic forms of educational books (e-books and audio books)

09.7.1.9 Other Books (SD)

Includes:

  • Fiction and nonfiction books

  • Children’s books, scrapbooks and albums for children, and coloring books for children

  • Art books

  • Travel guides

  • Recorded tapes and CDs, DVDs, Blu-ray discs, flash drives of books, novels, plays, poetry, and so on

  • Download of noneducational books

Includes also:

  • All electronic forms of books (e-books and audio books); scrapbooks and albums for children

Excludes:

  • Stamp albums (09.2.1.2)

09.7.2 Newspapers and Periodicals (ND)

Includes:

  • Newspapers, magazines, and other periodicals

Includes also:

  • All electronic forms of newspapers and periodicals

09.7.2.1 Newspapers (ND)

Includes:

  • Newspaper bought in kiosks

  • Subscription for newspapers (home delivery)

  • Internet subscription for newspapers

Includes also:

  • All electronic forms of newspapers

09.7.2.2 Magazines and Periodicals (ND)

Includes:

  • Lifestyle magazines

  • Children magazines

  • Hobbies, leisure magazines

  • Business, political magazines

  • TV magazines

  • Subscription for magazines and periodicals (home delivery)

  • Internet subscription for magazines and periodicals

Includes also:

  • All electronic forms of magazines and periodicals

09.7.3 Miscellaneous Printed Matter (ND)

Includes:

  • Catalogs and advertising material

  • Posters, plain or picture postcards, calendars

  • Greeting cards and visiting cards, announcement, and message cards

  • Maps and globes

Includes also:

  • GPS maps bought separately

Excludes:

  • Prefranked postcards and aerogrammes (07.4.1.1)

  • Stamp albums (09.2.1.2)

09.7.3.0 Miscellaneous Printed Matter (ND)

Includes:

  • Catalogs and advertising material

  • Posters, plain or picture postcards, calendars

  • Greeting cards and visiting cards, announcement, and message cards

  • Maps and globes

Includes also:

  • GPS maps bought separately

Excludes:

  • Prefranked postcards and aerogrammes (07.4.1.1)

  • Stamp albums (09.2.1.2)

09.7.4 Stationery and Drawing Materials (ND)

Includes:

  • Writing pads, envelopes, account books, diaries, and so on

  • Drawing paper

  • Educational materials, such as exercise books

  • Wrapping paper

  • Pens, pencils, fountain pens, ballpoint pens, felt-tip pens, inks, erasers, pencil sharpeners, and so on

  • Stencils, carbon paper, inking pads, correcting fluids, and so on

  • Paper punches, paper cutters, paper scissors, office glues and adhesives, staplers and staples, paper clips, drawing pins, and so on

  • Drawing and painting materials, such as canvas, card, paints, crayons, pastels, and brushes

Includes also:

  • Slide rules, geometry instruments, slates, chalks, and pencil boxes

Excludes:

  • Pocket calculators (08.1.3.2)

09.7.4.0 Stationery and Drawing Materials (ND)

Includes:

  • Writing pads, envelopes, account books, diaries, and so on

  • Drawing paper

  • Educational materials, such as exercise books

  • Wrapping paper

  • Pens, pencils, fountain pens, ballpoint pens, felt-tip pens, inks, erasers, pencil sharpeners, and so on

  • Stencils, carbon paper, inking pads, correcting fluids, and so on

  • Paper punches, paper cutters, paper scissors, office glues and adhesives, staplers and staples, paper clips, drawing pins, and so on

  • Drawing and painting materials, such as canvas, card, paints, crayons, pastels, and brushes

Includes also:

  • Slide rules, geometry instruments, slates, chalks, and pencil boxes

Excludes:

  • Pocket calculators (08.1.3.2)

09.8 Package Holidays

09.8.0 Package Holidays (S)

Includes:

  • All-inclusive holidays or tours which provide for travel, food, accommodation, guides, and so on

  • Excursion tours including transport and guide

09.8.0.0 Package Holidays (S)

Includes:

  • All-inclusive holidays or tours which provide for travel, food, accommodation, guides, and so on

  • Excursion tours including transport and guide

10 Education Services

Division 10 covers educational services only. The focus of groups 10.1–10.4 is on formal education (that leads to certificate or diploma). It includes education by radio or television broadcasting as well as e-learning and correspondence courses. It includes admission and registration fees as well as tuition fees.

It also includes other education-related fees like camps/ field trips, course fees, diploma fees, examination fees, graduation fees, laboratory fees, physical education fee, and so on.

The breakdown of educational services is based upon the level categories of the 2011 revision of the International Standard Classification of Education (ISCED 2011) of the United Nations Educational, Scientific and Cultural Organization.

This division does not include expenditures on other education-related goods and services, such as:

  • School uniforms (03.1.2.3)

  • Education support services, such as health care services (06)

  • Transport services except in the case of excursions which are part of the normal school program (07.3.2.3)

  • Textbooks and academic journals (09.7.1.1)

  • Stationery (09.7.4.0)

  • Catering services (11.1.2.1)

  • Accommodation services (11.2.0.3)

10.1 Early Childhood and Primary Education

10.1.0 Early Childhood and Primary Education (S)

Includes:

  • Levels 0 and 1 of ISCED 2011 Early childhood and primary education

  • Literacy programs for students too old for primary school

  • Education services for children with special educational needs

Includes also:

  • Excursions which are part of the normal school program (travel and accommodation costs)

Excludes:

  • Childcare services without educational program (13.3.0.1)

10.1.0.1 Early Childhood Education (S)

Includes:

  • ISCED 2011 level 0: early childhood education is designed primarily to support children’s early cognitive, physical, social, and emotional development and introduce very young children to organized instruction outside

of the family context. Programs are designed for children below the entry age to primary education and are typically center- or school-based. This education may also be provided in hospitals or in special schools or training centers; special education services for children with special educational needs.

  • Special education services for children with special educational needs.

Includes also:

  • Excursions which are part of the normal school program (travel and accommodation costs)

Excludes:

  • Childcare services without educational program (13.3.0.1)

10.1.0.2 Primary Education (S)

Includes:

  • ISCED 2011 level 1: primary education usually begins at age five, six, or seven and generally lasts for four to seven years. Programs are normally designed to provide students with fundamental skills in reading, writing, and mathematics and establish a solid foundation for learning and understanding core areas of knowledge and personal and social development. Organized instruction for children with special needs should also be included and literacy or basic skills programs within or outside the school system which are similar in content to program in primary education.

  • Literacy programs for students too old for primary school.

  • Excursions which are part of the normal school program (travel and accommodation costs).

  • Education services for children with special educational needs.

10.2 Secondary Education

10.2.0 Secondary Education (S)

Includes:

  • Levels 2 and 3 of ISCED 2011: lower-secondary and upper-secondary education. Secondary education is designed to lay the foundation for lifelong learning and human development and to provide the skills and knowledge needed either for further studies at postsecondary and tertiary levels or for entry to the labor market, or both.

Programs are increasingly subject-oriented and specialized. Different study options or streams are offered, including vocational education and training. Organized instruction for young people with special needs is also covered:

  • Secondary education for adults and young people including second chance or reintegration; programs

  • Out-of-school secondary education for adults and young people

  • Education services for adolescents with special educational needs

Includes also:

  • Excursions or student exchanges which are part of the normal school program (travel and accommodation costs)

10.2.0.0 Secondary Education (S)

Includes:

  • Levels 2 and 3 of ISCED 2011: lower-secondary and upper-secondary education. Secondary education is designed to lay the foundation for lifelong learning and human development and to provide the skills and knowledge needed either for further studies at postsecondary and tertiary levels or for entry to the labor market, or both. Programs are increasingly subject-oriented and specialized. Different study options or streams are offered, including vocational education and training. Organized instruction for young people with special needs is also covered.

  • Secondary education for adults and young people including second chance or reintegration; programs.

  • Out-of-school secondary education for adults and young people.

  • Education services for adolescents with special educational needs.

Includes also:

  • Excursions or student exchanges which are part of the normal school program (travel and accommodation costs)

10.3 Postsecondary Nontertiary Education

10.3.0 Postsecondary Nontertiary Education (S)

Includes:

  • Level 4 of ISCED 2011: postsecondary nontertiary education provides learning experiences building on secondary education, preparing for labor market entry as well as tertiary education. It aims at the individual acquisition of knowledge, skills, and competencies lower than the level of complexity characteristic of tertiary education. Postsecondary nontertiary education is typically designed to provide individuals who completed upper-secondary education without qualifications required for progression to tertiary education and for individuals seeking specific types of employment when their secondary qualification does not grant such access. For example, graduates from general secondary programs may choose to complete a nontertiary vocational qualification; or graduates from vocational secondary programs may choose to increase their level of qualifications or specialize further. Usually, programs at this level are designed for direct labor market entry. General programs designed to give access to or improved access to tertiary education can also exist.

  • Out-of-school postsecondary nontertiary education for adults and young people.

  • Education services for young people and adults with special educational needs.

Includes also:

  • Excursions or student exchanges which are part of the normal school program (travel and accommodation costs)

10.3.0.0 Postsecondary Nontertiary Education (S)

Includes:

  • Level 4 of ISCED 2011: postsecondary nontertiary education provides learning experiences building on secondary

education, preparing for labor market entry as well as tertiary education. It aims at the individual acquisition of knowledge, skills, and competencies lower than the level of complexity characteristic of tertiary education. Postsecondary nontertiary education is typically designed to provide individuals who completed upper-secondary education without qualifications required for progression to tertiary education and for individuals seeking specific types of employment when their secondary qualification does not grant such access. For example, graduates from general secondary programs may choose to complete a nontertiary vocational qualification; or graduates from vocational secondary programs may choose to increase their level of qualifications or specialize further. Usually, programs at this level are designed for direct labor market entry. General programs designed to give access to or improved access to tertiary education can also exist.

  • Out-of-school postsecondary nontertiary education for adults and young people.

  • Education services for young people and adults with special educational needs.

Includes also:

  • Excursions or student exchanges which are part of the normal school program (travel and accommodation costs)

10.4 Tertiary Education

10.4.0 Tertiary Education (S)

Includes:

  • Levels 5, 6, 7, and 8 of ISCED 2011: tertiary education builds on secondary education and provides learning activities in specialized fields of education. It aims at a high level of complexity and specialization. It includes both academic education and advanced vocational or professional education. At the highest levels, programs lead to an advanced research qualification based on advanced study and original research.

Includes also:

  • Excursions or student exchanges which are part of the normal school program (travel and accommodation costs)

  • University admission tests

  • E-learning courses

10.4.0.0 Tertiary Education (S)

Includes:

  • Levels 5, 6, 7, and 8 of ISCED 2011: tertiary education builds on secondary education and provides learning activities in specialized fields of education. It aims at a high level of complexity and specialization. It includes both academic education and advanced vocational or professional education. At the highest levels, programs lead to an advanced research qualification based on advanced study and original research.

Includes also:

  • Excursions or student exchanges which are part of the normal school program (travel and accommodation costs)

  • University admission tests

  • E-learning courses

10.5 Education Not Defined by Level

10.5.0 Education Not Defined by Level (S)

Includes:

  • Independent tutors (private lessons), tutor centers, homework help centers, and the like

  • Short educational courses, generally for adults, which do not require any special prior instruction, in particular cultural development or some types of vocational training

  • Language immersion courses and international travel for learning languages

  • Languages courses in classroom or online

  • Language proficiency tests

  • Courses in the use of computers and specific software

  • Exam preparation courses

  • Online tutoring

Excludes:

  • Driving lessons (07.2.4.3)

  • Recreational training courses, such as sport or bridge lessons given by independent teachers (09.4.6.1)

  • Removable media containing foreign language trainers (09.7.1.1)

10.5.0.1 Tutoring (S)

Includes:

  • Independent tutors (private lessons to support formal education), tutor centers, homework help centers, and the like

  • Exam preparation courses

  • Online tutoring

10.5.0.9 Other Education Not Defined by Level (S)

Includes:

  • Educational programs, generally for adults, which do not require any special prior instruction, in particular vocational training or cultural development

  • Language immersion courses and international travels with educational purposes (for example, languages)

  • Languages courses in classroom, online, in form of software or audio tapes

  • Language proficiency tests

  • Information technology courses (for example, learning how to use a specific software)

Excludes:

  • Driving lessons (07.2.4.3)

  • Recreational training courses, such as sport or bridge lessons given by independent teachers (09.4.6.1)

  • Removable media containing foreign language trainers (09.7.1.1)

11 Restaurants and Accommodation Services

Division 11 covers food and beverage serving services provided by restaurants, cafés, and similar facilities, either with full, limited, or self-service, or by canteens, cafeterias, or reflectories at work or school, and other educational establishment’s premises. The distinction between full service and limited service relates to the range of the food and beverage serving services: a service by waiters to the individual customer seated at tables will be qualified to be a full service.

Accommodation in this division includes services for visitors and other travelers away from their principal or secondary residence. When not separately invoiced, it also includes food and beverage services and other serving services, such as housekeeping, parking, laundry, swimming pools and exercise rooms, recreational facilities, and conference and convention facilities.

Excludes:

  • Permanent principal or secondary residence accommodation (Division 04)

11.1 Food and Beverage Serving Services

11.1.1 Restaurants, Cafés, and the Like (S)

Food and beverages services provided by restaurants, cafés, and similar eating facilities either providing full, limited, or self-service. Includes also:

  • Tobacco that is consumed with a shisha or hookah pipes in restaurants, cafés, or shisha lounges

  • Narcotics purchased in coffee shops, if service charge is applied

  • Tips

Excludes:

  • Food products and beverages dispensed by automatic vending machines not as a delivery service provided restaurants, cafés, buffets, bars, tearooms, and similar facilities (01.1.9.1)

  • Tobacco purchases (02.3.0)

  • Food and beverage services on public transport, if not separately invoiced (07.3)

  • Food and beverage provided by supermarkets and markets and consumed at their premises (related products in Division 01)

  • Food and beverages delivery services, if separately invoiced (07.4.9.2)

  • Dancing establishments and nightclubs entrance fees (09.4.6.1)

  • Food and beverage services in places providing recreational, cultural, sporting or entertainment services, if not separately invoiced (09.4.6, 09.6.1.0, 09.6.2.0, 09.6.9.0)

  • Food and beverage services provided in package holidays, if not separately invoiced (09.8.0.0)

  • Food and beverage services provided by hotels or other lodging places, if not separately invoiced from accommodation (11.2)

11.1.1.1 Restaurants, Cafés, and the Like—With Full Service (S)

Food and beverages services provided by restaurants, cafés, and similar eating facilities providing full service consisting of waiter service to individual customers seated at tables, with or without entertainment.

Includes:

  • Food and beverages provided by full-service facilities mainly serving drinks: cafés, buffets, bars, tearooms, and similar

  • Food and beverages provided by full-service restaurants, cafés, and the like and consumed off their premises; food and beverages provided by full-service restaurants, cafés, and the like and home-delivered

  • Food and beverage full services in hotels or other accommodation places, if separately invoiced from accommodation

  • Food and beverage full services in places providing recreational, cultural, sporting, or entertainment services (theatres, cinemas, sports stadiums, swimming pools, sports complexes, museums, art galleries, nightclubs, dancing establishments, and similar facilities) if separately invoiced

  • Tobacco that is consumed with a shisha or hookah pipes in restaurants, cafés, or shisha lounges

  • Narcotics purchased in coffee shops, if service charge is applied

  • Tips

Excludes:

  • Tobacco purchases (02.3.0)

  • Food and beverage services on public transport, if not separately invoiced (07.3)

  • Food and beverage provided by supermarkets and markets and consumed at their premises (related products in Division 01)

  • Food and beverages delivery, if separately invoiced (07.4.9.2)

  • Food and beverage services in places providing recreational, cultural, sporting, or entertainment services, if not separately invoiced (09.4.6, 09.6.1.0, 09.6.2.0, 09.6.9.0)

  • Entrance fees for dancing establishments, nightclubs (09.4.6.1)

  • Food and beverage services provided in package holidays, if not separately invoiced (09.8.0.0)

  • Food and beverage services in hotels or other lodging places, if not separately invoiced from accommodation ( 11.2)

11.1.1.2 Restaurants, Cafés, and the Like—With Limited Service (S)

Food and beverages serving services provided by limited and self-service facilities that are without waiter service and with or without seating.

Includes:

  • Food and beverage services provided by self-service restaurants

  • Food and beverages provided by refreshment stands, fish and chip stands, and fast-food outlets without seating and takeaway facilities

  • Food products and beverages prepared on the premises and dispensed through automatic vending machines as a delivery service in a self-service restaurant or similar (for example, automat restaurants)

  • Food and beverage for immediate consumption provided by kiosks, food stalls, street vendors, and the like

Includes also:

  • Ice cream parlors and cake serving places

  • Food and beverages provided by catering contractors whether collected by the customer or delivered to the customer’s home

  • Food and beverage services on public transport (coaches, trains, boats, airplanes, and so on), if separately invoiced

  • Tobacco that is consumed with a shisha or hookah pipes in restaurants, cafés, or shisha lounges

  • Narcotics purchased in coffee shops, if service charge is applied

  • Tips

Excludes:

  • Food products and beverages dispensed by automatic vending machines not as a delivery service provided restaurants, cafés, buffets, bars, tearooms, and similar facilities (01.1.9.1)

  • Tobacco purchases (02.3.0)

  • Food and beverage services on public transport, if not separately invoiced (07.3)

  • Food and beverage provided by supermarkets and markets and consumed at their premises (related products in Division 01)

  • Food and beverages delivery, if separately invoiced (07.4.9.2)

  • Food and beverage services in places providing recreational, cultural, sporting, or entertainment services, if not separately invoiced (09.4.6, 09.6.1.0, 09.6.2.0, 09.6.9.0)

  • Entrance fees for dancing establishments, nightclubs (09.4.6.1)

  • Food and beverage services provided in package holidays, if not separately invoiced (09.8.0.0)

  • Food and beverage services in hotels or other lodging places, if not separately invoiced from accommodation (11.2)

11.1.2 Canteens, Cafeterias, and Reflectories (S)

Food and beverages provided by canteens, cafeterias, or reflectories, that is, restaurants, cafés, and the like at work/office premises, in schools, universities, and other educational establishments, to hospital inpatients, if separately invoiced.

Includes:

  • University reflectories, military messes, and wardrooms

Excludes:

  • Food and beverages provided by schools, university, and other educational establishments, if not separately invoiced (10.1–10.5)

  • Food and beverages provided to hospital inpatients if not separately invoiced (06.3)

11.1.2.1 Canteens, Cafeterias, and Reflectories of Universities, Schools, and Kindergartens (S)

Food and beverages provided by canteens, cafeterias, or reflectories, that is, restaurants, cafés, and the like at in schools, universities, and other educational establishments.

Includes:

  • Kindergarten canteens

  • School canteens

  • University reflectories

Excludes:

  • Food and beverages provided by schools, university, and other educational establishments, if not separately invoiced (10.1–10.5)

11.1.2.9 Other Canteens, Cafeterias, and Reflectories (S)

Food and beverages provided by canteens, cafeterias, or reflectories, that is, restaurants, cafés, and the like at work/office premises, to hospital inpatients, if separately invoiced.

Includes:

  • Military messes and wardrooms

Excludes:

  • Food and beverages provided to hospital inpatients if not separately invoiced (06.3)

11.2 Accommodation Services

11.2.0 Accommodation Services (S)

Accommodation services for visitors and other travelers away from their permanent principal or secondary residence. It includes other services, when not separately invoiced, such as food and beverage services, housekeeping, parking, laundry, swimming pools and exercise rooms, recreational facilities, and conference and convention facilities.

Includes:

  • Resorts, hotels, hotels letting rooms by the hour, motels, inns, and pensions

  • Accommodation services provided by private, holiday homes, guesthouses and boarding houses as secondary residence, and other “bed and breakfast” units

  • Time-share units

  • Holiday villages and holiday centers, camping, and onsite (nonmobile) caravans and boats

  • Youth hostels and mountain refuges

  • Bungalows, chalets, housekeeping cottages, and cabins

  • Student residences, school, and other educational establishments dormitories, when separately invoiced; hostels and other accommodations for workers

  • Railway sleeping cars and other public transport, when separately invoiced

  • Website fees for people to list, find, and rent lodging

  • Travel agency fees for accommodation if priced separately

  • Tips for bellmen, bellhops, hotel porters, and maids

Excludes:

  • Payments of households occupying a room in a hotel or boarding house as their main residence (04.1.1.0)

  • Rentals paid by households for a secondary residence or time-share residence (04.1.2)

  • Telephone calls (08.3.1.0)

  • Package holidays (09.8.0.0)

  • Breakfast, meals, and other food and beverages provided in accommodation and similar establishments, when separately invoiced (11.1.1)

  • Housing in orphanages, homes for disabled or maladjusted persons (13.3.0.2)

11.2.0.1 Hotels, Motels, Inns, and Similar Accommodation Services (S)

Includes:

  • Accommodation services in resorts, hotels, and motels

  • Accommodation services in inns, pensions, and similar establishments

  • Short-term accommodation services provided by private, holiday homes, guesthouses and boarding houses as secondary residence, and other “bed and breakfast” units

  • Time-share units

Includes also:

  • Hotels letting rooms by the hour

Excludes:

  • Payments of households occupying a room in a hotel or boarding house as their main residence (04.1.1.0)

  • Rentals paid by households for a secondary residence or time-share residence (04.1.2)

  • Telephone calls (08.3.1.0)

  • Package holidays (09.8.0.0)

  • Breakfast, meals, and other food and beverages provided in accommodation and similar establishments, when separately invoiced (11.1.1)

11.2.0.2 Holiday Centers, Camping Sites, Youth Hostels, and Similar Accommodation Services (S)

Includes:

  • Holiday villages and holiday centers

  • Camping sites, onsite (nonmobile) caravans and boats, camping grounds, recreational vehicle, and trailer parks

  • Youth hostels and mountain refuges

  • Bungalows, chalets, housekeeping cottages, and cabins

Excludes:

  • Payments of households occupying a room in holiday centers, camping sites, youth hostels, and similar accommodation as their main or secondary residence (04.1.1.0)

  • Telephone calls (08.3.1.0)

  • Breakfast, meals, and other food and beverages provided in accommodation and similar establishments, when separately invoiced (11.1.1)

11.2.0.3 Accommodation Services of Boarding Schools, Universities, and Other Educational Establishments (S)

Includes:

  • Student residences, school, and other educational establishments dormitories, when separately invoiced

Excludes:

  • Housing in orphanages, homes for disabled or maladjusted persons (13.3.0.1, 13.3.0.2)

11.2.0.9 Other Accommodation Services (S)

Includes:

  • Hostels and other accommodations for workers

  • Railway sleeping cars and other public transport, when separately invoiced

  • Website fees for people to list, find, and rent lodging

  • Travel agency fees for accommodation if priced separately

Excludes:

  • Telephone calls (08.3.1.0)

  • Breakfast, meals, and other food and beverages provided in accommodation and similar establishments, when separately invoiced (11.1.1)

  • Housing in orphanages, homes for disabled or maladjusted persons (13.3.0.3)

12 Insurance and Financial Services

Division 12 covers insurance and financial services. Insurance and financial services are provided by financial corporations. These may be paid for explicitly or implicitly. Some transactions in financial assets may also involve both explicit and implicit charges. Implicit charges are not always as evident as the way in which charges are made for most goods and services and are typically calculated using a number of observable transactions. Examples of implicit charges arise from the financial services provided in association with interest charges on loans and deposits, the acquisition and disposal of financial assets and liabilities in financial markets, and insurance and pension programs. The imputed values of expenditure on insurance and financial services are not directly observable from household income and expenditure surveys.

Insurance services are subdivided by type of insurance. Financial services are subdivided by financial intermediation services indirectly measured and by the other forms of actual and indirect charges and remittance fees for financial services. For the definition and the measurement of the insurance and financial services, specific national accounts concepts (2008 SNA) do apply.

12.1 Insurance

Service charges for insurance are classified by type of insurance, namely, life insurance and nonlife insurance (that is, insurance in connection with the dwelling, health, transport, and so on). Service charges for multi-risk insurance covering several risks should be classified on the basis of the cost of the principal risk if it is

not possible to allocate the service charges to the various risks covered.

The basic method for measuring the service charge for nonlife insurance is total premiums earned plus investment income earned from investing the premiums less adjusted claims incurred.

The basic method for measuring the service charge for life insurance is premiums earned plus investment income earned from investing the premiums less benefits due less increases (plus decreases) in life insurance technical reserves.

12.1.1 Life and Accident Insurance (S)

Includes:

  • Service charges for life insurance, annuities, death benefit insurance, education insurance, and so on

12.1.1.0 Life and Accident Insurance (S)

Includes:

  • Service charges for life insurance, annuities, death benefit insurance, education insurance, and so on

Includes also:

  • Service charges for funeral insurance

  • Service charges for accident insurance

12.1.2 Insurance Connected with Health (S)

Includes:

  • Service charges for direct sickness insurance

  • Service charges for social health insurance

  • Service charges for disability insurance

  • Service charges for critical illness insurance

  • Service charges for long-term care insurance

  • Service charges for supplementary health insurance

  • Service charges for supplementary prescription drug insurance

  • Service charges for travel health insurance

Includes also:

  • Service charges for medical transport (for example, ambulance) insurance

12.1.2.0 Insurance Connected with Health (S)

Includes:

  • Service charges for direct sickness insurance

  • Service charges for social health insurance

  • Service charges for disability insurance

  • Service charges for critical illness insurance

  • Service charges for long-term care insurance

  • Service charges for supplementary health insurance

  • Service charges for supplementary prescription drug insurance

  • Service charges for travel health insurance

Includes also:

  • Service charges for medical transport (for example, ambulance) insurance

12.1.3 Insurance Connected with the Dwelling (S)

Includes:

  • Service charges paid by owner-occupiers and by tenants for the kinds of insurance typically taken out by tenants against fire, theft, water damage, and so on

  • Service charges for household contents insurance

Excludes:

  • Service charges paid by owner-occupiers for the kinds of insurance typically taken out by landlords (intermediate consumption)

12.1.3.0 Insurance Connected with the Dwelling (S)

Includes:

  • Service charges paid by owner-occupiers and by tenants for the kinds of insurance typically taken out by tenants against fre, theft, water damage, and so on

  • Service charges paid by owner-occupiers and by tenants for household contents insurance

Excludes:

  • Service charges paid by owner-occupiers for the kinds of insurance typically taken out by landlords (intermediate consumption)

12.1.4 Insurance Connected with Transport (S)

Includes:

  • Service charges for insurance in respect of personal transport equipment

  • Service charges for travel insurance (for change of travel plans, travel cancellation, and so on) and luggage insurance

12.1.4.1 Personal Transport Insurance (S)

Includes:

  • Service charges for car insurance

  • Service charges for insurance in respect of personal transport equipment

  • Service charges for insurances covering civil liability or damage to third parties or their property arising from the operation of personal transport equipment

Includes also:

  • Service charges for insurance in respect of bikes, motorcycles, boats, yachts, sailboats, airplanes, and so on

12.1.4.2 Travel Insurance (S)

Includes:

  • Service charges for travel insurance (for change of travel plans, travel cancellation, and so on) and luggage insurance

Excludes:

  • Travel health insurance (12.1.2.0)

12.1.9 Other Insurance (S)

Includes:

  • Service charges for other insurance, such as civil liability for injury or damage to third parties or their property

  • Service charges for standardized guarantees

  • Service charges for legal insurance

  • Service charges for pet medical insurance

Excludes:

  • Civil liability or damage to third parties or their property arising from the operation of personal transport equipment (12.1.4.1)

12.1.9.0 Other Insurance (S)

Includes:

  • Service charges for other insurance, such as civil liability for injury or damage to third parties or their property

  • Service charges for standardized guarantees

  • Service charges for legal insurance

  • Service charges for pet medical insurance

Excludes:

  • Civil liability or damage to third parties or their property arising from the operation of personal transport equipment (12.1.4.1)

12.2 Financial Services

Financial services are subdivided by financial intermediation services indirectly measured and by the other forms of actual and implicit charges and remittance fees for financial services.

12.2.1 Financial Intermediation Services Indirectly Measured (S)

Financial intermediation services indirectly measured is calculated as the difference between the actual bank interest receivable and the SNA interest receivable by financial corporations on the loans they issue, and the difference between SNA interest payable and the actual bank interest payable by financial corporations on the deposits of their customers.

Includes:

  • Financial intermediation services indirectly measured of deposit-taking corporations

Includes also:

  • Implicit financial services provided by moneylenders, credit card issuers, finance associates of retailers who may be responsible for providing loans, pawnshops and corporations involved in lending (for example, in providing student loans and import/export loans)

12.2.1.0 Financial Intermediation Services Indirectly Measured (S)

Includes:

  • Financial intermediation services indirectly measured of deposit-taking corporations

Includes also:

  • Implicit financial services provided by moneylenders, credit card issuers, finance associates of retailers who may be responsible for providing loans, pawnshops and corporations involved in lending (for example, in providing student loans and import/export loans)

12.2.2 Explicit Charges by Deposit-Taking Corporations (S)

Includes:

  • Explicit charges for the financial services of deposit-taking corporations, such as commercial banks, credit unions, cooperative banks, savings banks, post banks, and postal savings banks

Excludes:

  • Remittances fees (12.2.9.1)

12.2.2.0 Explicit Charges by Deposit-Taking Corporations (S)

Includes:

  • Actual charges for the financial services of deposit-taking corporations, such as commercial banks, credit unions, cooperative banks, savings banks, post banks, and postal savings banks

Excludes:

  • Remittances fees (12.2.9.1)

12.2.9 Other Financial Services N.E.C. (S)

Includes:

  • Actual and implicit charges for the financial services of money changers and other financial institutions

  • Fees and service charges and implicit charges of money market funds, nonmoney market investment funds, brokers, and the like

  • Administrative charges and implicit charges of pension funds and the like

  • Remittance fees

12.2.9.1 Remittances Fees (S)

Includes:

  • Remittances fees for financial services provided by financial auxiliaries, such as money transfer agents and the like

12.2.9.9 Other Financial Services N.E.C. (S)

Includes:

  • Actual and implicit charges for the financial services of money changers and other financial institutions

  • Fees and service charges and implicit charges of money market funds, nonmoney market investment funds, brokers, and the like

  • Administrative and implicit charges of pension funds and the like

  • Other financial services n.e.c.

13 Personal Care, Social Protection, and Miscellaneous Goods

Division 13 covers goods and services for personal care, jewelry and watches, services of social protection, and all other services for households, which are not classified elsewhere. Goods and services for personal care cover electric and nonelectric appliances for personal care as well as hairdressing services. Goods of personal effects cover jewelry and watches, celebration and devotional articles, and travel goods and articles.

Social protection services cover childcare, nonmedical retirement homes for elderly persons and disabled persons, services to maintain people in their private homes, and related service. Group 13.9 covers all the other services for households, which are not classified elsewhere, such as fees for legal and administrative services, fees for real estate agencies, charges for undertaking, and payment for various personal services (for example, graphologists, bodyguards, matrimonial agencies, and so on).

This group also includes religious services.

13.1 Personal Care

13.1.1 Electric Appliances for Personal Care (SD)

Includes:

  • Electric razors, hair trimmers and epilators, hand-held and hood hairdryers, straightening irons, curling tongs and styling combs, sunlamps, vibrators, electric toothbrushes, other electric appliances for dental hygiene, and so on

  • Repair of such appliances

13.1.1.1 Electric Appliances for Personal Care (SD)

Includes:

  • Electric razors, hair trimmers and epilators, hand-held and hood hairdryers, straightening irons, curling tongs and styling combs, sunlamps, vibrators, electric toothbrushes and other electric appliances for dental hygiene, and so on

Excludes:

  • Repair of electric appliances for personal care (13.1.1.2)

13.1.1.2 Repair of Electric Appliances for Personal Care (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of electric appliances for personal care

13.1.2 Other Appliances, Articles, and Products for Personal Care (ND)

Includes:

  • Nonelectric appliances: shavers, razors and hair trimmers and blades therefor, scissors, nail files, combs, shaving brushes, hairbrushes, toothbrushes, nail brushes, hairpins, curlers, personal weighing machines, scales, and so on

  • Articles for personal hygiene: toilet soap, medicinal soap, cleansing oil and milk, shaving soap, shaving cream and foam, toothpaste, epilation wax, paper handkerchiefs, and so on

  • Beauty products: lipstick, nail varnish, makeup and makeup removal products (including powder compacts, brushes, and powder puffs), hair lacquers and lotions, pre-shave and after-shave products, sunbathing products and sunscreens, hair removers, perfumes and toilet waters, personal deodorants, bath products, and so on

Excludes:

  • Handkerchiefs made of fabric (03.1.3.1)

13.1.2.0 Other Appliances, Articles, and Products for Personal Care (ND)

Includes:

  • Nonelectric appliances: shavers, razors and hair trimmers and blades therefor, scissors, nail files, combs, shaving brushes, hairbrushes, toothbrushes, nail brushes, hairpins, curlers, personal weighing machines, scales, and so on

  • Articles for personal hygiene: toilet soap, medicinal soap, cleansing oil and milk, shaving soap, shaving cream and foam, toothpaste, epilation wax, paper handkerchiefs, and so on

  • Beauty products: lipstick, nail varnish, makeup and makeup removal products (including powder compacts, brushes, and powder puffs), hair lacquers and lotions, pre-shave and after-shave products, sunbathing products and sunscreens, hair removers, perfumes and toilet waters, personal deodorants, bath products, and so on

Excludes:

  • Handkerchiefs made of fabric (03.1.3.1)

13.1.3 Hairdressing Salons and Personal Grooming Establishments (S)

Includes:

  • Services of hairdressing salons, barbers, beauty shops, manicures, pedicures, Turkish baths, saunas, solariums, nonmedical massages, and so on

  • Body care, depilation, and the like, diet clubs, tattoo, and piercing services

  • Cosmetic surgery for other purposes than reconstructive surgery

Excludes:

  • Spas for medical purpose (06.2, 06.3)

  • Animals tattooing (09.4.5.0)

  • Fitness centers (09.4.6.2)

13.1.3.1 Hairdressing (S)

Includes:

  • Services of hairdressing salons or barbers for women, men, and children

13.1.3.2 Personal Grooming Treatments (S)

Includes:

  • Facial beauty treatments, depilation, solarium, pedicure, body care, manicure, thalassotherapy, Turkish baths, saunas, nonmedical massages, and so on

  • Diet clubs, tattoo, and piercing services

Excludes:

  • Spas for medical purpose (06.2, 06.3)

  • Animals tattooing (09.4.5.0)

  • Fitness centers (09.4.6.2)

13.2 Personal Effects N.E.C.

13.2.1 Jewelry and Watches (D)

Includes:

  • Precious stones and metals and jewelry fashioned out of such stones and metals

  • Costume jewelry, cuff links, and tiepins

  • Watches, stopwatches

  • Repair, remodeling, and hire of jewelry and watches

Excludes:

  • Wall clocks, alarm clocks, travel clocks (05.1.1.4)

  • Ornaments (05.1.1.4, 05.4.0.1)

  • Radio clocks (08.1.4.0)

  • Smartwatches (08.1.9.1)

  • Precious stones and metals and jewelry fashioned out of such stones and metals acquired primarily as stores of value (capital formation)

13.2.1.1 Jewelry and Watches (D)

Includes:

  • Precious stones and metals and jewelry fashioned out of such stones and metals

  • Costume jewelry, cuff links, and tiepins

  • Watches, stopwatches

Excludes:

  • Wall clocks, alarm clocks, travel clocks (05.1.1.4)

  • Ornaments (05.1.1.4, 05.4.0.1)

  • Radio clocks (08.1.4.0)

  • Smartwatches (08.1.9.1)

  • Precious stones and metals and jewelry fashioned out of such stones and metals acquired primarily as stores of value (capital formation)

13.2.1.2 Repair and Hire of Jewelry, Clocks, and Watches (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of jewelry, clocks, and watches

  • Remodeling of jewelry

  • Hire of jewelry, clocks, and watches

13.2.2 Devotional Articles and Articles for Religious and Ritual Celebrations (SD)

Includes:

  • Religious and ritual articles like crucifixes and rosaries, figurines, pictures, votive candles, amulets, strips of paper with prayers, menorah chandeliers, advent wreaths, and others

  • Articles to be used in religious celebrations and rituals

Excludes:

  • Christmas trees, holiday decorations (for Christmas, Easter, Hanukkah, Eid, Diwali, and similar) (09.2.1.3)

  • Religious books (09.7.1.9)

13.2.2.0 Devotional Articles and Articles for Religious and Ritual Celebrations (SD)

Includes:

  • Religious and ritual articles like crucifixes and rosaries, figurines, pictures, votive candles, amulets, strips of paper with prayers, menorah chandeliers, advent wreaths, and others

  • Articles to be used in religious and ritual celebrations

Excludes:

  • Christmas trees, holiday decorations (for Christmas, Easter, Hanukkah, Eid, Diwali, and similar) (09.2.1.3)

  • Religious books (09.7.1.9)

13.2.9 Other Personal Effects (SD)

Includes:

  • Travel goods and other carriers of personal effects: suitcases, trunks, travel bags, attaché cases, satchels, handbags, wallets, purses, and so on

  • Articles for babies: baby carriages, pushchairs, carrycots, recliners, back carriers, front carriers, harnesses for babies, and so on

  • Articles for smokers: pipes, lighters, cigarette cases, cigar cutters, ashtrays, electronic cigarettes devices, and so on

  • Miscellaneous personal articles: sunglasses, protective glasses, walking sticks and canes, umbrellas and parasols, fans, keyrings, pill organizers, earplugs, and so on

  • Funerary articles: coffins, gravestones, urns, and so on

  • Lighter fuel; wall thermometers and barometers

  • Repair and hire of other personal effects

Excludes:

  • Baby furniture (05.1.1.1)

  • Shopping bags (05.2.1.9)

  • Feeding bottles (05.4.0.3)

  • Walking sticks and canes used for medical reasons (06.1.3.3)

  • Car seats for babies (07.2.1.3)

13.2.9.1 Travel Goods and Articles for Babies and Other Personal Effects N.E.C. (SD)

Includes:

  • Travel goods and other carriers of personal effects: suitcases, trunks, travel bags, attaché cases, satchels, handbags, wallets, purses, and so on

  • Articles for babies: baby carriages, pushchairs, carrycots, recliners, back carriers, front carriers, harnesses for babies, and so on

  • Articles for smokers: pipes, lighters, cigarette cases, cigar cutters, ashtrays, electronic cigarettes devices, and so on

  • Miscellaneous personal articles: sunglasses, protective glasses, walking sticks and canes, umbrellas and parasols, fans, keyrings, pill organizers, earplugs, and so on

  • Funerary articles: coffins, gravestones, urns, and so on

  • Lighter fuel, wall thermometers, and barometers

Excludes:

  • Baby furniture (05.1.1.1)

  • Shopping bags (05.2.1.9)

  • Feeding bottles (05.4.0.3)

  • Walking sticks and canes used for medical reasons (06.1.3.3)

  • Car seats for babies (07.2.1.3)

13.2.9.2 Repair or Hire of Other Personal Effects (S)

The cost of materials is included only if the materials are not separately invoiced.

Includes:

  • Repair of other personal effects

  • Hire of other personal effects

13.3 Social Protection

Social protection as defined here covers nonmedical assistance and support services provided to persons who are elderly, disabled, having occupational injuries and diseases, survivors, unemployed, destitute, homeless, low-income earners, indigenous people, immigrants, refugees, alcohol and substance abusers, and so on.

It also covers assistance and support services provided to families and children.

13.3.0 Social Protection (S)

Social protection services include residential care, home help, and day care. More specifically, this class covers payments by households for:

  • Nonmedical retirement homes for elderly persons, non-medical residences for disabled persons, rehabilitation centers providing nonmedical long-term support for individuals rather than health care and rehabilitative therapy, schools for disabled persons where the main aim is to help students overcome their disability

  • Nonmedical help to maintain elderly and disabled persons at home (home-cleaning services, meal programs, non-medical day care centers, day care services, and holiday care services)

  • Child-minding outside the home, nurseries, day care facilities wet-nurses, crèches, kindergartens (other than educational), play schools, and other child-minding facilities

  • Counseling, guidance, arbitration, fostering, and adoption services for families

Excludes:

  • Social assistance and other social care services that are integrated into a package of care along with medical services are to be included in 06.2.3 if medical services do not require an overnight stay and 06.3.2 if they do. For example, services of medical convalescent homes or convalescent hospitals; services of homes for the elderly with nursing care; inpatient care hospices; services of palliative care establishments for the terminally ill; services of nursing homes; rest homes with nursing care; services of skilled nursing facilities; services of teaching nursing homes; services of residential mental retardation facilities; mental health and substance abuse facilities for

chronic patient (for example, those with dementia); and services of alcoholism or drug addiction rehabilitation facilities (other than licensed hospitals).

  • Services of mental health convalescent homes or hospitals (06.3.2.0).

  • Babysitters and so on (05.6.2.1).

  • Educational kindergartens (10.1.0.1).

13.3.0.1 Childcare Services (S)

Includes:

  • Child-minding outside the home

  • Nurseries, day care facilities, wet-nurses, crèches, and other child-minding facilities for babies

  • After school centers

Excludes:

  • Babysitters and so on (05.6.2.1)

  • Educational kindergartens (10.1.0.1)

13.3.0.2 Nonmedical Retirement Homes for Elderly Persons and Residences for Disabled Persons (S)

Includes:

  • Nonmedical retirement homes for elderly persons

  • Nonmedical residences for disabled persons

Excludes:

  • Social assistance and other social care services that are integrated into a package of care along with medical services are to be included in 06.2.3 if medical services do not require an overnight stay and 06.3.2 if they do. For example, services of medical convalescent homes or convalescent hospitals; services of homes for the elderly with nursing care; inpatient care hospices; services of palliative care establishments for the terminally ill; services of nursing homes; rest homes with nursing care; services of skilled nursing facilities; services of teaching nursing homes; services of residential mental retardation facilities; mental health and substance abuse facilities for chronic patient (for example, those with dementia); and services of alcoholism or drug addiction rehabilitation facilities (other than licensed hospitals).

  • Services of mental health convalescent homes or hospitals (06.3.2.0).

13.3.0.3 Services to Maintain People in Their Private Homes (S)

Includes:

  • Help to maintain elderly and disabled persons at home (home-cleaning services, meal programs, day care centers, day care services, and holiday care services)

13.3.0.9 Other Social Protection Services (S)

Includes:

  • Schools for disabled persons where the main aim is to help students overcome their disability

  • Guidance, arbitration, fostering, and adoption services for families

13.9 Other Services N.E.C.

13.9.0 Other Services N.E.C. (S)

Includes:

  • Fees for legal services, employment agencies, and so on

  • Payment for the services of lawyers, notaries, accountants, and so on

  • Charges for undertaking and other funeral services

  • Payment for the services of estate agents, housing agents, auctioneers, salesroom operators, and other intermediaries

  • Payment for photocopies and other reproductions of documents

  • Fees for the issue of birth, marriage, and death certificates, and other administrative documents

  • Expenditures for religious services, for example, requiems, baptizing, marriage services

  • Expenditure for nonreligious services and events, such as coming of age celebrations in Latin American “Quince” or debutante balls

  • Payment for newspaper notices and advertisements

  • Payment for the services of graphologists, astrologers, palmists, private detectives, bodyguards, matrimonial agencies and marriage guidance counselors, public writers, miscellaneous concessions (seats, toilets, cloakrooms), and so on

  • Services provided by prostitutes and the like

  • Firearms licenses

Excludes:

  • Food or beverages consumed in brothels if charged separately (11.1.1, 11.1.2)

13.9.0.1 Prostitution (S)

Includes:

  • Services provided by prostitutes or sex workers and the like

Excludes:

  • Food or beverages consumed in brothels if charged separately (11.1.1, 11.1.2)

13.9.0.2 Religious Services (S)

Includes:

  • Expenditures for religious services, for example, requiems, baptizing, marriage services

13.9.0.9 Other Services N.E.C. (S)

Includes:

  • Fees for legal services, employment agencies, and so on

  • Payment for the services of lawyers, accountants, and so on

  • Expenditure for nonreligious services and events, such as coming of age celebrations in Latin American “quince” or debutante balls

  • Charges for undertaking and other funeral services

  • Payment for the services of estate agents, housing agents, auctioneers, salesroom operators, and other intermediaries

  • Payment for photocopies, printing services, and other reproductions of documents

  • Fees for the issue of birth, marriage, and death certificates, and other administrative documents

  • Payment for newspaper notices and advertisements

  • Payment for the services of graphologists, astrologers, palmists, private detectives, bodyguards, matrimonial agencies and marriage guidance counselors, public writers, miscellaneous concessions (seats, toilets, cloakrooms), and so on

  • Firearms licenses

Appendix 4 Resolution Concerning Consumer Price Indices Adopted by the Seventeenth International Conference of Labour Statisticians, 2003

Preamble1

The Seventeenth International Conference of Labour Statisticians

Having been convened at Geneva by the Governing Body of the International Labour Organization and having met from 24 November to 3 December 2003

Recalling the resolution adopted by the Fourteenth International Conference of Labour Statisticians concerning consumer price indices and recognizing the continuing validity of the basic principles recommended therein and, in particular, the fact that the consumer price index (CPI) is designed primarily to measure the changes over time in the general level of prices of goods and services that a reference population acquires, uses, or pays for

Recognizing the need to modify and broaden the existing standards in the light of recent methodological and computational developments to enhance the usefulness of the international standards in the provision of technical guidelines to all countries

Recognizing the usefulness of such standards in enhancing the international comparability of the statistics

Recognizing that the CPI is used for a wide variety of purposes and that governments should be encouraged to identify the (priority) purposes a CPI is to serve, to provide adequate resources for its compilation, and to guarantee the professional independence of its compilers

Recognizing that the (priority) objectives and uses of a CPI differ among countries and that, therefore, a single standard could not be applied universally

Recognizing that the CPI needs to be credible to observers and users, both national and international, and that better understanding of the principles and procedures used to compile the index will enhance the users’ confidence in the index

Agrees that the principles and methods used in constructing a CPI should be based on the guidelines and methods that are generally accepted as constituting good statistical practices

Adopts, this third day of December 2003, the following resolution which replaces the previous one adopted in 1987

The Nature and Meaning of a Consumer Price Index

1. The CPI is a current social and economic indicator that is constructed to measure changes over time in the general level of prices of consumer goods and services that households acquire, use, or pay for consumption.

2. The index aims to measure the change in consumer prices over time. This may be done by measuring the cost of purchasing a fixed basket of consumer goods and services of constant quality and similar characteristics, with the products in the basket being selected to be representative of households’ expenditure during a year or other specified period. Such an index is called a fixed-basket price index.

3. The index may also aim to measure the effects of price changes on the cost of achieving a constant standard of living (that is level of utility or welfare). This concept is called a cost of living index (COLI). A fixed-basket price index, or another appropriate design, may be employed as an approximation to a COLI.

The Uses of a Consumer Price Index

4. The CPI is used for a wide variety of purposes, the two most common ones being (1) to adjust wages as well as social security and other benefits to compensate, partly or completely, for changes in the cost of living or in consumer prices; and (2) to provide an average measure of price inflation for the household sector as a whole, for use as a macroeconomic indicator. CPI subindices are also used to deflate components of household final consumption expenditure in the national accounts and the value of retail sales to obtain estimates of changes in their volume.

5. CPIs are also used for other purposes, such as monitoring the overall rate of price inflation for all sectors of the economy, the adjustment of government fees and charges, the adjustment of payments in commercial contracts, and for formulating and assessing fiscal and monetary policies and trade and exchange rate policies. In these types of cases, the CPI is used as more appropriate measures do not exist at present, or because other characteristics of the CPI (for example, high profile, wide acceptance, predictable publication schedule, and so on) are seen to outweigh any conceptual or technical deficiencies.

6. Given that the CPI may be used for many purposes, it is unlikely that one index can perform equally satisfactorily in all applications. It may therefore be appropriate to construct a number of alternative price indices for specific purposes, if the requirements of the users justify the extra expense. Each index should be properly defined and named to avoid confusion and a “headline.” CPI measure should be explicitly identified.

7. Where only one index is compiled, it is the main use that should determine the type of index compiled, the range of goods and services covered, its geographic coverage, the households it relates to, as well as to the concept of price and the formula used. If there are several major uses, it is likely that compromises may have to be made with regard to how the CPI is constructed. Users should be informed of the compromises made and of the limitations of such an index.

Scope of the Index

8. The scope of the index depends on the main use for which it is intended and should be defined with regard to the type of households, geographic areas, and the categories of consumer goods and services acquired, used, or paid for by the reference population.

9. If the primary use of the CPI is for adjusting money incomes, a relevant group of households, such as wage and salary earners, may be the appropriate target population. For this use, all consumption expenditures by these households, at home and abroad, may be covered. If the primary use of the CPI is to measure inflation in the domestic economy, it may be appropriate to cover consumption expenditures made within the country, rather than the expenditures of households resident within the country.

10. In general, the reference population for a national index should be defined very widely. If any income groups, types of households or particular geographic areas are excluded, for example, for cost or practical considerations, then this should be explicitly stated.

11. The geographic scope refers to the geographic coverage of price collection and of consumption expenditures of the reference population and both should be defined as widely as possible, and preferably consistently. If price collection is restricted to particular areas due to resource constraints, then this should be specified. The geographic coverage of the consumption expenditure may be defined either as covering consumption expenditure of the resident population (resident consumption) or consumption expenditure within the country (domestic consumption).

12. Significant differences in the expenditure patterns and price movements between specific population groups or regions may exist, and care should be taken to ensure that they are represented in the index. Separate indices for these population groups or regions may be computed if there is sufficient demand to justify the additional cost.

13. In accordance with its main purpose, the CPI should conceptually cover all types of consumer goods and services of significance to the reference population, without any omission of those that may not be legally available or may be considered socially undesirable. Where appropriate, special aggregates may be constructed to assist those users who may wish to exclude certain categories of goods or services for particular applications or for analysis. Whenever certain goods or services have been excluded from the index, this should be clearly documented.

14. Goods and services purchased for business purposes, expenditures on assets such as works of art, financial investment (as distinct from financial services), and payments of income taxes, social security contributions, and fines are not considered to be consumer goods or services and should be excluded from the coverage of the index. Some countries regard expenditures on the purchase of houses entirely as a capital investment and, as such, exclude them from the index.

Acquisition, Use, or Payment

15. In determining the scope of the index, the time of recording, and valuation of consumption, it is important to consider whether the purposes for which the index is used are best satisfied by defining consumption with regard to “acquisition,” “use,” or “payment.”2 The “acquisition” approach is often used when the primary purpose of the index is to serve as a macroeconomic indicator. The “payment” approach is often used when the primary purpose of the index is for the adjustment of compensation or income. Where the aim of the index is to measure changes in the cost of living, the “use” approach may be most suitable. The decision regarding the approach to follow for a particular group of products should in principle be based on the purpose of the index, as well as on the costs and the acceptability of the decision to the users who should be informed of the approach followed for different products. Because of the practical difficulties in uniformly defning consumption and estimating the flow of services provided by other durable goods with regard to “use,” it may be necessary to adopt a mixed approach, for example, “use” for owner-occupied housing and “acquisition” or “payment” basis for other consumer durables.

16. The differences between the three approaches are most pronounced in dealing with products for which the times of acquisition, use, and payment do not coincide, such as owner-occupied housing, durable goods, and products acquired on credit.

17. The most complex and important of the products mentioned previously is owner-occupied housing. In most countries, a significant proportion of households are owner-occupiers of their housing, with the housing being characterized by a long useful life and a high purchase outlay (price). Under the “acquisition” approach, the value of the new dwellings acquired in the weight reference period may be used for deriving the weight (and the full price of the dwelling is included in the CPI at the time of acquisition, regardless of when the consumption is taking place). Under the “payment” approach, the weights reflect the amounts actually paid out for housing (and the prices enter the CPI in the period(s) when the prices are paid). Under the “use” approach the weights are based on the value of the flow of housing services consumed during the weight reference period estimated using an implicit or notional cost (and prices or estimated opportunity costs enter the CPI when the consumption is taking place).

18. Own-account consumption, remuneration in kind, and goods and services provided without charge or subsidized by governments and nonprofit institutions serving households may be important in some countries where the purpose of the index is best satisfied by defining consumption with regard to “use” or “acquisition” (under the payment approach these are out of scope). The inclusion of these products will require special valuation and pricing techniques.

Basket and Weights

19. Decisions on the composition of the basket and the weights follow directly from the scope, as well as from the choice between the “acquisition,” “use,” or “payment” approaches.

20. Once defined, the expenditures that fall within the scope of the index should be grouped into similar categories in a hierarchical classification system, for example, divisions/groups/classes, for compilation as well as analytical purposes. There should be consistency between the classification used for index compilation and the one used for household expenditure statistics. The CPI classification should meet the needs of users for special sub-indices. For the purposes of international comparisons, the classification should also be reconcilable with the most recent version of the United Nations Classification of Individual Consumption According to Purpose, at least at its division level.3

21. In order to facilitate the analysis and interpretation of the results of the index, it may be desirable to classify goods and services according to various supplementary classifications, for example, source of origin, durability, and seasonality. Calculation of the CPI by using various classifications should generate the same overall results as the original index.

22. The classification should also provide a framework for the allocation of expenditure weights. Expenditures at the lowest level of the classification system, expressed as a proportion of the total expenditure, determine the weights to be used at this level. When the weights are to remain fixed for several years, the objective should be to adopt weights that are representative of the contemporary household behavior.

23. The two main sources for deriving the weights are the results from household expenditure surveys and national accounts estimates on household consumption expenditure. The results from a household expenditure survey are appropriate for an index defined to cover the consumption expenditures of reference population groups resident within the country, while national account estimates are suitable for an index defined to cover consumption expenditures within the country. The decision about what source or sources to use and how they should be used depends on the main purpose of the index and on the availability and quality of appropriate data.

24. The information from the main source (household expenditure surveys or national accounts) should be supplemented with all other available information on the expenditure pattern. Sources of such information that can be used for disaggregating the expenditures are surveys of sales in retail outlets, point-of-purchase surveys, surveys of production, export and import data, and administrative sources. Based on these data the weights for certain products may be further disaggregated by region and type of outlet. Where the data obtained from different sources relate to different periods, it is important to ensure, before weights are allocated, that expenditures are adjusted so that they have the same reference period.

25. Where the weight reference period differs significantly from the price reference period, the weights should be price updated to take account of price changes between the weight reference period and price reference period. Where it is likely that price-updated weights are less representative of the consumption pattern in the price reference period this procedure may be omitted.

26. Weights should be reviewed and if appropriate revised as often as accurate and reliable data are available for this to be done, but at least once every five years. Revisions are important to reduce the impact on the index of product substitutions and to ensure the basket of goods and services and their weights remain representative.4 For some categories, it may be necessary to update the weights more frequently as such weights are likely to become out of date more quickly than higher-level weights. In periods of high inflation, the weights should be updated frequently.

27. When a new basket (structure or weights) replaces the old, a continuous CPI series should be created by linking5 together the index numbers based on the new basket of goods and services to those based on the earlier basket. The particular procedure used to link index number series will depend on the particular index compilation technique used. The objective is to ensure that the technique used to introduce a new basket does not, of itself, alter the level of the index.

28. Completely new types of goods and services (that is goods and services that cannot be classified to any of the existing elementary aggregates) should normally be considered for inclusion only during one of the periodic review and reweighting exercises. A new model or variety of an existing product that can be fitted within an existing elementary aggregate should be included at the time it is assessed as having a significant and sustainable market share. If a quality change is detected an appropriate quality adjustment should be made.6

29. Some products such as seasonal products, insurance, second-hand goods, expenditure abroad, interest, own production, expenditures on purchase and construction of dwellings, and so on, may need special treatment when constructing their weights. The way these products are dealt with should be determined by the main purpose of the index, national circumstances, and the practicalities of compilation.

30. Seasonal products should be included in the basket. It is possible to use (1) a fixed-weight approach which uses the same weight for the seasonal product in all months using an imputed price in the out-of-season months; or (2) a variable weights approach where a changing weight is attached to the product in various months. The decision on the approach should be based on national circumstances.

31. The expenditure weights for second-hand goods should be based either on the net expenditure of the reference population on such goods or the gross expenditure, depending on the purpose of the index.

32. When consumption from own production is within the scope of the index, the weights should be based on the value of quantities consumed from own production. Valuation of consumption from own production should be made on the basis of prices prevailing on the market, unless there is some reason to conclude that market prices are not relevant or cannot be reliably observed, or there is no interest in using hypothetically imputed prices. In this case, the expenditures and prices for the inputs into the production of these goods and services could be used instead. The third option is to valuate it by using quality-adjusted market prices.

Sampling for Price Collection

33. A CPI is an estimate based on a sample of households to estimate weights, and a sample of zones within regions, a sample of outlets, a sample of goods and services, and a sample of time periods for price observation.

34. The sample size and sample selection methods for both outlets and the goods and services for which price movements over time are to be observed should ensure that the prices collected are representative and sufficient to meet the requirements for the accuracy of the index, but also that the collection process is cost-effective. The sample of prices should reflect the importance, with regard to relative expenditures, of the goods and services available for purchase by consumers in the reference period, the number, types, and geographic spread of outlets that are relevant for each good and service, and the dispersion of prices and price changes across outlets.

35. Probability sampling techniques are the preferred methods, in principle, as they permit sound statistical inference and control over the representativity of the sample. In addition, they permit estimation of sampling variation (errors). However, they may be costly to implement and can result in the selection of products that are very difficult to price to constant quality.

36. In cases where appropriate sampling frames are lacking and it is too costly to obtain them, samples of outlets and products have to be obtained by nonprobability methods. Statisticians should use available information and apply their best judgment to ensure that representative samples are selected. The possibility of applying cutoff or detailed quota sampling7 strategy may be considered, especially where the sample size is small. A mixture of probability and nonprobability sampling techniques may be used.

37. Efficient and representative sampling, whether random or purposive, requires comprehensive and up-to-date sampling frames for outlets and products. Sample selection can be done by the head office from centrally held sampling frames, in the field by price collectors, or by a mixture of the two. In the first case, price collectors should be given precise instructions on which outlets to visit and which products to price. In the second case, price collectors should be given detailed and unambiguous guidelines on the local sampling procedures to be adopted. Statistical business registers, business telephone directories, results from the point-of-purchase surveys or from surveys of sales in different types of outlets, and lists of internet sellers may be used as sampling frames for the central selection of outlets. Catalogs or other product lists drawn up by major manufacturers, wholesalers, or trade associations, or lists of products that are specific to individual outlets such as large supermarkets might be used as the sampling frame for selection of products. Data scanned by barcode readers at the cashier’s desk (electronic databases) can be particularly helpful in the selection of goods and services.

38. The sample of outlets and of goods and services should be reviewed periodically and updated where necessary to maintain its representativeness.

Index Calculation

39. The compilation of a CPI consists of collecting and processing price and expenditure data according to specified concepts, definitions, methods, and practices. The detailed procedures that are applied will depend on particular circumstances.

40. CPIs are calculated in steps. In the first step, the elementary aggregate indices are calculated. In the subsequent steps, higher-level indices are calculated by aggregating the elementary aggregate indices.

Elementary Aggregate Indices

41. The elementary aggregate is the smallest and relatively homogeneous set of goods or services for which expenditure data are defined (used) for CPI purposes. It is the only aggregate for which an index number is constructed without any explicit expenditure weights, although other kinds of weights might be explicitly or implicitly introduced into the calculation. The set of goods or services covered by an elementary aggregate should be similar in their end-uses and are expected to have similar price movements. They may be defined not only with regard to their characteristics but also with regard to the type of location and outlet in which they are sold. The degree of homogeneity achieved in practice will depend on the availability of corresponding expenditure data.

42. An elementary index is a price index for an elementary aggregate. As expenditure weights usually cannot be attached to the prices or price relatives for the sampled products within the elementary aggregate, an elementary index is usually calculated as an unweighted average of the prices or price relatives. When some information on weights is available, this should be taken into account when compiling the elementary indices.

43. There are several ways in which the prices, or the price relatives, might be averaged. The three most commonly used formulae are the ratio of arithmetic mean prices, the geometric mean, and the arithmetic mean of price relatives. The choice of formula depends on the purpose of the index, the sample design, and the mathematical properties of the formula. It is possible to use different formulae for different elementary aggregates within the same CPI. It is recommended that the geometric mean formula be used, particularly where there is a need to reflect substitution within the elementary aggregate or where the dispersion in prices or price changes within the elementary aggregate is large. The geometric mean has many advantages because of its mathematical properties. The ratio of arithmetic mean prices may be used for elementary aggregates that are homogeneous and where consumers have only limited opportunity to substitute or where substitution is not to be reflected in the index. The arithmetic mean of price relative formula should be avoided in its chained form, as it is known to result in biased estimates of the elementary indices.

44. The elementary index may be computed by using either a chained or direct form of the formula chosen. The use of a chained form may make the estimation of missing prices and the introduction of replacement products easier.

Upper-Level Indices

45. These price indices are constructed as weighted averages of elementary aggregate indices. Several types of formulae can be used to average the elementary aggregate indices. In order to compile a timely index, the practical option is to use a formula that relies on the weights relating to some past period. One such formula is the Laspeyres-type index, the formula used by most national statistical agencies.

46. For some purposes, it may be appropriate to calculate the index retrospectively by using an index number formula that employs both base period weights and current period weights, such as the Fisher, Törnqvist, or Walsh index. Comparing the difference between the index of this type and the Laspeyres-type index can give some indication of the combined impact of income changes, preference changes, and substitution effects over the period in question, providing important information for producers and users of the CPI.

47. Where the change in an upper-level index between two consecutive periods such as t – 1 and t is calculated as the weighted average of the individual indices between t – 1 and t, care should be taken to ensure that the weights are updated to take account of the price changes between the price reference period 0 and the preceding period t – 1. Failure to do so may result in a biased index.

Price Observations

48. The number and quality of the prices collected are critical determinants of the reliability of the index, along with the specifications of the products priced. Standard methods for collecting and processing price information should be developed and procedures put in place for collecting them systematically and accurately at regular intervals. Price collectors should be well trained and well supervised, and should be provided with a comprehensive manual explaining the procedures they have to follow.

Collection

49. An important consideration is whether the index or parts of the index should relate to monthly (or quarterly) average prices or to prices for a specific period of time (for example, a single day or week in a month). This decision is related to a number of issues, which include the use of an index, the practicalities of carrying out price collection, and the pattern of price movements. When point-in-time pricing is adopted, prices should be collected over a very small number of days each month (or quarter). The interval between price observations should be uniform for each product. Since the length of the month (or quarter) varies, this uniformity needs to be defined carefully. When the aim is monthly (or quarterly) average prices, the prices collected should be representative of the period to which they refer.

50. Attention should also be paid to the time of day selected for price observation. For example, in the case of perishable goods, price observations may need to be collected at the same time on the same day of the week and not just before closing time, when stocks may be low or sold cheaply to minimize wastage.

51. Price collection should be carried out in such a way as to be representative of all geographical areas within the scope of the index. Special care should be taken where significant differences in price movements between areas may be expected.

52. Prices should be collected in all types of outlets that are important, including internet sellers, open-air markets and informal markets, and in free markets as well as price-controlled markets. Where more than one type of outlet is important for a particular type of product, this should be reflected in the initial sample design and an appropriately weighted average should be used in the calculation of the index.

53. Specifications should be provided detailing the variety and size of the products for which price information is to be collected. These should be precise enough to identify all the price-determining characteristics that are necessary to ensure that, as far as possible, the same goods and services are priced in successive periods in the same outlet. The specifications should include, for example, make, model, size, terms of payment, conditions of delivery, type of guarantees, and type of outlet. This information could be used in the procedures used for replacement and for quality adjustment.

54. Prices to be collected are actual transaction prices, including indirect taxes and nonconditional discounts, which would be paid, agreed, or costed (accepted) by the reference population. Where prices are not displayed or have to be negotiated, where quantity units are poorly defined or where actual purchase prices may deviate from listed or fixed prices, it may be necessary for the price collectors to purchase products in order to determine the transaction prices. A budget may be provided for any such purchases. When this is not possible, consideration may be given to interviewing customers about the prices actually paid. Tips for services, where compulsory, should be treated as part of the price paid.

55. Exceptional prices charged for stale, shop-soiled, damaged, or otherwise imperfect goods sold at clearance prices should be excluded, unless the sale of such products is a permanent and widespread phenomenon. Sale prices, discounts, cut prices, and special offers should be included when applicable to all customers without there being significant limits to the quantities that can be purchased by each customer.

56. In periods of price control or rationing, where limited supplies are available at prices which are held at a low level by measures such as subsidies to the sellers, government procurement, price control, and so on, such prices as well as those charged on any significant unrestricted markets should be collected. The different price observations should be combined in a way that uses the best information available with respect to the actual prices paid and the relative importance of the different types of sales.

57. For each type of product, different alternatives for collecting prices should be carefully investigated, to ensure that the price observations could be made reliably and effectively. Means of collection could include visits to outlets with paper forms or hand-held devices, interviews with customers, computer-assisted telephone interviews, mail-out questionnaires, brochures, price lists provided by large or monopoly suppliers of services, scanner data, and prices posted on the internet. For each alternative, the possible cost advantages need to be balanced against an assessment of the reliability and timeliness of each of the alternatives.

58. Where centrally regulated or centrally fixed prices are collected from the regulatory authorities, checks should be made to ascertain whether the goods and services in question are actually sold and whether these prices are in fact paid. For goods and services where the prices paid are determined by combinations of subscription fees and piece rates (for example, for newspapers, journals, public transport, electricity, and telecommunications) care must be taken to ensure that a representative range of price offers is observed. Care must also be taken to ensure that prices charged to different types of consumers are observed, for example, those linked to the age of the purchaser or to memberships of particular associations.

59. The collected price information should be reviewed for comparability and consistency with previous observations, the presence of replacements, unusual or large price changes, and to ensure that price conversions of goods priced in multiple units or varying quantities are properly calculated. Extremely large or unusual price changes should be examined to determine whether they are genuine price changes or are due to changes in quality. Procedures should be put in place for checking the reliability of all price observations. This could include a program of direct pricing and selective repricing of some products shortly after the initial observation was made.

60. Consistent procedures should be established for dealing with missing price observations because of, for example, inability to contact the seller, nonresponse, observation rejected as unreliable, or products temporarily unavailable. Prices of nonseasonal products that are temporarily unavailable should be estimated until they reappear or are replaced, by using appropriate estimation procedures, for example, imputation on the basis of price changes of similar nonmissing products. Carrying forward the last observed price should be avoided, especially in periods of high inflation.

Replacements

61. Replacement of a product will be necessary when it disappears permanently. Replacement should be made within the first three months (quarter) of the product becoming unavailable. It may also be necessary when the product is no longer available or sold in significant quantities or under normal sale conditions. Clear and precise rules should be developed for selecting the replacement product. Depending on the frequency of sampling and the potential for accurate quality adjustment, the most commonly used alternatives are to select (1) the most similar to the replaced variety, (2) the most popular variety among those that belong to the same elementary aggregate, and (3) the variety most likely to be available in the future. Precise procedures should be laid down for price adjustments with respect to the difference in characteristics when replacements are necessary, so that the impact of changes in quality is excluded from the observed price.

62. Replacement of an outlet may be motivated if prices cannot be obtained, for example, because it has closed permanently, because of a decline in representativeness or because the outlet no longer cooperates. Clear rules should be established on when to discontinue price observations from a selected outlet, on the criteria for selecting a replacement, as well as on the adjustments that may be required to price observations or weights. Such rules should be consistent with the objectives of the index and with the way in which the outlet sample has been determined.

63. Deletion of an entire elementary aggregate will be necessary if all products in that elementary aggregate disappear from most or all outlets and it is not possible to locate a sufficient number of price observations to continue to compile a reliable index for this elementary aggregate. In such situations, it is necessary to redistribute the weight assigned to the elementary aggregate among the other elementary aggregates included in the next level of aggregation.

Quality Changes

64. The same product should be priced in each period as long as it is representative. However, in practice, products that can be observed at different time periods may differ with respect to package sizes, weights, volumes, features, and terms of sale, as well as other characteristics. Thus, it is necessary to monitor the characteristics of the products being priced to ensure that the impact of any differences in price-relevant or utility-relevant characteristics can be excluded from the estimated price change.

65. Identifying changes in quality or utility is relatively more difficult for complex durable goods and services. It is necessary, therefore, to collect a considerable amount of information on the relevant characteristics of the products for which prices are collected. The most important information can be obtained in the course of collecting prices. Other sources of information on price-relevant or utility-relevant characteristics can be producers, importers, or wholesalers of the goods included and the study of articles and advertisements in trade publications.

66. When a quality change is detected, an adjustment must be made to the price, so that the index reflects as nearly as possible the pure price change. If this is not done, the index will either record a price change that has not taken place or fail to record a price change that did happen. The choice of method for such adjustments will depend on the particular goods and services involved. Great care needs to be exercised because the accuracy of the resulting index depends on the quality of this process. To assume automatically that all price change is a reflection of the change in quality should be avoided, as should the automatic assumption that products with different qualities are essentially equivalent.

67. The methods for estimating quality-adjusted prices8 may be:

  • (1) Explicit (or direct) quality-adjustment methods that directly estimate the value of the quality difference between the old and new product and adjust one of the prices accordingly. Pure price change is then implicitly estimated as the difference in the adjusted prices.

  • (2) Implicit (or indirect) quality-adjustment methods which estimate the pure price change component of the price difference between the old and new products based on the price changes observed for similar products. The difference between the estimate of pure price change and the observed price change is considered as change due to quality difference.

Some of these methods are complex, costly, and difficult to apply. The methods used should as far as possible be based on objective criteria.

Accuracy

68. As with all statistics, CPI estimates are subject to errors that may arise from a variety of sources.9 Compilers of CPIs need to be aware of the possible sources of error and to take steps during the design of the index, its construction, and compilation processes to minimize their impact, for which adequate resources should be allocated.

69. The following are some well-known sources of potential error, either in pricing or in index construction, that over time can lead to errors in the overall CPI: incorrect selection of products and incorrect observation and recording of their prices, incorrect selection of outlets and timing of price collection, failure to observe and adjust correctly for quality changes, appearance of new goods and outlets, failure to adjust for product and outlet substitution or loss of representativity, and the use of inappropriate formulae for computing elementary aggregate and upper-level indices.

70. To reduce the index’s potential for giving a misleading picture, it is in general essential to update weights and baskets regularly, to employ unbiased elementary aggregate formulae, to make appropriate adjustments for quality change, to allow adequately and correctly for new products, and to take proper account of substitution issues as well as quality control of the entire compilation process.

Dissemination

71. The CPI estimate should be computed and publicly released as quickly as possible after the end of the period to which it refers and according to a preannounced timetable. It should be made available to all users at the same time, in a convenient form, and should be accompanied by a short methodological explanation. Rules relating to its release should be made publicly available and strictly observed. In particular, they should include details of who has prerelease access to the results, why, under what conditions, and how long before the official release time.

72. The general CPI should be compiled and released monthly. Where there is no strong user demand for a monthly series or countries do not have the necessary resources, the CPI may be prepared and released quarterly. Depending on national circumstances, subindices may be released with a frequency that corresponds to users’ needs.

73. When it is found that published index estimates have been seriously distorted because of errors or mistakes made in their compilation, corrections should be made and published. Such corrections should be made as soon as possible after detection according to publicly available policy for correction. Where the CPI is widely used for adjustment purposes for wages and contracts, retrospective revisions should be avoided to the extent possible.

74. The publication of the CPI results should show the index level from the index reference period. It is also useful to present derived indices, such as the one that shows changes in the major aggregates between (1) the current month and the previous month, (2) the current month and the same month of the previous year, and (3) the average of the latest 12 months and the average of the previous 12 months. The indices should be presented in both seasonally adjusted and unadjusted terms, if seasonally adjusted data are available.

75. Comments and interpretation of the index should accompany its publication to assist users. An analysis of the contributions of various products or group of products to the overall change and an explanation of any unusual factors affecting the price changes of the major contributors to the overall change should be included.

76. Indices for the major expenditure groups should also be compiled and released. Consideration should be given to compiling indices for the divisions and groups of the Classification of Individual Consumption According to Purpose.10 Nine subindices for different regions or population groups, and alternative indices designed for analytical purposes, may be compiled and publicly released if there is a demand from users, they are judged to be reliable, and their preparation is cost-effective.

77. The index reference period may be chosen to coincide with the latest weight reference period or it could be established to coincide with the base period of other statistical series. It should be changed as frequently as necessary to ensure that the index numbers remain easy to present and understand.

78. Average prices and price ranges for important and reasonably homogeneous products may be estimated and published in order to support the research and analytical needs of users.

79. Countries should report national CPI results and methodological information to the International Labour Office as soon as possible after their national release.

80. Comparing national CPI movements across countries is difficult because of the different measurement approaches used by countries for certain products, particularly housing and financial services. The exclusion of housing (actual rents and either imputed rents or acquisition of new houses, and maintenance and repair of dwellings) and financial services from the all-items index will make the resulting estimates of price change for the remaining products more comparable across countries. Therefore, in addition to the all-items index, countries should, if possible, compile and provide for dissemination to the international community an index that excludes housing and financial services. It should be emphasized, though, that even for the remaining products in scope, there can still be difficulties when making international comparisons of changes in consumer prices.

Consultations and Integrity

81. The compiling agency should have the professional independence, competence, and resources necessary to support a high-quality CPI program. The United Nations Fundamental Principles of Official Statistics11 and the International Labour Organization Guidelines Concerning Dissemination Practices for Labour Statistics12 should be respected.

82. The agency responsible for the index should consult representatives of users on issues of importance for the CPI, particularly during preparations for any changes to the methodology used in compiling the CPI. One way of organizing such consultations is through the establishment of advisory committee(s) on which social partners, as well as other users and independent experts, might be represented.

83. In order to ensure public confidence in the index, a full description of the data collection procedures and the index methodology should be prepared and made widely available. Reference to this description should be made when the CPI is published. The documentation should include an explanation of the main objectives of the index, details of the weights, the index number formulae used, and a discussion of the accuracy of the index estimates. The precise identities of the outlets and goods and services used for price collection should not be revealed.

84. Users should be informed in advance of any changes that are going to be made to the scope, weights, or methodology used to estimate the CPI.

85. Technical guidance on the compilation of consumer price indices is provided in the Consumer Price Index Manual: Theory and Practice.13 This manual should be updated periodically in order to reflect current best practices.

Annex 1 Terminology and Definitions

(1) “Consumer goods” are goods or services that are used by households for the satisfaction of individual needs or wants.

(2) “Consumption expenditures” are expenditure on consumer goods and services and can be defined with regard to “acquisition,”1 “use,” or “payment”:

  • “Acquisition” indicates that it is the total value of the goods and services acquired during a given period that should be taken into account, irrespective of whether they were wholly paid for or used during the period. This approach could be extended to include the estimated values of own-account production and social transfers in kind received from government or nonprofit institutions. The prices enter the CPI in the period when consumers accept or agree prices, as distinct from the time payment is made.

  • “Use” indicates that it is the total value of all goods and services actually consumed during a given period that should be taken into account; for durable goods this approach requires valuing the services provided by these goods during the period. The prices (opportunity costs) enter the CPI in the period of consumption.

  • “Payment” indicates that it is the total payment made for goods and services during a given period that should be taken into account, without regard to whether they were delivered or used during the period. The prices enter the CPI in the period or periods when the payment is made.

(3) “Scope of the index” refers to the population groups, geographic areas, products, and outlets for which the index is constructed.

(4) “Coverage” of the index is the set of goods and services represented in the index. For practical reasons, coverage may have to be less than what corresponds to the defined scope of the index.

(5) “Reference population” refers to that specific population group for which the index has been constructed.

(6) “Weights” are the aggregate consumption expenditures on any set of goods and services expressed as a proportion of the total consumption expenditures on all goods and services within the scope of the index in the weight reference period. They are a set of numbers summing up to unity.

(7) “Price updating of weights” is a procedure that is used to bring the expenditure weights in line with the index or price reference period. The price-updated weights are calculated by multiplying the weights from the weight reference period by elementary indices measuring the price changes between weight reference and price reference period and rescaling to sum to unity.

(8) “Index reference period” is the period for which the value of the index is set at 100.

(9) “Price reference period” is the period whose prices are compared with the prices in the current period, the period whose prices appear in the denominators of the price relatives.

(10) The “weight reference period” is the period, usually a year, whose estimates of the volume of consumption and its components are used to calculate the weights.

(11) “Probability sampling” is the selection of a sample of units, such as outlets or products, in such a way that each unit in the universe has a known nonzero probability of selection.

(12) “Cutoff sampling” is a sampling procedure in which a predetermined threshold is established with all units in the relevant population at or above the threshold being eligible for inclusion in the sample and all units below the threshold being excluded. The threshold is usually specified with regard to the size of some relevant variable (such as some percentage of total sales), the largest sampling units being included and the rest excluded.

(13) “Quota sampling” is a nonprobability method where the population is divided into certain strata. For each stratum, the number (“quota”) of elements to be included in the sample is specified. The price collector simply “fills the quotas,” which means, in the case of outlet sampling, that the selection of the outlets is based on the judgment of the price collectors and the specified criteria.

(14) “Imputed expenditures” are the expenditures assigned to a product that has not been purchased, such as a product that has been produced by the household for its own consumption (including housing services produced by owner-occupiers) or a product received as payment in kind or as a free transfer from government or nonprofit institutions.

(15) “Imputed price” refers to the estimated price of a product whose price during a particular period has not been observed and is therefore missing. It is also the price assigned to a product for which the expenditures have been imputed, see (14).

(16) “Outlet” indicates a shop, market stall, service establishment, internet seller, or other place where goods and services are sold or provided to consumers for nonbusiness use.

(17) “Linking” means joining together two consecutive sequences of price observations, or price indices, that overlap in one or more periods, by rescaling one of them so that the value in the overlap period is the same in both sequences, thus combining them into a single continuous series.

(18) “Price” is defined as the value of one unit of a product, for which the quantities are perfectly homogeneous not only in a physical sense but also in respect of a number of other characteristics.

(19) “Pure price change” is that change in the price of a good or service which is not due to any change in its quality. When the quality does change, the pure price change is the price change remaining after eliminating the estimated contribution of the change in quality to the observed price change.

(20) “Quality adjustment” refers to the process of adjusting the observed prices of a product to remove the effect of any changes in the quality of that product over time so that pure price change may be identified.

(21) “Consumer substitution” occurs when, faced with changes in relative price, consumers buy more of the good that has become relatively cheaper and less of the good that has become relatively more expensive. It may occur between varieties of the same product or between different expenditure categories.

Annex 2 Quality-Adjustment Methods

Implicit Quality-Adjustment Methods

1. The “overlap” method assumes that the entire price difference at a common point in time between the disappearing product and its replacement is due to a difference in quality.

2. The “overall mean imputation” method first calculates the average price change for an aggregate without the disappearing product and its replacement, and then uses that rate of price change to impute a price change for the disappearing product. It assumes that the pure price difference between the disappearing product and its replacement is equal to the average price changes for continuing (nonmissing) products.

3. The “class mean imputation” method is a variant of the overall mean imputation method. The only difference is in the source of the imputed rate of price change to period t + 1 for the disappearing product. Rather than using the average index change for all the nonmissing products in the aggregate, the imputed rate of price change is estimated using only those price changes of the products that were judged essentially equivalent or were directly quality adjusted.

Explicit Quality-Adjustment Methods

4. The “expert’s adjustment” method relies on the judgment of one or more industry experts, commodity specialists, price statisticians or price collectors on the value of any quality difference between the old and replacement product. None, some, or all of the price difference may be attributed to the improved quality.

5. The “differences in production costs” approach relies on the information provided by the manufacturers on the production costs of new features of the replacements (new models), to which retail markups and associated indirect taxes are then added. This approach is most practicable in markets with a relatively small number of producers, with infrequent and predictable model updates. However, it should be used with caution as it is possible for new production techniques to reduce costs while simultaneously improving quality.

6. The “quantity adjustment” method is applicable to products for which the replacement product is of a different size to the previously available one. It should only be used if the differences in quantities do not have an impact on the quality of the good.

7. The “option cost” method adjusts the price of the replacements for the value of the new observable characteristics. An example of this is the addition of a feature that earlier has been a priced option as standard to a new automobile model.

8. A “hedonic” regression method estimates the price of a product as a function of the characteristics it possesses. The relationship between the prices and all relevant and observable price-determining characteristics is first estimated and then results are used in the estimation of the index.

Annex 3 Types of Errors

  • “Quality change error” is the error that can occur as a result of the index’s failure to make proper allowance for changes in the quality of goods and services.

  • “New goods error” is the failure to reflect either price changes in new products not yet sampled, or given a COLI objective, the welfare gain to consumers when those products appear.

  • “Outlet substitution error” can occur when consumers shift their purchases among outlets for the same product without proper reflection of this shift in the data collection for the index.

  • “New outlets error” is conceptually identical to new goods error. It arises because of the failure to reflect either price changes in new outlets not yet sampled, or the welfare gain to consumers when the new outlets appear.

  • “Upper-level substitution error” arises when the index does not reflect consumer substitution among the basic categories of consumption owing to the use of an inappropriate method for aggregating elementary aggregates in the construction of the overall index value. Only relevant to a COLI, although an equivalent (representativity error) may be defined from the perspective of the pure price index.

  • “Elementary index error” arises from the use of an inappropriate method for aggregating price quotations at the very lowest level of aggregation. The elementary index error can take two forms: formula error and lower-level substitution error. The index suffers from formula error if, as a result of the properties of the formula, the result produced is biased relative to what would have been the result if a pure price change could have been estimated. The index suffers from lower-level substitution error if it does not reflect consumer substitution among the products contained in the elementary aggregate.

  • “Selection error” arises when the sample of price observations is not fully representative of the intended population of outlets or products. The first four types of errors listed previously can be seen as special cases of this type of error.

Annex 4 Classification of Individual Consumption According to Purpose1

(BREAKDOWN OF INDIVIDUAL CONSUMPTION EXPENDITURE OF HOUSEHOLDS BY DIVISION AND GROUP)

01 Food and nonalcoholic beverages

  • 01.1 Food

  • 01.2 Nonalcoholic beverages

02 Alcoholic beverages, tobacco, and narcotics

  • 02.1 Alcoholic beverages

  • 02.2 Tobacco

  • 02.3 Narcotics

03 Clothing and footwear

  • 03.1 Clothing

  • 03.2 Footwear

04 Housing, water, electricity, gas, and other fuels

  • 04.1 Actual rentals for housing

  • 04.2 Imputed rentals for housing

  • 04.3 Maintenance and repair of the dwelling

  • 04.4 Water supply and miscellaneous services related to the dwelling

  • 04.5 Electricity, gas, and other fuels

05 Furnishings, household equipment, and routine household maintenance

  • 05.1 Furniture and furnishings, carpets, and other floor coverings

  • 05.2 Household textiles

  • 05.3 Household appliances

  • 05.4 Glassware, tableware, and household utensils

  • 05.5 Tools and equipment for house and garden

  • 05.6 Goods and services for routine household maintenance

06 Health

  • 06.1 Medical products, appliances, and equipment

  • 06.2 Outpatient services

  • 06.3 Hospital services

07 Transport

  • 07.1 Purchase of vehicles

  • 07.2 Operation of personal transport equipment

  • 07.3 Transport services

08 Communication

  • 08.1 Postal services

  • 08.2 Telephone and telefax equipment

  • 08.3 Telephone and telefax services

09 Recreation and Culture

  • 09.1 Audiovisual, photographic, and information processing equipment

  • 09.2 Other major durables for recreation and culture

  • 09.3 Other recreational products and equipment, gardens, and pets

  • 09.4 Recreational and cultural services

  • 09.5 Newspapers, books, and stationery

  • 09.6 Package holidays

10 Education

  • 10.1 Preprimary and primary education

  • 10.2 Secondary education

  • 10.3 Postsecondary nontertiary education

  • 10.4 Tertiary education

  • 10.5 Education not definable by level

11 Restaurants and hotels

  • 11.1 Catering services

  • 11.2 Accommodation services

12 Miscellaneous goods and services

  • 12.1 Personal care

  • 12.2 Prostitution

  • 12.3 Personal effects n.e.c.

  • 12.4 Social protection

  • 12.5 Insurance

  • 12.6 Financial services n.e.c.

  • 12.7 Other services n.e.c.

Appendix 5 Spatial Comparisons of Consumer Prices, Purchasing Power Parities, and the International Comparison Program

Introduction

This annex deals with the topic of comparing price levels across different areas or regions within a country, as well as across countries. Even though international price comparisons are required to handle differences in currencies in different countries, the index number problems involved in price comparisons across countries mirror those encountered in comparisons over time. There is a large body of literature on cross-country comparisons of prices and real income generated through the International Comparison Program (ICP).

The ICP is a worldwide statistical initiative led by the World Bank under the auspices of the United Nations Statistical Commission. The ICP estimates purchasing power parities (PPPs) of countries through a partnership with international, regional, and national agencies.

PPPs are price indices that serve both as currency convertors and spatial price deflators. PPPs convert different currencies to a common currency and, in the process of conversion, equalize their purchasing power by eliminating the differences in price levels between countries. In their simplest form, PPPs are price relatives that show the ratio of the prices in national currencies of the same good or service in different countries.

PPPs are used to generate the price and volume indices needed for economic research and policy analysis that involves intercountry comparisons of gross domestic product and its expenditure components. The volume indices can be used to compare the size of economies and their levels of material well-being, consumption, investment, government expenditure, and overall productivity. The price indices can be used to compare price levels, price structures, price convergence, and competitiveness. In addition, PPPs are employed for several administrative purposes.

The ICP was launched in the late 1960s as a joint venture of the United Nations Statistical Division and the International Comparisons Unit of the University of Pennsylvania. The first experimental comparison was conducted in 1970, covering 10 countries. Since then, several rounds of comparisons have been conducted covering a varying number of countries, combined with significant advancements in the PPP estimation methodology.

Recognizing the needs for more frequent and reliable PPP estimates, the United Nations Statistical Commission agreed, at its 47th Session in 2016, that the ICP should become a permanent element of the global statistical program, conducted more frequently with shorter intervals between successive rounds and further aligned with regular national statistical programs.

While not providing an exhaustive account of the related problems and relevant aggregation methods, this annex aims to achieve a degree of completeness in the coverage of the problem of consumer price comparisons in the Manual by adding the spatial and international dimensions to the temporal comparisons dealt with in various chapters. The annex also attempts to identify possible avenues for a closer integration between spatial and temporal comparisons of consumer prices.

The main objectives of the annex are: (1) to provide a brief summary of the index number problems encountered in the process of international and interarea price comparisons and to highlight the need for the development and use of specialized aggregation methods; (2) to describe selected aggregation methods used in deriving PPPs and spatial measures of price levels; (3) to examine the relationship between the ICP and PPPs, for cross-country comparisons, with the consumer price index (CPI); and (4) to explore the feasibility of integrating the ICP activities with the streamlined activities of national statistical offices for the compilation of the CPI.

The annex is also designed to provide an introduction for the CPI compilers in various national statistical offices to the issues and methods involved in spatial comparisons of consumer prices. The annex outlines some of the principal differences in the approaches to spatial comparisons. Countries embarking on interarea or regional consumer price comparisons, as well as those countries that may participate in the ICP in the near future, may find the contents of the annex useful.

Differences between Temporal and Spatial Comparisons

There are several major qualitative differences in the nature of price comparisons involved in the standard CPI comparisons over time and price comparisons over space involving regions or countries. These differences highlight the need for specialized methods for aggregating price data in deriving summary measures of price levels, as well as specific types of data requirements associated with cross-country and interarea comparisons.

The foremost difference is the absence of a natural ordering of price and quantity observations in the context of cross-country or interarea comparisons. The CPI framework and methods are devised to measure changes over time. Therefore, the price observations appear in a chronological order. The presence of a natural ordering over time of price observations makes it possible to examine the feasibility and relative merits of the fixed and chain index numbers. In contrast, in the context of constructing price comparisons across countries, or across regions within a country, it is impossible to arrive at any kind of natural ordering.

The multilateral nature of spatial comparisons is a distinguishing feature of price comparisons across regions and countries. When price levels of goods and services across different countries are compared, it is essential that such comparisons are undertaken for every pair of countries being considered. This multilateral nature of comparisons creates several problems. First, the number of comparisons (one for each pair) can be quite large, and presentation and use of such results may be quite unwieldy. For example, if a particular comparison exercise involves 100 countries, then it requires 100×99/2=4,950[nk=n!k!(nk)!], (where n is the number of countries and k = 2) separate binary comparisons involving distinct pairs of countries. Second, results from such a large tableau of binary comparisons require a degree of consistency. This requirement translates into the “transitivity” condition described in the following text.

The uses and applications of interarea price comparisons may differ significantly from general consumer price indices. The CPI is probably the most significant economic statistic produced in any country. It is not only used as a general measure of price changes over time, but often in assessing and calibrating monetary policy. Despite the conceptual similarities in price comparisons over time and across space, spatial price comparisons are useful in comparisons of standards of living and well-being in different regions in a country or across countries. Such comparisons are essential in assessing development and in ensuring more balanced growth in different regions. There is considerable demand for measures of CPI across different cities and different states and regions (rural versus urban) within countries. However, there are very few countries where interarea price level comparisons are readily available.

International comparisons of prices, in the form of PPPs from the ICP, are used by international organizations and individual researchers in assessing the growth and productivity performance of countries, and also in making meaningful comparisons of various national income aggregates across different countries. PPPs are also essential in assessing the nature and extent of global poverty and its distribution across countries and regions of the world.

In recognition of the major analytical differences between the standard CPI comparisons over time and spatial (between countries or between regions in a country) comparisons of consumer prices and PPPs, considerable research efforts have focused on the development of the data and methods necessary for spatial comparisons of prices. A brief summary of the results of this research is given in the following text.

Data Requirements for Spatial (Interarea) Comparisons

The basic data requirements for spatial comparisons are very similar to the data required for standard CPI calculation. The main components are the data on prices of a large range of products representative of the consumption baskets of households and information on weights associated with various product categories reflecting the importance attached to different products. Within the CPI, it is common practice to collect price quotations from different outlets scattered throughout the country. The selection of the outlets and areas from which prices are collected is based on complex multistage sampling designs. The expenditure weights are based on a classification of goods and services using a standard system such as the Classification of Individual Consumption According to Purpose or a similar national classification. The lowest level of product classification at which expenditure weights are available is used in identifying the elementary indices and higher-level indices at progressively higher levels of aggregation, leading ultimately to the total household expenditure level.

Spatial comparisons pose several problems with regard to identifying products that are to be priced from different areas, regions, or countries involved in a comparison exercise. This problem is less severe when areas with similar economic structures or homogeneous consumption patterns are being compared. However, when comparisons are made between two heterogeneous countries, say the United States and India, there will be major differences in the consumption baskets at the detailed item level, even though the expenditure categories may be identical. This problem is somewhat similar to the treatment of disappearing and new goods in the context of the CPI, but is more serious when cross-country comparisons are being attempted.

Quality mismatches are likely to be smaller in the case of temporal comparisons, but can be a serious problem when comparisons across countries are attempted. The ICP follows the principle of identity (that is, comparing like with like) in dealing with the problem of quality differences across countries. A comprehensive list of products with detailed product specifications is developed at the planning stages of any cross-country comparison exercise. These items are priced in different countries from various outlets distributed across the country, a procedure very similar to that used in the CPI. Development of the product list is, however, a difficult step, with the degree of dif-fculty depending upon the size and heterogeneity of the group of countries involved. The use of a product listing, based on the identity principle, can have serious implications for the representativeness of the product list of the consumption baskets in different countries. At the same time, the requirement of comparing like with like leads to multiple gaps in the price matrix, as many countries cannot price all the items on the list. A more detailed account of the problems and recommended solutions can be found in Measuring the Real Size of the World Economy (2013) and ICP Operational Guide (2013).

For purposes of making interarea comparisons of consumer prices, it is necessary to obtain expenditure data specific to each area or country included in the comparisons.

Thus, spatial comparisons of consumer prices pose specific problems because of the nonoverlapping nature of the consumption baskets, potential major differences in the quality of items priced in different regions and countries, and the difficulties to fill data gaps in expenditure patterns.

Aggregation Methods for Spatial Comparisons

This section briefly describes the types of aggregation methods that are commonly used in spatial comparisons of prices. Though most of these methods have been developed in the context of the ICP, and are equally valid for inter-area or regional comparisons, the following discussion uses countries as spatial entities. This section is further divided into three parts. The first deals with the notation and conceptual framework necessary to deal with multilateral spatial comparisons. The second describes the construction of elementary indices for aggregation of prices when no quantity or expenditure information is available. Finally, a small selection of index number methods used in spatial price comparisons is presented.

Notation and Conceptual Framework

Consider the case involving comparisons across M countries, and price and quantity data on N products. These products refer to goods and services that are priced in all the countries. If the products refer to items below the elementary level at which no quantity or expenditure share data are available, only the price data is used. At this stage, all the problems relating to nonoverlapping product lists are set aside so that the main focus is just on the aggregation issues. Let pj = [p1j, … pNj] and qj = [q1j, … qNj] represent the price and quantity vectors from country j (j = 1,2, …, M). All the prices are expressed in the respective national currency units. As in the case of the CPI computation, the problem is one of decomposing the differences in the value aggregates

V j = i = 1 N p i j q i j ( A 5.1 )

into measures of price and real expenditure components.

Since there are M sets of price and quantity vectors and, therefore, M(M – 1)/2 binary comparisons between all distinct pairs of countries, a simpler notation is used in this annex in the place of the notation generally used in the Manual. Let Ijk denote the price index number for country k with country j as the base. If j and k are, respectively, the United States and India, and if Ijk = 22.50, then the index is interpreted to mean that 22.50 Indian rupees have the same purchasing power as one US dollar for the goods and services covered in computing the index. Thus, the index can be interpreted as the PPP between the currencies of j and k. This interpretation is consistent with the meaning accorded to the CPI. Since currency denominations are involved here, a proper measure of relative price level differences can be obtained if the PPP is compared to the exchange rate prevailing at the time when comparisons are made. In the case of subnational comparisons, the PPPs would be the price level differences.

Because of the multilateral nature of spatial comparisons, when M countries are involved, it is necessary to provide comparisons between all pairs of countries. Thus, it becomes necessary to compute each and every entry in the following matrix of binary comparisons:

I = [ I 11 I 12 . I 1 M I 21 I 22 . I 2 M . . . . I M 1 I M 2 . I M M ] ( A 5.2 )

Several points concerning the matrix, I, are worth noting. First, the matrix can be large if the number of countries (or areas) involved is large. Second, the results recorded in the matrix need to be internally consistent. All the index number issues and various approaches discussed in the Manual apply directly to each binary comparison involving two countries. Diewert (1986, 1999b) provides a summary of the microeconomic theoretical and test approaches to crosscountry comparisons. Thus, it is possible to apply Fisher, Törnqvist, Walsh, or other index number formulae described in the Manual.

To ensure meaningful interpretation of the results from multilateral cross-country comparisons, the index number methods applied need to satisfy a number of basic requirements, only the most important of which are discussed in the following text. Diewert (2013) provides a complete list of these requirements.

Transitivity. An index number formula Ijk is said to satisfy the transitivity property if and only if for all choices of j,k and l (j,k, l = 1, 2, . . ., M), the index satisfies

I j k = I j l × I l k ( A 5.3 )

Equation A5.3 requires that the application of a formula to make a direct comparison, Ij,k, should result in the same numerical measure as an indirect comparison between j and k through a link country l. Note that the transitivity property ensures internal consistency of index numbers in the matrix given in equation A5.2. It guarantees that the PPP for two currencies, say A and B, is the same whether it is derived through a direct comparison of A and B or through an indirect comparison that compares A with C and C with B, which are then combined to provide an indirect PPP for A and B. This requirement arises mainly from the spatial nature of the comparisons where no natural ordering of the countries involved could be imposed without a value judgment. Most of the commonly used index number procedures do not satisfy this requirement.

Base invariance. An index number formula is said to be base invariant if a comparison between a given pair of countries (j,k) is invariant to the order in which the countries are listed. This implies that multilateral comparisons should be invariant to all possible permutations of the data set. For example, consider a set of transitive comparisons derived using a particular country (say the United States) as a base country: under this program, price comparison between any pair of countries, say A and B, is effected through the United States which serves as a link country. Therefore,

P P P A , B = P P P A , U S A × P P P U S A , B ( A 5.4 )

This program is inadmissible under the base invariance criterion since the choice of the base country clearly affects the PPP of currencies of countries A and B. Further, the United States is accorded a special status, in the form of a link country, in deriving transitive multilateral comparisons.

Characteristicity. This is a requirement outlined in Drechsler (1973). This property requires that any set of multilateral comparisons satisfying the transitivity property should retain the essential features of the binary comparisons constructed without the transitivity requirement. Since condition (A5.3) implies that a transitive comparison between a pair of countries j and k is necessarily influenced by the price and quantity data for all the other countries, the characteristicity property requires that distortions resulting from adherence to the transitivity property should be kept at a minimum. The Gini–Eltetö–Köves–Szulc (GEKS) method for multilateral comparisons, discussed in the following text, is specifically designed with the characheristicity in mind.

Additivity or matrix consistency. Another desirable property in spatial comparisons is additivity or matrix consistency. This property ensures that the additive nature of national accounts within a country, expressed in national currency units, is maintained within the international comparison framework. Basically, additivity means that for any country the real expenditures components should add up to the total real expenditures. Additivity would enable researchers to examine the structure of the real expenditures. However, additivity imposes certain theoretical restrictions and therefore is not always preferred as a property to be maintained in international comparisons. Indices such as the Geary–Kha-mis (GK) or Iklé–Dikhanov–Balk (IDB) maintain additivity. In intracountry comparisons, those indices seem less problematic as the price and expenditure structures vary much less within a country than between countries.

Index Number Methods for Spatial Comparisons

Spatial price comparisons, similar to temporal indices, use index number methods for aggregating price and quantity data at two different levels. The first is the basic heading level (the elementary aggregation). This is normally the lowest level of aggregation at which expenditure data and weights are available. The basic headings usually consist of a fairly homogeneous group of items that are priced in different outlets in the countries. The subsequent levels of aggregation lead to indices for higher expenditure categories, up to the level of total expenditures.

Aggregation at the Basic Heading Level (Elementary Index)

Two commonly used index number methods and their versions are described in the following text. These procedures explicitly allow for the possibility that price data may not be available for all items in the product list constructed for a given international comparison exercise. Such a situation occurs also in the case of temporal comparisons, though it is usually limited to either disappearing or new goods.

The Jevons–Gini–Eltetö–Köves–Szulc (Jevons–GEKS) Method. The original GEKS method proposed in Eltetö and Köves (1964) and Szulc (1964) is generally used in aggregating price data above the basic heading level. However, the GEKS procedure can be used as an elementary aggregator as well (that is, at the basic heading level). At this stage, binary comparisons have to be constructed using price relatives of those products for which prices are available in both countries, without applying expenditure weights. The Jevons–GEKS method uses the Jevons index as its basic element. The Jevons index can be described as follows. If S(j) and S(k) are the sets of products priced in countries j and k, respectively, and njk is the number of products that are priced in both countries, then the binary elementary index uses the following formula:

I j k = Π i S ( j ) S ( k ) [ p i k p i j ] 1 / n j k ( A 5.5 )

Obviously, these binary indices are not transitive, since each index is based on prices of a different set of products. The GEKS procedure is then applied to derive a transitive set of indices. The resulting multilateral index is given by

I j k E K S = Π = 1 M [ I j I k ] 1 / M ( A 5.6 )

The elementary index number formula in A5.5 is similar to the formula used in the construction of the CPI. The principal difference results from the fact there is a need for transitivity at all stages of aggregation. The properties of these indices are discussed in Chapter 7 of the publication Consumer Price Index Theory.

The Eurostat and the Organisation for Economic Cooperation and Development used a somewhat modified variant of the binary indices shown in equation A5.5, referred to as Jevons–GEKS*. Although this elementary index still does not use expenditure weights below the basic heading level, it incorporates information about importance of products in one or both of the countries. The procedure takes explicit account of those products which are “starred,” indicating that the item is important or representative in a given country. The Jevons–GEKS* method uses the same formula (A5.6), but the binary elementary index (A5.5) is replaced by

I j s = { i M ( s ) [ p i s p i j ] 1 n ( s ) i M ( j ) [ p i s p i j ] 1 n ( j ) } 1 2 ( A 5.7 )

where n(s) and n(j) are, respectively, the number of “starred” items in countries s and j; M(s) and M(j) are, respectively, the sets of products that are “starred” (considered representative) in countries s and j.

In theory, equation A5.7 can have an advantage over (A5.5) due to its considering “representativity” of the products priced in different countries. However, much will depend on how consistent the definition of representativity is across various countries and within basic headings (see more in a discussion on the country–product–representativity–dummy method in the following text).

Today the Eurostat–Organisation for Economic Co-operation and Development program uses a modification of the method, called Jevons–GEKS*(S), due to Sergeev (2003). The method uses an elementary binary index that has three components which are based on (1) items representative in country s and not in country j, (2) items representative in country j and not in country s, and (3) items representative in both countries. Then the binary elementary index is computed as a weighted geometric mean with the weights proportional to the number of items in different components, with double weight assigned for the third component based on items representative in both countries:

I j s = i M ( s * ) [ p i s p i j ] w 1 i M ( j * ) [ p i s p i j ] w 2 i M ( s , j ) [ p i s p i j ] w 3 ( A 5.7 a )

where M(s*) and M(j*) are the sets of priced products that are “starred” (considered representative) only in countries s and j, respectively, and not in other countries, and M(s,j) is the set of products that is representative in both countries s and j.

Finally, equation A5.6 is applied to achieve transitivity.

In both methods, the Jevons–GEKS* and Jevons– GEKS*(S), products that are unrepresentative in both countries do not influence the respective binary index. At the same time, both methods’ binary indices may be distorted because they rely on products that are representative in one country but not in the other. The Eurostat-OECD addresses this issue by endeavoring to equalize the number of representative items in each country.

The Country–Product–Dummy (CPD) Method. The CPD method was originally proposed by Summers (1973) as a tool to deal with missing price observations. The method is a simple statistical device that can be used in deriving the PPPs for a particular basic heading by simply regressing the logarithm of observed prices against a set of dummy variables, defined with respect to products and countries.

The CPD procedure can be written as

ln p c p = y c p = x c p β + ε c p ( A 5.8 )

where pcp is the price of product p in country c; Dcj and Dpi are country and product dummy variables; Np and Nc are the numbers of products and countries, respectively; and

x c p = [ D c 2 D c N c D p 1 D p 2 D p N p ] β = [ α 2 α N c γ 1 γ 2 γ N p ] T ( A 5.8 a )

In matrix notation, by stacking individual observations, this can be written as

y = X β + ε ( A 5.9 )

Note that the first country dummy is dropped from the system because matrix X is of rank (Np + Nc – 1). In fact, any variable can be dropped from the system; dropping the first country’s dummy simply makes it the base country.

The solution is given (under the conditions of independently and identically distributed random disturbances) by

β ̂ = ( X T X ) 1 X T y ( A 5.10 )

Once this regression equation is estimated, the PPP for the currency of country j with country 1 as base can be obtained by

P P P j = exp ( α j ) ( A 5.11 )

Then the desired index at the basic heading level is given by

I j k = P P P k P P P j . ( A 5.12 )

The Country–Product–Representativity–Dummy Method. The CPD model offers a number of generalizations that can explicitly account for a number of data-related problems. One of them was due to Cuthbert (1988), who suggested incorporating the representativity dummy variable into equation A5.8. The rationale was to introduce pseudoweights to account for higher sales of more typical items.

Matrix X becomes in this case:

x c p ' = [ D c 2 D c N c D p 1 D p N p R c p ] β ' = [ α 2 ' α N c ' γ 1 ' γ N p ' ρ ] T ( A 5.13 a ) y = X ' β ' + ε ( A 5.13 b )

where Rcp stands for representativity dummy and ρ is its respective regression coefficient.

However, using actual ICP data, it was found that the efficiency of the index depended significantly on the consistency of representativity definitions across countries (just as in the case of Jevons–GEKS* and Jevons–GEKS*(S)). This led to the random nature of the representativity coefficients in many cases, instead of strongly negative coefficients. This does not mean that the index is less efficient than the regular CPD, just that the representativity data quality has to be increased in order to achieve higher efficiency.

The Country–Product–Dummy Weighted Method. Diewert (2004a) suggested using product weights in formula (A5.10). Essentially, this variant uses weights 3 for representative and 1 for nonrepresentative products. The weights were somewhat arbitrary, and, again the index efficiency in this case will depend on the quality of representativity/importance data. Other CPD versions are possible too, for example, the country–product–representativity–dummy with weights, CPD with data frequency adjustments, and so on

It is worth noting that in the case of a full price matrix, both the CPD and Jevons–GEKS indices degenerate into the simple geometric mean of price relatives. An important consideration is the efficiency of the elementary indices. Dikhanov (2005) considered multiple Jevons–GEKS and CPD variants and using Monte Carlo simulations had two findings. One is that Jevons–GEKS variants were less stable and had higher failure rate, especially, when used as defined previously, without any modifications—the modifications that were employed to decrease failure rate could introduce various biases. The other is that the CPD variants used with weights/representativity were the most efficient indices.

Aggregation above the Basic Heading Level

This section presents a small selection of the range of aggregation methods used in the context of spatial comparisons. For a more comprehensive overview see, for example, Measuring the Real Size of the World Economy (World Bank 2013).

This level of aggregation in ICP (above the basic heading level) is similar to the stage where elementary indices are aggregated to derive the all-items CPI (above CPI items). It is important to note that as the basic heading level is the lowest level with expenditure weights; it corresponds to the CPI item level, the lowest level with expenditure weights in CPI. In addition, the multilateral nature of spatial comparisons necessitates a different approach to index numbers than in temporal comparisons.

A number of index number methods for aggregation above the basic heading level have been developed but, in the interest of brevity, only the principal methods used in the context of international comparisons are discussed here. The Geary–Khamis (GK), Iklé–Dikhanov–Balk (IDB), and GEKS methods were all used in the ICP, at one time or another. In addition, the weighted CPD and Minimum Spanning Tree approach are discussed as well.

The GEKS Method. The GEKS system is a simple method of generating transitive multilateral index numbers from a system of binary index numbers, with the property that the resulting multilateral indices deviate the least (according to a specific criterion) from the binary indices. Since the seminal paper by Drechsler (1973), it has been well recognized that (transitive) multilateral systems necessarily deviate from their binary counterparts and therefore result in a loss of “characteristicity.” The GEKS system is designed to minimize such loss of characteristicity. The original GEKS system uses the Fisher binary indices; however, any other binary index can be used in conjunction with the GEKS method of multilateralization. Thus, for any pair of countries j and k, if Fjk represents the Fisher binary index, then

G E K S j k = = 1 M [ F j . F k ] 1 / M ( A 5.14 )

provides the GEKS index.

There are several notable features of the GEKS technique. First, it is based on the premise that direct binary comparisons, derived using any chosen formula, provide the best comparison between pairs of countries. Second, even though the GEKS index in equation A5.11 is defined using the Fisher index, this approach can be applied in conjunction with any other index number formula. For example, the Fisher index in equation A5.11 may be replaced by another superlative index, such as the Törnqvist index (see Caves and others 1982b). Third, the GEKS index in equation A5.11 is the multilateral index that deviates the least from the matrix of nontransitive binary indices, when the deviations are measured using a logarithmic distance function. Finally, the GEKS index can be presented as a simple geometric mean of all (direct and indirect) comparisons between j and k through all possible link countries.

The simple unweighted nature of the GEKS index has attracted attention in recent years. Since different binary comparisons have different levels of reliability, measured using various criteria, it is necessary to reflect these differences in defining weighted GEKS index numbers. Rao and Timmer (2000), Rao and others (2000), and Rao (2001b) provide illustrations of how weighted GEKS indices can be generated in order to account for various data-related problems.

The Geary–Khamis (GK) Method. The GK method was originally proposed by Geary (1958) and subsequently developed by Khamis (1970, 1972, and 1984). The GK method has been the principal aggregation method in earlier ICP phases.

The GK method provides a way of calculating PPPs of currencies of different countries from the observed price and quantity data (applied at the basic heading level). The concept of PPP is applicable even when the currency unit is the same in several areas of a country. The GK method simultaneously determines the international average prices of different countries. Let Pi denote the international average price of ith product. The GK method is defined through the following system of interrelated equations, defined for each country j and each product i:

P i = j = 1 M p i j q i j / P P P j j = 1 M q i j a n d P P P j = i = 1 N p i j q i j i = 1 N P i q i j ( A 5.15 )

These simultaneous equations are then solved to yield numerical values of PPPs and Ps, after selecting one of the currencies as a numeraire. Once the PPPs are solved, the spatial price index numbers are simply defined as

I j k = P P P k P P P j ( A 5.16 )

One of the main reasons for the continued use of the GK method is “additivity.” Additivity requires that aggregates, such as real domestic product, derived by converting national aggregates using PPPs, should be equal to aggregates derived through valuation of quantities at international prices. Thus, additivity requires

i = 1 n p i j q i j / P P P j = i = 1 n P i q i j ( A 5.17 )

This requirement is satisfied automatically by the PPPs and Ps derived from the GK system defined in equation A5.12. The GK system is also useful in analyzing the structure of real gross domestic product and shares of different components across different countries. This system provides a framework within which internationally comparable national accounts could be constructed. When country outputs are valued at the international reference prices, values are additive across both countries and products. However, additive multilateral methods are not consistent with economic comparisons of utility across countries if the number of countries in the comparison is greater than two (see Diewert in Chapter 5 of Measuring the Size of the World Economy, 2013). In addition, larger countries will have a larger effect on the international prices than the smaller ones which in practice leads to an overestimation of poorer countries’ gross domestic product (the so-called Gerschenkron effect).

The Iklé–Dikhanov–Balk (IDB) Method. The IDB method was originally intimated by Iklé (1972) but in a very indirect way, so its properties remained unknown. It was subsequently further developed into its current form by Dikhanov (1994), and Balk (1996a) provided the first existence proof.

The IDB method is defined through the following system of interrelated equations, defined for each country j and each product i:

P i = [ j = 1 M P P P j / p i j × s i j j = 1 M s i j ] 1 a n d P P P j = i = 1 N p i j q i j i = 1 N P i q i j ( A 5.18 a )

where sij=pijqiji=1Npijqij

These equations are similar to the GK equations but now the weights involve country expenditure shares, and countries have more equal influence on forming the international prices. In effect, the index becomes more “democratic” in nature, not unlike the GEKS. Deaton and Heston (2010) show that the IDB-generated PPPs are much closer to the GEKS than the GK PPPs. Dikhanov (1994) shows that the GK becomes the IDB when all the countries have identical volumes.

Weighted Country–Product–Dummy (CPD) Method. It is possible to generalize the CPD method discussed previously in the context of aggregation at the basic heading level. Rao (1995) has generalized the CPD method by incorporating quantity and value data directly into the CPD method described in equation A5.8. The method minimizes a weighted residual sum of squares, with each observation weighted according to the expenditure share of the product in each country. The resulting equation becomes

w i j ln p i j = π 1 w i j D 1 + π 2 w i j D 2 + + π M w i j D M + η 1 w i j D 1 * + + η n w i j D n * + v i j ( A5 . 19 )

where wij=pijqiji=1Npijqij is the value share of the ith basic heading in the jth country.

Rao (1995) has shown that the weighted CPD method may be considered as a bridge between the GK approach to international comparisons and the standard stochastic approach to index numbers.

Minimum Spanning Tree Method for Making Multilateral Comparisons

This approach advocates spatial chaining of binary comparisons where links are identified using a procedure based on some measure of distance of binary comparisons involved. Recall that the standard GEKS treats each country’s associated set of Fisher indices as equally robust, and thus an averaging of the parities would be appropriate.

Using the graphical theoretical concept of minimum spanning trees, Hill (1999c, 1999d) proposed a method of deriving a system of transitive multilateral comparisons from a matrix of binary comparisons. The Hill approach is based on the fact that direct binary comparisons may not always be the best.

For any pair of countries j and k, Hill suggests a measure of distance (indicating the reliability of the binary comparison) using the Laspeyres–Paasche spread defined as

D ( j , k ) = | ln ( L ( j , k P ( j , k ) ) | ( A 5.20 )

where L(j,k) and P(j,k) are, respectively, binary Laspeyres and Paasche price index numbers. Note that the same distance function emerges if price index numbers are replaced by quantity index numbers. D(j,k) is equal to zero if the price structures or quantity structures are identical in countries, j and k. Thus, this distance function serves as an indicator of similarity of price and quantity structures in these countries.

Other distance (similarity) measures are possible. Diewert (2009), for example, suggests the weighted log quadratic measure, with weights being the country’s expenditure shares. Using a matrix of distances calculated for all pairs of countries, Hill (1999c, 1999d) suggests that a minimum spanning tree (MST) be extracted and used in constructing chained links between all pairs of countries. The MST has the property that a chained comparison between any pair of countries has the least distance, and therefore can be considered as the most reliable. It also has the property that the sum of the distances between all the links, in the MST, is the least when compared to all possible tree configurations. Once the MST is identified, a transitive comparison between a given pair of countries in a particular exercise is constructed using binary indices calculated using a chosen formula, such as the Fisher or Törnqvist index, and the links indicated in the MST. Since the MST provides a unique chain of links between any two countries, comparisons are uniquely defined. The spanning trees are, however, sensitive to the countries included, and the types of measures used in assessing the degree of reliability or comparability of any two countries. In addition, the path of bilateral links between countries generated by the method could be rather unstable and could change drastically from one comparison to next.

Fixity and Interregional Linking in International Comparisons

Any discussion on the methods presented previously, both at and above the basic heading level, would be incomplete, however, without addressing fixity and interregional linking. The need for fixity arises from the regional nature of actual ICP exercises, where individual ICP regions conduct their own comparisons which are later linked into the global comparison, as well as from the regions’ desire to preserve intraregional volume relatives within the global comparison. Thus, fixity ensures that regional results get replicated exactly within the global comparison. The fixity principle also allows for a certain independence of the regional computations, in both timing and methods.

The fixity principle necessitates interregional linking to bind the regional results, both at and above the basic heading level. This issue is discussed here only briefly. A fuller treatment is given in Chapters 4 and 6 of Measuring the Real Size of the World Economy (2013).

Obviously, only the items common across regions can be used in linking. To this end, every region was required to collect a certain number of common “core” items.

Thus, as the first step, the regional basic heading PPPs are estimated independently for each region. The basic principle of linking the regions at the basic heading level is to convert countries’ average item prices into regional currencies using the countries’ respective regional basic heading PPPs; then use one of the standard CPD models described previously to estimate interregional linking factors, treating each country’s average price as an observation in the CPD regression. Upon linking, the countries’ regional PPPs were multiplied by the interregional linking factors to arrive at the global linked set of basic heading PPPs with fixity.

The linking above the basic heading level is carried out using the country aggregation with redistribution method. In simple terms, the linking procedure consists of four steps: (1) at every level above basic heading, regional country volumes are estimated independently for each region; thus volume for country j within region r is denoted Vrj; (2) a full unrestricted GEKS is carried out with every country included in the global comparison, and country volumes within the global comparison are obtained; thus volume for country j in the global comparison is written as Vj; (3) each region’s total is estimated by adding up that region’s country volumes from the global comparison Vr=jC(r)Vj, where C(r) is the set of countries in region r; (4) these regional totals are redistributed among individual countries within the regions using the regional country volumes from step (1), the resulting country volumes in the global comparison with fixity are written as: Vworldj=Vr*Vrj/jC(r)Vrj.

Integration of the Consumer Price Index and International Comparison Program

This section provides a brief overview of potential synergies and benefits that could result from the integration of CPI and ICP activities. In addition, it introduces the concept of subnational PPPs and their relation to CPI and ICP.

Benefits from Consumer Price Index and International Comparison Program Integration

PPPs and CPIs serve different analytical purposes and address different dimensions of prices: spatial and temporal. Because of these conceptual differences, PPPs and CPIs have generally been constructed under different production infrastructures.

Despite these differences, harmonization and integration of ICP and CPI activities may provide countries with some potential benefits. One of the most obvious commonalities between CPIs and PPPs is that both require basic price data for household goods and services. This common feature opens the door to potential cost savings by countries from having a joint CPI-ICP data collection process. Savings in data collection are only one of many positive prospects from greater CPI and ICP integration. For instance, cost savings may also result from using a shared data curation and validation process, to name a few possibilities.

A brief compilation of potential benefits from CPI and ICP integration is provided in the following text. These benefits are seen from the point of view of a national statistical office already carrying out CPI-related work. While going through them, note that potential benefits do not exist in isolation, but result from the interaction, dependencies, or relationships they form with other elements that influence the overall quality of a statistical system. This leads to cost savings, accompanied by improvements in efficiency, among other areas.

  • Cost savings. Shared CPI-ICP data collection and processing operations may result in cost savings in areas such as price collection, data curation, quality assurance procedures, information and technology, and staff training.

  • Procedural and methodological spillovers. Knowledge of ICP methods can stimulate countries into adopting ICP concepts and practices for national purposes. For example, if analyzing price level differences within a country is of interest, the ICP may provide useful insights into the dynamics of spatial price comparisons. Similarly, ICP concepts such as the structured product description, which add rigor to item definitions by listing price-determining characteristics, may provide a valuable basis for designing more efficient price collection forms.

  • Scaling opportunities. Increased synergies between ICP and CPI product and outlet frames may allow countries to more easily extend their CPI’s geographical and outlet coverage. Since the ICP normally requires coverage which reflects the average level of prices in the entire country, ICP information on product availability and outlets may serve as building blocks for the design of a more extensive CPI. For instance, it may help expand the CPI to cover all urban areas in cases where the CPI only covers the capital city.

It is important to note that the extent to which countries will benefit from CPI and ICP integration will vary depending on national circumstances. It will also depend on the depth of the level of the integration process, with increased harmonization being a common precursor to integration. Nonetheless, the breadth and depth of the potential benefits of bringing CPI and ICP further together are even greater in the current context of a permanent and more frequent ICP.

Subnational PPPs

Subnational PPPs are PPPs compiled within a country. They are similar to ICP PPPs in that they both compare price levels between geographical areas. In the case of subnational PPPs, comparability over time is an occasional feature. The link between CPI and ICP is perhaps most prominent and well established within the framework of subnational PPPs. The general approach to constructing subnational PPPs can be summarized in three steps:

  • (1) Organizing the required price and expenditure data

  • (2) Determining overlapping items across geographical regions

  • (3) Estimating subnational PPPs through interregional aggregation

Because steps (1) and (2) generally present the biggest challenges, they will be the focus of interest. Step (3) on estimation involves extending the aggregation procedures for international spatial comparisons (presented earlier) to a subnational setting, so it presents no additional difficulties. The aggregation problem becomes more intractable when there is a need to account for the temporal dimension. This occurs when a set of subnational PPPs compares not only price differences across geographical regions of the same country, but also over time. This space–time analysis requires a temporally consistent spatial index for aggregation, which can be achieved, for example, by treating each region in each time period under consideration as a separate entity in standard multilateral aggregation (Dikhanov and others 2011). Thus estimated indices would provide regional PPPs already linked over time and space. Other approaches are possible, for example, by aggregating regions in each time period independently, and then linking each time period’s total using national price measures such as CPI. This two-stage approach to producing time and space consistent estimates would be equivalent to applying fixity not unlike the approach in the current ICP where different regions are linked without changes to their respective regional results.

Constructing subnational PPPs requires price and expenditure data. Prices are required for a set of goods and services that are comparable across the geographical areas of the country being studied. Expenditures are needed at the product group level and disaggregated by geographic location.

Expenditure values can be sourced from representative national household budget surveys, or from the country’s regional economic accounts. Since regional accounts are uncommon, expenditure values are generally sourced from the most recent nationally representative household budget survey. Price data, in turn, may be sourced from the CPI collected prices, ICP collected prices, or from specially designed intracountry regional price surveys. The most attractive would be to utilize CPI price information, since this option typically requires no additional price data collection.

The challenge of compiling subnational PPPs is in obtaining price data at the level of disaggregation and detail required. Price data for subnational PPPs require obtaining price observations for identical item specifications (varieties) across geographical regions. The idea is to follow the ICP principle of comparing like with like. It is where ICP concepts come into play as a means to add rigor and facilitate the subnational PPP approach. Concepts such as structured product descriptions, for defining item characteristics, or the “core items” approach, for ensuring the pricing of common items across regions, help ensure that the required item variety overlap exists across geographical regions. In this sense, ICP concepts help improve the consistency of the subnational PPP procedure.

Because subnational PPPs have multiple uses at the country level, many countries, especially large ones, have expressed interest in them. Indeed, subnational PPPs can serve as inputs for welfare studies that compare well-being across geographical regions within a country, or in fiscal studies of public transfers between a country’s geographical regions. Subnational PPPs may also be used for regional cost of living adjustments when determining wages of public officials working in different locations across a given country.

To meet the growing demand for information on this topic, research on subnational PPPs will also be carried out under the umbrella of the ICP Research Agenda. The task force working on CPI-ICP integration will be studying sub-national PPPs in detail and will formulate guidelines on the use of CPI or ICP products list and prices to compute sub-national PPPs.

Appendix 6 Some Basic Index Number Formulas and Terminology

1. Throughout this appendix, the sums are understood to be running over all varieties n.

A basket price index is an index of the form

Σ p n t q n Σ p n 0 q n ( A 6.1 )

which compares the prices of period t with those of (an earlier) price reference period 0, using a certain specified quantity basket. The basket does not have to consist of the actual quantities in any particular period. This general type of index is called a Lowe price index after the index number pioneer who first proposed this general type of index. The family of Lowe indices includes some well-known indices as special cases:

  • When qn=qn0, one gets the Laspeyres index.

  • When qn=qnt, one gets the Paasche index.

  • When qn=(qn0+qn1)/2, one gets the Marshall–Edge-worth index.

  • When qn=(qn0qnt)1/2, one gets the Walsh index. In practice, national statistical offices frequently work with a Lowe index in which qn=qnb, where b denotes some weight reference period that is typically prior to 0.

2. A useful feature of a Lowe index for period t relative to period 0 is that it can be decomposed, or factored, into the product of two or more indices of the same type: for instance, as the product of an index for period t – 1 relative to period 0 and an index for period t relative to period t – 1. Formally,

Σ p n t q n Σ p n 0 q n = Σ p n t 1 q n Σ p n 0 q n Σ p n t q n Σ p n t 1 q n ( A 6.2 )

In particular, when qn=qn0, expression (2) turns into

Σ p n t q n 0 Σ p n 0 q n 0 = Σ p n t 1 q n 0 Σ p n 0 q n 0 Σ p n t q n 0 Σ p n t 1 q n 0 ( A 6.3 )

The left-hand side of expression (3) is a direct Laspeyres index. Note that only the first of the indices that make up the right-hand side is itself a Laspeyres index, the second being a Lowe index for period t relative to period t – 1 that uses the quantity basket of period 0 (not t – 1). Some national statistical offices describe the index on the right-hand side of expression (3) as a modified Laspeyres index.

3. In a time-series context, say when t runs from 1 to T, the series

Σ p n 1 q n Σ p n 0 q n , Σ p n 2 q n Σ p n 0 q n , ... , Σ p n T q n Σ p n 0 q n ( A 6.4 )

is termed a series of fixed-basket price indices. In particular, when qn=qn0, a series of Laspeyres indices are found.

4. At period T, one could change to a new quantity basket q′ and calculate from this period onward:

Σ p n T + 1 q n ' Σ p n T q n ' , Σ p n T + 2 q n ' Σ p n T q n ' , Σ p n T + 3 q n ' Σ p n T q n ' ( A 6.5 )

To relate the prices of periods T + 1, T + 2, T + 3, … to those of period 0, chain linking can be used to transform the series (5) into a series of the form:

Σ p n T q n Σ p n 0 q n Σ p n T + 1 q n ' Σ p n T q n ' , Σ p n T q n Σ p n 0 q n Σ p n T + 2 q n ' Σ p n T q n ' , Σ p n T q n Σ p n T + 3 q n ' Σ p n 0 q n Σ p n T q n , ... ( A 6.6 )

This could be termed a series of chain-linked fixed-basket price indices. In particular, when qn=qn0andqn=qnT, a series of chain-linked Laspeyres indices are found. Since the basket is changed at period T, the adjective fixed applies literally only over a certain number of time intervals. The basket is fixed from period 1 to period T and is again fixed from period T + 1 onward. When the time intervals during which the basket is kept fixed are of the same length, such as one, two, or five years, this feature can be made explicit by describing the index as an annual, biannual, or five-yearly chain-linked fixed-basket price index.

5. A weighted arithmetic-average price index (so-called to distinguish it from a geometric or other kind of average) is an index of the form:

Σ w n ( p n t / p n 0 ) ( A 6.7 )

which compares the prices of period t with those of period 0, using a certain set of expenditure weights adding up to 1. In particular, when the weights are the period b value shares

w n = s n b p n b q n b / Σ p n b q n b ( A 6.8 )

the Young index is obtained.

Note that any basket price index (1) can be expressed in the form (7), since

Σ p n t q n Σ p n 0 q n = Σ p n 0 q n p n t Σ p n 0 q n p n 0 ( A 6.9 )

When the weights are the period 0 value shares,

w n = s n 0 p n 0 q n 0 / Σ p n 0 q n 0 ( A 6.10 )

expression (7) turns into the Laspeyres index. When

w n = p n 0 q n t / Σ p n 0 q n t ( A 6.11 )

that is, hybrid period (0, t) value shares, one can get the Paasche index.

One could also think of setting

w n = s n b ( p n 0 / p n b ) / Σ s n b ( p n 0 / p n b ) = p n 0 q n b / Σ p n 0 q n b ( A 6.12 )

that is, price-updated period b value shares.

Note that hybrid value shares, such as given by expressions (11) or (12), are not observable but must be constructed.

6. In a time-series context, when t runs from 1 to T, the series

Σ w n ( p n 1 / p n 0 ) , Σ w n ( p n 2 / P n 0 ) , , Σ w n ( p n T / p n 0 ) ( A 6.13 )

is termed a series of fixed-weighted arithmetic-average price indices. In particular, when the weights are equal to the period 0 expenditure shares, a series of Laspeyres indices are found, and when the weights are equal to the price-updated period b expenditure shares, a series of Lowe indices are found in which the quantities in the basket are those of period b.

7. In period T, one could change to a new set of weights w', and calculate from this period onward

Σ w n ' ( p n T + 1 / p n T ) , Σ w n ' ( p n T + 2 / p n T ) , ( A6 .  14 ) Σ w n ' ( p n T + 3 / p n T ) , ( A 6.14 )

or, using chain linking to relate the prices of periods

T + 1,T + 2,T + 3,... to those of period 0,

app10eq15

This could be termed a series of chain-linked fixed-weighted arithmetic-average price indices. In particular, when wn=sn0andwn'=snT, a series of chain-linked Laspeyres indices are found. When wn=sn0andwn'=snT and wn=snb(pn0/pnb)/Σsnb(pn0/pnb)andwn'=snb'(pnT/pnb')/Σsnb'(pnT/pnb') for some later period b, a series of chain-linked Lowe indices are found.

8. Again, since the weights are changed at period T, the adjective fixed applies literally only over a certain number of time intervals. The weights are fixed from period 1 to period T and are again fixed from period T + 1 onward. When the time intervals during which the weights are kept fixed are of the same length, this feature can be made explicit by adding a temporal adjective, such as annual, biannual, or five-yearly.

Appendix 7 Consumer Price Index Research Agenda

The consumer price index (CPI) research agenda lists topics where more work and research are needed to develop guidance and good practices for CPI compilation and meeting existing and emerging user needs.

The research agenda includes conceptual and methodological issues as well as practical measurement and implementation challenges. Different concepts and methods may be applied when developing the CPI, including decisions on index coverage, incorporating different goods and services, and measuring their price development over time. There is a significant need for analytical work and sharing of practical experiences to define and develop best practices for those compilation areas where there is no consensus on which method should be recommended. For example, there is a need to develop clear guidance on the methods used to make quality adjustments and how to use scanner data to compile the CPI.

Countries face ongoing measurement and implementation challenges. These are associated with practical problems implementing best practices due to a lack of data sources, inappropriate methods, or resource constraints. The emerging and rapidly evolving technology and the availability of new electronic data sources such as scanner data and web data also pose particular challenges to countries.

The CPI research topics are listed in the following section grouped under data sources, expenditure weights, index compilation methods, services, and synergies between CPIs, purchasing power parities (PPPs), and the national accounts. The organization of the topics does not reflect their importance. Many of the CPI research topics are linked to the three priority areas of work of the research agenda of the System of National Accounts (SNA): digitalization, economic well-being and sustainability, and globalization. These provide major challenges to official statistics, including the CPI, and are therefore listed at the end of the CPI research agenda, highlighting possible challenges involved for the CPI.

Countries, organizations, and researchers are encouraged to contribute to developing further guidance by undertaking work on the research topics and sharing experiences and good practices in these areas. The research topics also aim to guide future work of the Expert Group on Consumer Price Indices, jointly organized by the United Nations Economic Commission for Europe and the International Labour Organization and the Ottawa Group on Price Indices. The Inter-secretariat Working Group on Price Statistics1 has agreed to take the lead to ensure these issues are addressed.

Consumer Price Index Research Topics

Data Sources

Scanner Data

Scanner data may lead to more and better official price statistics, efficiency gains, and reduced response burden. Scanner data can complement and, in some instances, replace traditional approaches to collecting data for compiling the CPI. The use of scanner data challenges traditional interpretations and applications of concepts and raises both methodological and practical issues related to CPI production. Areas where more work is needed include: improving calculation methods for price indices based on scanner data; combining scanner data and data obtained from traditional methods; aggregating scanner data into higher-level indices; using scanner data for sampling purposes and estimating weights; classifying scanner data; dealing with quality changes (for example, implicit versus explicit quality adjustments); clarifying the treatment of seasonal products; and comparing price indices based on scanner data with price indices based on traditional sources. A growing number of national statistical offices (NSOs) have implemented scanner data in the routine production of the CPI, and the practical experience gained can be used to assist those NSOs who want to begin using scanner data. Practical experience can be shared on assessing the quality of scanner data, information technology and software issues, costs and benefits of using scanner data, and organizational and legal issues (such as access to data, or cooperation with scanner data providers). Research and testing are required on expanding the use of scanner data to include other goods, such as electronics and other items with high model turnover, and services. The development of methodologies and frameworks around scanner data is needed, for instance, to ensure consistency in coverage or in the treatment of replacements. There is also no generally agreed quality assurance framework developed, particularly for scanner data. Scanner data offer opportunities to both countries with developed statistical systems and countries with less developed statistical systems.

Web Prices

Internet purchases continue to grow in importance. Traditional outlets have established an online presence, and there are a growing number of internet-based outlets. There is a need to expand price collection and the outlet sample to include these new types of outlets in the CPI. First, for those outlets that have both an online and physical presence, there is a need to determine whether the prices charged and the price changes are the same or different. Second, there is a need to identify and sample the web-based outlets and the goods and services available. Weights consistent with the scope of the CPI need to be estimated for the web-based outlets. A particular important issue emerges when products from physical outlets are replaced by products purchased on the internet. In such cases, there is a need to decide if price differences should be treated as genuine price changes, and included in the CPI, or as a change in quality, and hence not included as price changes in the CPI. Experiences with the collection of data from internet-based outlets should be shared to help develop guidance.

Issues to be addressed when collecting prices on the web include calculation formulas for the CPI; analysis of the performance over time of price indices using prices from the internet and comparing with indices based on traditional sources; maintenance of the sample; treatment of replacements and quality changes; classification of the data; and combination with other data sources used in the CPI. There have been discussions around using and weighting various data sources. Obtaining expenditure weights for web-based prices continues to be a challenge, and there is no obvious way of obtaining this information. More research and practical experience in this area would be useful.

Web Scraping

Web scraping has huge potential for CPI compilation with regard to real-time access to a large amount of information, but also raises technical and potential legal issues and challenges. The drivers for the change toward web scraping include competition from other providers of alternative measures of price changes, the possibility of producing timelier and more frequent CPIs, more efficient production, and reduction of costs. There is a need for exchanging software experiences associated with web scraping and other methods for collecting or harvesting data. While there are advantages to web scraping, it also poses a number of issues that NSOs should be aware of, including the practical and legal issues concerning access to internet price data; how to ensure good cooperation with the owners of these data; and vulnerability, including becoming too dependent on one or a few owners of data and ways to deal with this and reduce possible risks. Countries may develop in-house software or buy this from a provider of software for web scraping. Both ways have their advantages and disadvantages that countries must consider.

Administrative Data

In addition to scanner data and web prices, future work on data sources should also address the use of administrative data sources. Depending on national circumstances, data on different goods and services may be available from administrative sources, for example in the areas of transport, housing, social protection, health, and education. Sharing of experiences and good practices will be helpful to further investigate the potentials of administrative data for compilation of the CPI.

Credit Card and Bank Data

As economies move away from cash transactions, it may be possible in the future to access household transaction records from banks, credit card companies, or providers of payment apps for mobile telephones (often referred to as mobile money). For this information to be useful for statistical purposes, each transaction would need to have an identifying product code associated with it. At present, only rough descriptions of the purchases are available, but this more limited information would still be useful to construct household expenditure data by major category of expenditure. While the use of credit card and other payment information involves issues concerning access to the data and confidentiality, this is a promising future source for household data on purchases.

Expenditure Weights

Plutocratic versus Democratic Weighting

Some NSOs have initiated projects to produce democratic indices. Other NSOs have attempted to compare the evolution of prices as they affect the average household and the average consumption. More clarity regarding the conceptual basis of such an index and calculation methods, but also interpretation and use of democratic indices, is needed.

Price Updating of Expenditure Weights

It is left to the NSO to decide whether to price update the expenditure weights. Since price updating may have a significant influence on the overall CPI this may negatively affect the international comparability of CPIs. It would be useful to discuss empirical studies that assess the magnitude of the effect of price updating and to identify whether clearer guidance could be developed.

Index Compilation

Calculating Elementary Price Indices

The expenditure weights of the elementary aggregate and the elementary price indices are the building blocks of the CPI. In the absence of weighting information, most countries compile the elementary price indices as unweighted averages of the individual prices (or price ratios) that belong to the elementary aggregate. However, with the growing availability of data sources, it may be possible to obtain information that can be used when aggregating individual price observations into elementary price indices. Weighting information may be derived from a variety of sources and may be used for groups of observations. For example, weights may be available for particular product groups within an elementary index, for certain outlets or outlet chains, or for individual observations. Applying such detailed weights has the potential to improve the statistical quality of the elementary price indices. It would be useful to share practical experiences on applying weights for the calculation of elementary indices, including on data sources and index calculation formulas.

Quality Adjustment

Quality adjustment is a cross-cutting issue that continues to pose challenges. Quality-adjustment issues have been noted previously, but there is a general need to provide better guidance on the treatment of quality changes. In particular, NSOs continue to struggle with measuring quality changes for clothing, cars, telecommunication equipment, multipurpose information technology devices, computers, and, in general, products with high churn. Sharing of practical experiences implementing methods and best practices is needed.

Seasonal Products

The treatment of seasonal products continues to confound compilers. There is a need for research and discussion to improve how seasonal items are treated in the CPI. It may also be useful to further discuss and compare different versions of fixed weights and variable weights approaches with the objective to develop clearer guidelines on the treatment of seasonal products.

The Use of Target Price Indices for the Consumer Price Index

It is useful to have a measurable target index for the CPI. The target index can be used as guidance for deciding calculation methods and practices for the regular CPI and for measuring potential bias. Empirical research can address issues including identifying potential target indices (for example, Walsh, Fisher, Törnqvist, or Constant Elasticity of Substitution [CES]) and how to apply these formulas in practice.

Formula for Calculating Higher-Level Price Indices

Arithmetic aggregation is used by almost all countries for calculation of higher-level price indices. Is this the best solution? What are the alternatives, with regard to geometric aggregation or aggregation by other types of averages or by use of indices that apply explicit estimates of substitution elasticities, such as the CES/Lloyd–Moulton price index?

The Use of Long-Term and Short-Term Links

The long-term/short-term link approach has been used in Sweden for many years and has now also been adopted by the United States. This method facilitates calculating the long-term links of the CPI by the use of superlative index number formulas. The use of long-term and short-term links was mentioned in the paper Estimating the Benefits and Costs of New and Disappearing Products (Diewert and Feenstra 2017)2 as the best way to get around the problem of dated weighting information. A growing number of countries will begin to explore this approach. Research, discussion, and practical experiences can be shared to identify the advantages and disadvantages of this method.

Retrospective Calculations of Superlative Price Indices

Retrospective calculations of superlative price indices are very useful for analytical purposes and to serve as a benchmark to assess the quality of the CPI and quantify potential bias. A limited number of NSOs have begun to compile superlative price indices. A sharing of experience can be used to develop best practices.

Consumer Price Indices for Different Groups and Geographic Areas

CPIs for different population groups or geographic areas may be required to meet specific user needs, for instance, indices used for compensation purposes for specific population groups (for example, wage earners in urban areas, receivers of retirement benefits, and so on) or for other political or analytical purposes. Since such indices may be produced as part of the regular CPI, this would increase the efficiency of the resources used to produce CPIs. Issues in the compilation of CPIs for specific income and population groups and geographic areas include sources and methods for developing weights, sample of outlets and items/varieties collecting prices, or defining the scope of the index. Discussions should also address communication and dissemination issues and user relations: How to identify and meet user needs, and how to deal with reactions from users?

Classification of Individual Consumption According to Purpose (COICOP) 2018

The update of COICOP has significant implications for compilers. Guidance on how to proceed with implementing the COICOP 2018 while preserving a historic time series of data would be helpful.

Uncertainty Measures

It is important to inform users about the accuracy and the reliability of a CPI and to guide CPI compilers in allocating resources for CPI compilation in the most efficient way. Often complex and nonprobability sampling programs are used to obtain prices from multiple data sources. In such a context, there is no generally agreed approach for estimating sampling errors. Further studies and practical approaches to measure uncertainty and to assess errors in a CPI are therefore needed.

Services

Measuring Services in the Consumer Price Index

Defining and pricing services continue to create challenges for CPI compilers. Additional research and sharing of practical experiences on how to define and price various services are needed to better identify best practices and develop guidance. Key issues include how to identify suitable units of services that can be priced over time, use of input or output measures (for example, using the hourly salary of the service provider or following the prices of a basket of representative services provided), and how to adjust for changes in the quality of services. Digital platform services also have grown significantly and raise questions on how these should be incorporated into the CPI. Timeliness is also an issue. Digital platform services have emerged quickly and often NSOs incorporate these services into the CPI with a considerable delay. The treatment of telecommunication services in the CPI continues to create issues for compilers. All these issues raise user concerns that the CPI becomes less representative and reliable. Where relevant, work on services should be coordinated with the Voorburg Group on Service Statistics.

Insurance and Financial Services

Insurance and financial services continue to pose measurement issues for the CPI. With the update of the Classification of Individual Consumption According to Purpose (COICOP) to the 2018 version (COICOP 2018), a separate division (Division 12) was created for insurance and financial services. The net versus gross approaches have not been fully reconciled. There are also problems of choosing appropriate deflators for the payment of premiums. More discussion and research are needed to guide compilers on the appropriate measurement of these services.

Owner-Occupied Housing (OOH)

The measurement of OOH and its inclusion in the CPI continues to present a major challenge that requires discussion to formulate clearer guidance. The inclusion of OOH, representing a large share of household consumption, also involves conceptual and measurement issues. Country-specific circumstances can create problems with different approaches for the measurement of OOH (for example, small and concentrated rental markets). Informal housing is another issue. Further empirical work representing a wide range of countries with different housing market types and access to different data sources would be very beneficial.

Synergies Between Consumer Price Indices, Purchasing Power Parities (PPPs), and National Accounts

CPIs and PPPs serve different purposes. CPIs measure price changes over time, generally month to month, primarily at a national level. PPPs, on the other hand, measure price differences across space, generally countries, at a given point in time. The temporal and spatial focus of CPIs and PPPs has resulted in different production infrastructures for the two indices. However, there are important synergies to be captured through the integration of data collection and other processing activities, especially given the implementation of the rolling survey approach in the International Comparison Programme. Both CPIs and PPPs require basic price data for final consumption goods and services, so economies of scale may be realized through a joint data collection process, as well as common data processing and quality assurance procedures. Examples of relevant topics include but are not limited to: country experiences with establishing synergies between PPP and CPI data collection activities; harmonization of classification programs for PPPs and CPIs; establishing overlap in PPP and CPI product lists; establishing common data processing and quality assurance processes; and applications in subnational price comparisons.

Moreover, CPI compilers, PPP compilers, and national accountants often face similar challenges when it comes to distinguishing pure price differences from differences in quantity and quality. These problems have been exacerbated by recent developments related to the digitalization of our economies, such as the rapid evolution in the design of new products, the combination of goods and services, new business models, and changes from high street shopping to online purchases. It is important for CPI compilers, PPP compilers, and national accountants to join forces and develop consistent methodologies on all these aspects.

Links to the SNA Research Agenda

On a broader level, the CPI research topics are linked to the SNA research agenda, which includes three priority areas of work: digitalization, well-being and sustainability, and globalization. These are briefly described in the following text, and possible challenges involved for the CPI are mentioned.

Digitalization

Digitalization influences the way households can acquire and consume goods and services. Digital goods or services may replace existing ones or constitute new goods and services that were not available earlier. Digitalization, therefore, raises challenges on how to identify and incorporate digital goods or services in the CPI and how to price such goods or services over time. The Organisation for Economic Co-operation and Development Statistics Working Paper, “Measuring Consumer Inflation in a Digital Economy” (Reinsdorf and Schreyer 2019),3 discusses in detail the problems in measuring the welfare effects of the digital economy, including the effects of services provided for free (or at least without any direct payment) on the internet. According to this working paper, there is a significant need to identify how CPIs can better reflect and incorporate digital goods and services, and work is needed to clarify the conceptual issues and develop methods that better measure the digital economy in the CPI. These issues include, but are not limited to, defining and identifying the goods and services, including different types of internet purchases, services for free, and shared economy services.

Well-Being and Sustainability

Measures of well-being attract much interest from policymakers, media, and the public. Ongoing research has focused on how time allocation information is needed to better measure household welfare change (Stiglitz and others, Report on the Measurement of Economic Performance and Social Progress, 2009).4 As described previously, the Reinsdorf and Schreyer working paper not only focuses on the welfare effects of the digital economy but also outlines key problems in using the CPI in measuring economic well-being in general. The paper identifies three reasons why the CPI will overestimate the cost of living and hence underestimate progress in real welfare: (1) insufficient adjustment for quality changes; (2) delayed inclusion of truly new products; and (3) disregarding the appearance and use of free products. Solving these issues involves addressing both conceptual and practical measurement issues. In a cost of living index context, the theoretically correct way of including truly new products and products offered for free would be the use of estimated “reservation” or “shadow” prices. This can be done in theory and in research studies. However, for the regular production of the monthly CPI, this is usually not feasible and other approaches must be implemented. According to Reinsdorf and Schreyer, the welfare effects would be difficult to measure, and established measures of gross domestic product and CPI should not be extended to include estimates of welfare effects. The authors conclude that if the aim is to measure welfare, it would be better to develop special measures for this purpose. The issue of a CPI for measuring economic well-being is not restricted to the effects of digitalization, but also includes further discussion on the coverage of the CPI and the treatment of different types of goods and services provided for free, potentially including public goods and services such as education, health, safety, or parks. The issue relates to the discussion of cost of goods indices versus cost of living indices, and conditional versus unconditional cost of living indices, where additional experiences and guidance would be useful. It may be useful to invite experts from other areas of official statistics to discuss measuring welfare and economic well-being.

Globalization

In the discussions about the problems in measuring globalization, the issue of having suitable price indices (producer price indices, export and import price indices, or CPIs) for the deflation of international flows of goods and services is often mentioned as a major challenge. Work could include conceptual clarifications as well as practical studies and development of guidelines on measurement. There will be a need to coordinate and align with the SNA and the Balance of Payments standards, for instance on how to classify different types of internet purchases as goods or services.

1

Eurostat. 2018. Harmonised Index of Consumer Prices (HICP) Methodological Manual, 2018 Edition. Luxembourg: European Commission. https://ec.europa.eu/eurostat/en/web/products-manuals-and-guidelines/-/KS-GQ-17-015.

1

Note: ND, SD, D, and S denote nondurable goods, semidurable goods, durable goods, and services, respectively.

1

As of this draft, COICOP 2018 has not yet been finalized. While only minor edits are expected, additional changes could be identified.

1

All annexes referred to in the footnotes are the annexes to the resolution.

2

See Annex 1.

3

See Annex 4.

4

See Annex 1.

5

See Annex 2.

6

See Annex 2.

7

See Annex 1.

8

See Annex 2.

9

See Annex 3.

10

See Annex 4.

11

United Nations Economic and Social Council (1994).

12

Sixteenth International Conference of Labour Statisticians (1998).

13

International Labour Organization, International Monetary Fund, Organisation for Economic Co-operation and Development, Eurostat, UN Economic Commission for Europe, and World Bank (2004).

1

This definition differs from the one adopted by the Fourteenth ICLS (1987).

1

This definition differs from the one adopted by the Fourteenth ICLS (1987).

1

The Intersecretariat Working Group on Price Statistics works to develop international standards and recommendations in price statistics, document best practice guidelines, and support their implementation. The member organizations of the Intersecretariat Working Group on Price Statistics are the Statistical Office of the European Union (Eurostat), the International Labour Organization, the International Monetary Fund, the Organisation for Economic Co-operation and Development, the United Nations Economic Commission for Europe, and the World Bank.

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Index

A

  • abbreviations xvii–xviii

  • access by the public 331

  • acquisition

    • definition 435

    • and uses 35–36

  • acquisition approach 3

    • housing 251–253

    • measuring owner-occupied housing 253–254

    • property insurance services 286

  • acronyms xvii–xviii

  • additivity 446

  • administrative data

    • research 456

    • sources 58–59

  • advertised price, unavoidable costs not part of 81

  • advisory committees 333

  • aggregation, consistency in 182–183

  • agriculture producer price index (APPI) 51

  • allocations, sampling 74–75

  • arithmetic average 21

  • audit report template 323

  • audit schedule, pro forma for 321

  • audits of production processes 312–314

    • audit report 313

    • longer-term annual reviews 314

    • monitoring performance 314

    • objectives of 313

    • overview 312

    • procedures and techniques 313

    • responsibilities of audit members 312–313

    • review systems 313–314

    • risk assessment 313

    • role of audit team 312–313

    • short-term monthly reviews 314

  • automated data checking 109–111

B

  • back-checking, local price collection 91–92

  • backward imputation 134

  • backward linking factor 210, 211

  • bank-specific credit card offers 81

  • bargaining, price 81–83

  • base invariance 445

  • base period sample account 293

  • basic index number, formulas and terminology 453–454

  • basket index 37, 191

  • basket price index 453

  • benchmarking 309

  • bias 26

    • components of 302–305

    • definition 301

    • elementary aggregate bias 303

    • new outlet 305

    • procedures to minimize 306

    • quality change and new goods bias 303–305

    • recommendations 306

    • summary of bias estimates 305–306

    • types of 301–306

    • upper-level substitution 302

  • bilateral price indices 227–228

  • block pricing 264

  • bonus offers 79–80

  • Boskin Commission 304, 305

  • bulletin 330–331

  • bundled goods and services 49

    • Division 12 of 50

C

  • calculating consumer price indices 175

    • alternatives to fixed-weight indices 194–196

    • axiomatic approach to elementary price indices 180–181

    • calculation of elementary price indices 177–180

    • calculation of elementary price indices using weights 189–190

    • calculation of geographic and national indices 194–198

    • calculation of higher-level indices 190–191

    • chained vs direct indices for elementary aggregates 182

    • consistency in aggregation 182–183

    • construction of elementary aggregates 175–177

    • economic approach to elementary price indices 181–182

    • higher-level price indices as weighted averages of elementary price indices 192–193

    • missing price observations 183–189

    • recommendations 198

    • reference periods 191

    • typical calculation methods for higher-level indices 193–194

    • see also consumer price index (CPI)

  • capital services 45

  • Carli index 21, 22, 126, 179, 181

    • definition 178

    • elementary aggregates 177

    • formula 2, 198

    • indices using relatives with missing prices 184

    • permanently disappeared varieties 186

    • replacing varieties with no overlapping prices 187

  • carryforward imputation, missing prices 129

  • cash back 80

  • catalog prices 78

  • central price collection 12, 78

  • central shops weights 8

  • chain drift 227, 228

  • chain index, calculating 199–200

  • chaining 162–163

    • bilateral price indices and 227–228

  • change(s)

    • analysis of contributions to 328

    • large price 85–86

    • link-to-show-no-price-change 135, 136, 148

    • quality change 163–164, 256, 303–305

    • seasonal adjustment and smoothing of index 328

    • tariff, for Internet prices 268

    • time-series presentation of level and 327–328

    • see also quality change

  • characteristicity 231, 445, 448

  • characteristics approach, rapid turnover of models 151

  • choice of item identifier 232

  • Classification of Individual Consumption According to Purpose see COICOP

  • classification systems, consumer price index 6, 7, 48–50

  • class mean imputation

    • quality adjustment 134–136

    • rapid turnover of models 150

    • seasonal products 237–238

  • clothing

    • seasonal products 237–238, 241

    • see also second-hand clothing

  • COICOP (Classification of Individual Consumption According to Purpose) 6, 7, 29, 441

    • aggregation structure for CPI 176

    • disaggregation of 49

    • financial services 279–280

    • international standard 48–49

    • introducing new classification systems 218–219

    • key changes from 1999 to 2018 49–50

    • partial weight updates at COICOP class level 214

    • subaggregates 329

    • transport services 273

    • weighting structure 55

  • COICOP 1999 (Classification of Individual Consumption According to Purpose 1999)

    • alcoholic beverages, tobacco and narcotics 348–349

    • clothing and footwear 349

    • communication 355

    • education 358

    • food and nonalcoholic beverages 347–348

    • furnishings, household equipment and household maintenance 351–353

    • health 353–354

    • housing, water, electricity, gas and other fuels 350–351

    • insurance 360

    • miscellaneous goods and services 359–360

    • recreation and culture 355–358

    • restaurants and hotels 358–359

    • social protection 360

    • transport 354–355

  • COICOP 2018 (Classification of Individual Consumption According to Purpose 2018) 361

    • alcoholic beverages, tobacco and narcotics 370–372

    • breakdown of consumption expenditure 361–425

    • clothing and footwear 372–375

    • education 414–416

    • food and nonalcoholic beverages 361–370

    • furnishings, household equipment and routine maintenance 380–387

    • health 387–395

    • housing, water, electricity, gas and other fuels 375–380

    • implementation of 50

    • information and communication 401–405

    • insurance and financial services 419–421

    • personal care social protection and miscellaneous goods 421–425

    • recreation, sport and culture 405–414

    • restaurants and accommodation services 417–419

    • transport 395–401

  • collection schedule price 86

  • commensurability test 180

  • comparable replacements 131–132

  • compensation index 262

  • computer-assisted data collection (CADC) price collection 100–101

  • confidentiality 332

  • congestion pricing 263

  • construction producer price index (CPPI) 51

  • consumer goods, definition 435

  • consumer price(s)

    • permanently unavailable 121

    • temporarily unavailable 121

  • consumer price index (CPI) xi–xii

    • acquisition, use and payment approach 3–4

    • automated data checking 109–111

  • calculating 21–24

  • classifications 48–50

  • classification structure 6, 7

  • concepts of 34–38

  • conceptual basis of weights 53–55

    • data 294

    • Data Quality Assessment Framework (DQAF) 307–308, 317

    • data sources 9–10, 57–59

    • definition 53

    • deriving weighting pattern 7–8

    • deriving weights in practice 59–61

    • developing 1

    • economic commentary and interpretation of 328–329

    • errors and biases 26

    • formula notations 27

    • frequency of weight updates 61–62

    • geographic coverage 4–5

    • imputed transactions and imputed prices 6

    • inclusion of newly significant products 64

    • indexation 2

    • inflation measurement 2

    • international standards of xii

    • introducing new weights 24

    • items requiring special treatment 62–64

    • linking previous CPI to new reference period 24–25

    • model quality report document 325

    • national accounts deflation 2

    • organization and management 25

    • overview of uses and needs 1–2

    • owner-occupied housing 64

    • planning and organizing price collection 105

    • popularity for economic analysis 33–34

    • press release 330

    • price collection form 107

    • price statistics in national accounts 51

    • product exclusions 6

    • publication and dissemination of 25–26

    • recommendations 50, 64

    • reference population for 5–6

    • resolution of Seventeenth International Conference of Labour Statisticians 427–434

    • scope of 38–48

    • seasonal adjustment and smoothing of 328

    • special cases 26

    • taxonomy of errors in 297

    • time-series presentation 327–328

    • type of index number formula 2–3

    • uses 29–34

    • weighting structure 8–9

    • weighting structure of 55–57

    • weight reference period 61

    • see also calculating consumer price indices; updating CPI weights

  • consumer profiles approach

    • example 266

    • mobile telephones 267

    • price measurement 265

    • quality adjustment 268

  • consumer substitution, definition 435

  • consumption, deflation 31–32

  • consumption expenditures, definition 435

  • contractual payments, indexation of 31

  • core inflation 329

  • cost of living index (COLI) 2, 37–38

  • counter seasonal imputation 237

  • country-product-dummy (CPD) method 447

    • weighted method 447

  • country-product-representativity-dummy method 447

  • country target index 195

  • coverage, definition 435

  • coverage of medical insurance, health services 276–277

  • credibility checking, price collection 97

  • credit card 80

    • fees 283–284

    • Internet purchases 245

    • research of bank data and 456

  • currency exchange 280–281

  • current cost accounting 32–33

  • customer profiles, telecommunications 271–272

  • cutoff sampling 67

    • definition 435

D

  • data

  • access to 332

  • timeliness of release vs accuracy of 332

  • data editing 13–14

  • price collection 93–95

  • data output checking 97–98

  • Data Quality Assessment Framework (DQAF) 307–308, 317

  • data validation

    • in field 89–90

    • field supervisors 90

    • price collection 93–95

    • visual 96

  • debit card fees 283–284

  • deflation 31–32

  • delivery charges, Internet purchases 245

  • democratic weights 54–55

  • CPI 5–6

  • deposit and loan facilities 282–283

  • deposit product, calculation of price index for 293–295

  • digitalization 458

  • direct extension method 231

  • disaster recovery, price collection 99–100

  • discounts) 48

  • discounted prices 79

  • discounting, education 279

  • dissemination 25–26, 233

    • international standards for, of CPI 331

    • recommendations 333–334

    • timeliness of release vs data accuracy 332

    • timing of, of CPI 331–332

  • Dissemination Standards Bulletin Board (DSBB) 315

  • documentation

    • control 311–312

    • control template 113, 319

    • overview 311

  • domestic concept 37, 243, 244

  • domestic coverage, consumer price index (CPI) 4

  • dual pricing 80–81

  • Dutot index 21, 22, 67, 126, 178, 179, 198

    • definition 177

    • elementary aggregates 177

    • formula 2, 136

    • indices using averages with imputed prices 185

    • indices using averages with missing prices 184

    • indices using relatives with imputed prices 185

    • permanently disappeared varieties 186

    • replacing varieties with no overlapping prices 188

    • use of 180, 181

  • dynamic universe 227

E

  • economic analysis, popularity of CPIs for 33–34

  • economic policy purpose, CPI for 30

  • education 277–279

    • discounting forms 279

    • pricing 278

    • scholarships 279

  • electronic reporting 100

  • elementary aggregate bias 303

  • elementary aggregate index 166, 168

  • elementary aggregates

    • aggregation structure 176

    • calculating price indices for 175–190

    • chained vs direct indices for 182

    • construction of 175–177

    • formula for estimating 208

    • weights within 177

  • elementary index error 439

  • elementary index formulas 2–3

  • elementary price indices 21–22

    • aggregation of 197, 198

    • axiomatic approach to 180–181

    • calculation of 177–180

    • calculation of chain index 199

    • calculation of using weights 189–190

    • economic approach to 181–182

    • formulas applicable to scanner data 190

    • formulas for 189–190

    • sampling properties of 179–180

    • unit value indices 190

  • enhanced General Data Dissemination System (e–GDDS) 307, 315, 331, 332

  • errors 26

    • estimation 299

    • estimation of variance 298–299

    • measurement 300

    • measuring 298–299

    • nonobservation errors 298

    • nonsampling 297–298

    • procedures to minimize 299–301

    • processing 298

    • recommendations 306

    • response 298

    • sampling 297

    • types of 297–298, 439

  • estimation error 297, 299

  • European Foundation for Quality Management (EFQM) Excellence Model 309

  • European Union (EU) 236, 328

  • Harmonised Index of Consumer Prices (HICP) 33, 343–354

  • Eurostat-Organisation for Economic Co-operation and

  • Development 446

  • evolutionary new products 164, 165–166, 169–170

    • forced replacement 166

    • sample augmentation 166

    • sample rotation 165

    • sample rotation in high-turnover groups 165–166

    • updating and chaining the index 165

  • evolutionary product 19, 20

  • expenditure

    • domestic and national concept of 36–37

    • gambling 43

    • gifts and subscriptions 42

    • goods and services 34–35

    • insurance 43

    • licenses 42

    • social security contributions and taxes 42

    • tips and gratuities 42

    • transactions in financial assets 43–44

    • transfers 42

    • unimportant or difficult-to-measure products 60–61

  • expenditure weights

    • conceptual basis of 53–55

    • Internet purchases 242–243

  • Expert Group on Consumer Price Indices 172

  • explicit quality adjustment 230, 437

  • export price index (XPI) 51

  • extras 79–80

F

  • feature/option costs, differences in 138–139

  • fee schedule 293

  • fees of agents and brokers 46

  • field supervisors, data validation 90

  • final consumption 260, 336

  • financial intermediation services indirectly measured (FISIM) 279–280, 282

  • financial services 279–280

    • COICOP (1999) 360

    • COICOP (2018) 419–421

    • credit and debit card fees when abroad 283–284

    • currency exchange 280–281

    • deposit and loan facilities 282–283

    • introduction 279–280

    • investment funds 282

    • property insurance services 285–287

    • real estate agency services 284–285

    • stockbroking services 281–282

  • Fisher price index 3, 23–24, 177, 190–191, 194–195, 200–202, 227–229, 302–303, 305, 335, 338, 342, 431, 445, 457

  • fixed basket, principle of 12–13

  • fxed-basket index 191, 192

  • fixed basket principle 83

  • fixed-weight approach, seasonal products 235, 236–237

  • fixed-weight indices 201

    • annual chaining 194

    • arithmetic vs geometric aggregation for 194–195

    • index formulas 194

    • long-term and short-term links calculating CIP 195–196

    • retrospective superlative indices 195

  • follow-up training, price collection 98–99

  • foreign currency

    • denominated prices 81

    • price 81

    • purchases and sales of 43

  • formula(s)

    • aggregation, for elementary price indices 124–125

    • basic index number 453–454

    • Carli index 2, 198

    • Dutot index 2, 136

    • elementary index 2–3

    • estimating higher-level indices 208

    • elementary price indices 189–190

    • for estimating elementary aggregates 208

    • formula for estimating 208

    • HICP index formulas 345

    • Jevons index 2, 22, 127, 177, 198

    • Laspeyres index 200, 345

    • notations 27

    • type of index number formula 2–3

    • Young index 192

  • forward imputation 134

  • forward linking factor 210, 211

  • free gifts 79–80

  • free products 48

  • fruits and vegetables, seasonal products 240

  • Fundamental Principles of Official Statistics (UN) 331

G

  • gambling 43

  • Geary-Khamis (GK) method 119, 229, 448

  • GEKS (Gini-Eltetö-Köves-Szulc) method 228–229, 231, 445–446, 448

  • general consumption index 262

  • Generic Statistical Business Process Model (GSBPM) 309

  • geographic approach

    • consumer price index (CPI) 4–5, 196

    • seasonal products 240

  • geographic coverage 39, 53

    • expanding CPI 219–220

    • HICP 343

    • Internet purchases 243–244

  • geometric averages 21–22

  • geometric Laspeyres index 23

  • geometric Paasche index 23, 229

  • geometric Young index 23, 193–195

  • gifts and subscriptions 42

  • globalization 459

  • Global Trade Item Numbers (GTINs) 298, 304–305

  • glossary 335–342

  • goods and services, undesirable, informal or illegal 46–47

  • gross fixed capital formation 260

  • Group of Twenty (G20) 33

  • Guidelines concerning dissemination practices for labor statistics 331

H

  • Handbook on Hedonic Price Indexes and Quality Adjustments in Price Indexes (OECD) 18

  • handheld computers, price collection 100–101

  • harmonic mean of price relatives 189

  • Harmonised Indices of Consumer Prices (HICP) 14, 33, 36, 39, 46, 236, 315, 327

    • coverage 343–344

    • definition of 200

    • European Union (EU) 343–354

    • household final monetary consumption expenditure 343

    • index formulas 345

    • methodological manual 345

    • prices 344–345

    • quality adjustment 345

    • release, timeliness and revisions 345

    • sampling 344

    • weights 344

  • health services 274–275

    • COICOP (1999) 353–354

    • COICOP (2018) 387–395

    • coverage of medical insurance 276–277

    • doctors and dentists 275–277

    • education 277–279

    • health services (doctors and dentists) 275–277

    • introduction 274–275

    • pricing 276

    • sampling 275–276

    • social protection 279

    • weights 277

  • hedonic approach

    • equivalences of 152

    • implementation of 142–144

    • imputation 151–152

    • interpretation of estimated hedonic coefficients 142

    • limitations of the 144–146

    • patching 139–142, 148

    • quality adjustment 139–146

    • rapid turnover of models 150–152

    • regression imputation of new variety’s price 143, 144

    • regression imputation of old variety’s price 144

  • hedonic geometric mean characteristics 151

  • hedonic geometric mean imputation 151

  • hedonic indices 162–163

  • hedonic price indices

    • matched indices and 152–153

    • rapid turnover of models 150–152

    • time dummy variable approach 150–151

  • Hidiroglou and Berthelot method 95

  • higher-level indices

    • calculation of 190–191

    • calculation of chain index 199–200

    • formula for estimating 208

    • typical calculation methods for 193–194

    • as weighted averages of elementary price indices 192–193

  • hire purchase 43, 44

  • household actual final consumption 35

    • definition 34

  • household budget surveys (HBSs) 37, 53

    • adjusting 60

    • as data source 57–58

  • household expenditure

    • discounts, rebates, loyalty programs and “free” products 48

    • fees of agents and brokers 46

    • imputed expenditure on goods and services 47–48

    • luxury goods and services 47

    • second-hand goods 47

    • undesirable, informal or illegal goods and services 46–47

  • household final consumption expenditure (HFCE) 32, 34, 35, 39

  • household final monetary consumption expenditure (HFMCE) 35, 36, 47, 343, 344

  • household production 45–46

  • households

    • scope of CPI 38–39

    • see also own-account production

  • housing

    • accounting for missing observations 255–256

    • acquisitions approach 251–253

    • calculating rent index 255

    • depreciation, major improvements and quality change 256

    • introduction to 245

    • measuring owner-occupied, under acquisitions approach 253–254

    • owner-occupied services 245–254

    • payments approach 248–251

    • prices and rent surveys 254–255

    • rented accommodation 254–256

    • services 45, 260, 261

    • use approach 246–248

    • weights 254

    • see also own-account production

  • hyperinflation, price collection 85–86

I

  • ICP see International Comparison Program (ICP)

  • Iklé-Kidhanov-Balk (IDB) method 448

  • impact checking 97–98

  • implicit quality adjustment 229–230, 437

  • import price index (MPI) 51

  • imputation 126

    • class mean 19

    • missing products 16

    • overall mean 19

    • term 34

  • imputed expenditure on goods and services 47–48

  • imputed expenditures, definition 435

  • imputed prices 6, 435

  • imputed transactions 6

  • income, deflation of 31–32

  • independence 34

  • indexation 30–31

    • of consumer price index 2

    • of interest, rents and contractual payments 31

    • of social security benefits 31

    • type of index for 30

    • of wages and pensions 30–31

  • index compilation, research 456–457

  • index dispersion report 93

  • index number formula, consumer price index concepts 2–3

  • index reference period 191, 200, 335

    • deciding on 207–208

    • definition 435

    • keeping the old 211, 212

  • indices for current accounts 295

  • inflation

    • accounting under 32–33

    • consumer price indices and 29–30

    • core 329

    • international comparisons of 33

    • measurement 2

    • perceptions 33–34

  • inputs 45

  • inquiry management system, price collection 86–87

  • institutional households 5, 38

  • insurance 43, 63

    • HICP 344

  • integrity 34, 331

  • interest, indexation of 31

  • interest data 294

  • interest payments 44

  • intermediate consumption 260, 336

  • International Comparison Program (ICP) 32

    • aggregation at basic heading level 446–450

    • aggregation methods for spatial comparisons 444–445

    • benefits from CPI and ICP integration 450–451

    • data requirements for comparisons 444

    • differences between temporal and spatial comparisons 443–444

    • index number methods for spatial comparisons 446

    • notation and conceptual framework 445–446

    • purchasing power parities (PPPs) 443–445, 447–449

    • subnational PPPs 450–451

  • International Conference of Labour Statisticians (ICLS) xii

    • resolution (17th) concerning CPIs adopted by 427–434

  • International Labour Organization (ILO) xi, 307, 331

    • Resolution 6, 14

    • Resolution (2003) 235, 256

    • Survey (2012) 298

  • International Monetary Fund (IMF) xi, 53, 307, 315, 331

  • Internet 73

    • coherence and data integration 242

    • determining location of online retailer 243–244

    • estimating expenditure weights for 242–243

    • geographical coverage 243–244

    • introduction to 241–242

    • national vs domestic concept 243

    • price collection 244

    • purchases 63, 241–245

    • treatment of additional costs for 244–245

  • Intersecretariat Working Group on Price Statistics (IWGPS) xi, xii, xiii

  • intersection universe 161

  • investment funds 282

  • ISO 9001, 309–310

  • item replacement 161–162

  • item substitution 161–162

J

  • Jevons-Gini-Eltetö-Köves-Szulc (Jevons-GEKS) method 446

  • Jevons index 67, 126, 178, 179, 181, 227

    • elementary aggregates 177

    • formula 2, 22, 127, 177, 198

    • indices using averages with imputed prices 185

    • indices using averages with missing prices 184

    • indices using relatives with imputed prices 185

    • indices using relatives with missing prices 184

    • permanently disappeared varieties 186

    • replacing varieties with no overlapping prices 187

K

  • Knibbs, G. H. 23

L

  • labor cost index (LCI) 51

  • landline telephones, matched models 265, 266

  • Laspeyres index 2, 23, 38, 67, 192

    • formula 200

    • geometric 23, 192

    • Laspeyres-type formula 345

    • new weights 205–206

  • licenses 42

  • life insurance 43, 279, 280, 344

    • COICOP (1999) 360

    • COICOP (2018) 419–420

  • linking, definition 435

  • link-to-show-no-price-change 135, 136, 148

  • list prices 78

  • Lloyd-Moulton index 190

  • local currency price 81

  • local price collection 12, 77–78

    • back-checking 91–92

    • procedures for 86–87

    • quality checks 91

  • loss of characteristicity 231

  • Lowe index 22–23, 37, 38, 191, 192, 198, 200–201

    • new weights 207

  • loyalty programs 48

  • luxury goods and services 47

M

  • management 25

  • market intelligence 59

  • matched-model method (MMM) 121

    • hedonic indices and matched indices 152–153

    • index number bias 159–160

    • missing varieties 122

    • new products 123

    • potential errors in 122–123

    • price index bias and pricing strategies 159

    • sampling issues 122–123

  • matched samples 264

    • example 265–266

    • maintenance and 161–163

    • price measurement 264

    • quality adjustment 267

    • tariffs 264, 265–266

    • telecommunications 270–271

  • matrix consistency 446

  • maximum overlap price index 239–240

  • mean splice 231

  • measurement errors 300

  • metadata

    • explaining index quality 333

    • maintaining the sample 172–173

  • methodological statement 330–331

    • presentation of 332–333

  • missing prices 97, 121–122

    • aggregation formula for elementary price indices 124–125

    • carryforward imputation 129

    • comparable replacements 131–132

    • concepts for treatment of 123–125

    • general considerations 129

    • guide to treatment of 146

    • illustrative variety codes for price collection 125

    • long-term vs short-term comparisons 124

    • multiplicative vs additive adjustment 123

    • noncomparable replacements 132

    • observations 183–189

    • overall mean imputation 126–128, 155–157

    • permanently observations 131–132

    • price reference vs current period adjustment 124

    • recommendations 153–154

    • role of price collectors 125

    • targeted mean imputation 128–129, 155–157

    • treatment of permanently disappeared varieties 186–189

    • treatment of temporarily 183–185

    • treatment of temporarily, observations 126–129

    • treatment of temporarily and permanently 125–126

    • see also quality adjustment

  • Mitchell, W. C., 23

  • mobile telephones

    • consumer profiles 266, 267

    • price collection 100–101

  • Model Quality Report Document for CPI 325

  • models see rapid turnover of models

  • monetary purpose, CPI for 30

  • monetary transactions 36, 54

  • monetary transactions index 262

  • monitoring performance 314

  • mortgage interest charges 250

  • movement splice 231

  • multilateral indices, revisions in 231–232

  • multilateral methods

    • assessing 232

    • calculating indices 232–233

    • communicating with users and stakeholders 233

    • dissemination of 233

    • implementation of 232–233

    • operational choices 232

    • producing empirical results 232–233

    • publication of 233

  • multilateral price index methods 228–229

    • bilateral price indices and chaining 227–228

    • defining the variety 226–227

    • Geary-Khamis (GK) method 229

    • GEKS Method 228–229

  • multipurpose goods and services 49

N

  • national accounts 10

    • household final consumption expenditure (HFCE) 32

    • use of price statistics in 51

  • national accounts data, as data source 58

  • national accounts deflation 2

  • national concept 37, 243

  • national coverage, consumer price index (CPI) 4, 196–197

  • national pricing strategies 73

  • national statistical offces (NSOs) xi, 1, 121, 200

  • net price indices 40–41

  • new goods and services, quality adjustment 268–269

  • new goods bias, quality change and 303–305

  • new goods error 439

  • new outlet bias 305

  • new outlet error 439

  • new products 19–21

    • CPI in between basket revisions 167–168

    • distinguishing between new elementary aggregates and 170–171

    • evolutionary 165–166, 169–170

    • example introducing a new elementary aggregate 168

    • example introducing a new weights for higher-level aggregates 169

    • incorporation of 163–172

    • major concerns 164

    • methods for incorporating 164–168

    • planning the introduction of 20

    • quality adjustment 268–269

    • quality changes vs 163–164

    • recommendations 173

    • responding to limitations in overlap method use 171–172

    • revolutionary 166–167, 170

    • timing the introduction of 20–21

  • noncomparable replacements 132

  • nondurable good 36

  • nonmonetary transactions 36, 54

  • nonobservation errors 298

  • nonprobability sampling techniques 67–68

  • nonprofit institutions serving household (NPISH) 34, 35, 38, 251, 274

  • nonresponse 301

  • nonsampling errors 297–298, 299

  • nontransaction prices 78

O

  • observation errors 298

  • online prices, collection 101–102

  • optimal allocation, sampling 74–75

  • Organisation for Economic Co-operation and Development (OECD) xi, 18, 282, 304, 446

  • organization 25

  • Ottawa Group 172

  • outlets

    • coverage 39–40

    • definition 435

    • outlet-type weights 57

    • product substitution 15

    • replacement 162

    • rotation bias 40

    • scope of CPI 38–39

    • second-hand goods 258

    • substitution bias 42

    • substitution error 439

  • outliers review, price collection 96

  • outputs 45, 46

  • overall mean imputation 155–157

    • missing prices 126–128, 155–157

    • seasonal products 237–238

  • overcoverage 298

  • overlap method

    • assumptions and concerns on use of 134–136

    • forward vs backward imputation 134

    • imputed overlap prices 133–134

    • quality adjustment 132–134

    • use of overlap price 132

    • using actual price of replacement in preceding period 133

  • own-account production

    • background 260–261

    • construction of “compensation” index 262

    • construction of “general consumption” index 262

    • construction of “monetary” transactions index 262

    • household services 262–263

    • introduction of 259–260

    • scope and choice of index 261–263

  • owner-occupied housing 64, 344

    • research 457–458

    • services 261

P

  • Paasche index 23, 30, 38, 190, 192, 195, 201, 230, 239, 303, 340

    • geometric 23, 229

  • patching

    • hedonic approach 139–146, 148

    • term 142

  • payment, definition 435

  • payments approach 3

    • housing 248–251, 254

    • property insurance services 285

  • peak-load pricing 263

  • pensions, indexation of 30–31

  • period-of-time price collection 84–85

  • permanently unavailable prices 121

  • plutocratic CPI 5

  • plutocratic weights 54–55

  • point-in-time price collection 84–85

  • point-of-purchase surveys 59

  • population censuses 59

  • population coverage 38–39, 53–54

  • practice see calculating consumer price indices

  • presentation

    • alternative and subaggregate indices 329–330

    • core inflation 329

    • example of illustrative press release 330

    • of methodology 332–333

    • press release, bulletin and methodological statement 330–331

    • recommendations 333–334

    • related and alternative measures 329–330

    • role of advisory committees 333

    • time-series, of level and change 327–328

  • press release 330–331

    • timeliness vs data accuracy 332

  • price(s)

    • bargaining 81–83

    • collecting and editing 12–14

    • coverage 40–41

    • data editing 13–14

    • defining 78–81, 435

    • discrimination 79

    • Harmonised Index of Consumer Prices (HICP) 344–345

    • principle of a fixed basket 12–13

    • principles of price collection 12–13

    • second-hand goods 259

    • variety specifications 13

  • price collection 72–73, 77

    • calculating average price from data in elementary aggregate 103

    • calculation of average product price 115

    • central 78

    • checklist for second-hand clothing 289

    • collection by telephone 100

    • collector training 98–99

    • computer-assisted data collection (CADC) 100–101

    • continuity and use of codes 88–89

    • data validation and editing 93–98

    • defining the price 78–81

    • disaster recovery 99–100

    • documentation control template 113

    • electronic reporting 100

    • example of form 107

    • fixed basket principle 83

    • frequency 84

    • Internet purchases 244

    • item specifications 83–84

    • letter to second-hand clothing retailer 291

    • local 77–78

    • measuring hyperinflation or large price changes 85–86

    • median and quartile values in 94–95

    • missing prices 97

    • online prices 101–102

    • organization options 77–78

    • period-of-time or point-in-time 84–85

    • planning and organizing 105

    • practical aspects of managing 86–93

    • price bargaining 81–83

    • principles of 78–86

    • quality management 89–93

    • questionnaire design 87–88

    • recommendations 103

    • timing of 85

    • unavoidable costs not part of advertised price 81

    • web scraping 102–103, 117–119

    • work instructions 99

  • price collectors 82, 300

  • price index, calculation for deposit product 293–295

  • price quote report 93

  • price reductions 78–81

  • price reference period 191, 200, 335

    • annual 202–203

    • annual average 210–211

    • definition 435

    • monthly 203, 209–210

    • quarterly 203, 209–210

  • price statistics, use in national accounts 51

  • price updating of weights 435

  • price variation 41–42

    • between outlets 41–42

    • outlet substitution bias 42

    • price discrimination 41

  • price vs capacity, scatter diagram 140

  • pricing

    • education 278

    • health services 276

  • pricing gross insurance premiums, property insurance services 286–287

  • private households 5, 38

  • probability proportional to size (PPS) sampling 66

  • probability sampling

    • definition 435

    • techniques 66–67

  • processing errors 298, 300

  • producer price index (PPI) 51

  • product(s)

    • adjusting for quality differences 17–19

    • calculation of average prices 115

    • comparable replacements 17

    • direct or explicit quality-adjustment methods 17–18

    • implicit quality adjustment 18

    • missing 14–17

    • new 19–21

    • overall mean imputation 19

    • overlap pricing 18–19

    • permanently missing 16–17

    • selection of replacement for pricing 16–17

    • substitution procedures 15

    • temporarily (nonseasonal) missing 15–16

    • weights 8–9

    • see also new products; seasonal products

  • product coverage, HICP 343

  • product exclusions, CPI 6

  • production costs, differences in 139

  • production processes see audits of production processes

  • pro forma for audit schedule 321

  • projected current period sample account 294

  • property insurance services 285–287

    • acquisitions approach 286

    • payments approach 285

    • pricing gross insurance premiums 286–287

    • use approach 285–286

    • using gross premiums as proxy for net insurance service 287

  • proportionality test 180

  • publication 25–26, 233

  • public transportation 273–274

  • purchasing power parities (PPPs) 32, 443–445, 447–449

    • research agenda 458

    • subnational 450–451

  • pure price change, definition 435

Q

  • qualitative assessment, nonsampling errors 299

  • quality 331

    • adjusting price for differences 17–19

    • class mean imputation 19

    • comparable replacements 17

    • definition 315

    • direct or explicit adjustments methods 17–18

    • explaining index 333

    • implicit adjustment 18–19

    • overall mean imputation 19

    • overlap pricing 18–19

  • quality-adjusted unit value index 230

  • quality adjustment

    • choice between methods 146–148

    • class mean imputation method 134–136

    • definition 435

    • differences in feature/option costs 138–139

    • differences in production costs 139

    • explicit methods of 136–146, 230, 437

    • hedonic approach 139–146

    • HICP 3

    • implicit methods of 132–136, 229–230, 437

    • link-to-show-no-price-change 135, 136, 148

    • overlap methods 132–134

    • quantity adjustment 136–138

    • research 456

    • second-hand goods 259

    • tariffs 267–269

    • using replacement and price overlap 157

    • see also missing prices

  • quality change

    • definition of 130

    • error 439

    • housing 256

    • nature of 130–131

    • new goods bias and 303–305

    • new products and 163–164

  • quality checks

    • back-checking 91–92

    • data reports 92–93

    • by head office 92

    • price collection 90–93

    • role of auditors 91

    • role of head office 90–91

  • quality management 308

    • benchmarking 309

    • frameworks for reporting and improving CPI 314–316

    • price collection 89–93

    • prototype of system 310–311

    • systems 308–310

    • total (TQM) 308–309

    • work programs 316

  • quantity adjustment 136–138

  • questionnaire design, price collection 87–88

  • quota sampling 67–68

    • definition 435

R

  • rapid turnover of models 148

    • characteristics/repricing approach 151

    • difference between hedonic and matched indices 152–153

    • hedonic imputation approach 151–152

    • hedonic price indices 150–152

    • illustration of 149

    • matching and overlap method for markets with 149–150

    • recommendations 154

    • time dummy variable approach 150–151

    • use of class mean imputation 150

  • ratio of harmonic mean prices 189

  • real estate agency services 284–285

  • rebates 48, 80

  • reference households 38

  • reference periods 191

  • reference population

    • consumer price index (CPI) 5–6

    • definition 435

  • refresher training, price collection 98–99

  • refunds 80

  • regional coverage, consumer price index (CPI) 4–5

  • regional weights 55–57

  • release, HICP 345

  • rental equivalence approach 247, 254

  • rented accommodation

    • accounting for missing observations 255–256

    • calculating rent index 255

    • housing 254–256

    • rent surveys 254–255

    • updating rent sample 256

    • weights 254

  • rents 73

    • indexation of 31

  • replacement universe 161

  • reporting, CPI 316

  • representative item method 68

  • repricing approach, rapid turnover of models 151

  • Research

    • agenda for consumer price index (CPI) 455–459

    • price-updating expenditure weights 201–202

    • services 457–458

  • response errors 298

  • retail trade statistics 59

  • revolutionary new products 164, 166–167, 170

  • revolutionary product 19, 20

  • risk assessment 313

  • rolling window methods 231

S

  • sale prices 79

  • sales taxes 80

  • sample

    • approaches to drawing 11–12

    • augmentation 166, 169, 170, 171

    • designing the 10–11

    • maintaining and updating 14

    • rotations 162–163

    • replenishment 17

    • second-hand goods 258

  • sample maintenance

    • information requirements 172–173

    • item replacement or substitution 161–162

    • matching and 161–163

    • outlet replacement 162

    • rotation, chaining and hedonic indices 162–163

    • see also new products

  • sample of bills approach

    • example 266

    • price measurement 265

    • telecommunications 272

  • sampling 65

    • central price collection 72–73

    • cutoff sampling 67

    • errors 297

    • health services 275–276

    • of items 70

    • of locations 69–70

    • nonprobability techniques 67–68

    • of outlets 70–71

    • probability techniques 66–67

    • quota sampling 67–68

    • recommendations 75

    • representative item method 68

    • sample maintenance 73–74

    • stages in CPI 69–72

    • stratification 68–69

    • techniques 65–69

    • in time 72

    • variance estimation and optimal allocation 74–75

    • of varieties 71–72

  • scanner data 59, 72, 165, 221

    • assessing and preparing for use 222–223

    • benchmark index 119

    • benefits and challenges of using 223

    • bilateral price indices and chaining 227–228

    • classifying 222–223

    • for data validation and quality assurance 223–224

    • defining the variety 226–227

    • explicit quality adjustment 230

    • formulas applicable to 190

    • Geary-Khamis (GK) method 229

    • GEKS method 228–229

    • implementation of 223–226

    • implementation of multilateral methods 232–233

    • for implementing new CPI compilation methods 226

    • implicit quality adjustment 229–230

    • multilateral methods 228–229

    • obtaining sets 221–222

    • online prices 102

    • quality assurance of 223

    • for replacing field-collected prices 224

    • research 455

    • revisions in multilateral indices 231–232

    • Sources of weights 189

    • time product dummy (TPD) method 229

    • for updating index structures 225–226

    • for updating pricing samples 224–225

    • web-scraped data 118, 152, 165, 173

  • scholarships, education 279

  • scope of the index, definition 435

  • seasonal products 62–63, 235–241

    • challenges 241

    • clothing 238, 241

    • fixed or seasonal weights 239

    • fixed-weight approach 236–237

    • fruits and vegetables 240

    • implementation problems 241

    • imputation of prices under fixed-weight approach 237–238

    • intractable problems 241

    • introduction of 235–236

    • lack of well-defined seasons 241

    • monthly approach 239–240

    • replacing domestic with imported products when out of season 241

    • research 456

    • seasonal-weight approach 238–239

  • seasonal-weight approach, seasonal products 235, 236, 238–239

  • second-hand clothing

    • price collection checklist for 289

    • price collection letter to retailer 291

  • second-hand goods 6, 47, 63–64

    • alternative approaches 259

    • following prices of basket of items 258–259

    • initial sample selection 258

    • introduction 256–258

    • items 258

    • outlets 258

    • prices of new goods 259

    • quality adjustment 259

    • wholesalers’ prices 259

  • selection error 297, 439

  • semidurables 36

  • services, research 457–458

  • services producer price index (SPPI) 51

  • Seventeenth International Conference of Labour Statisticians, resolution concerning CPIs adopted by 427–434

  • simple random sampling (SRS) 66

  • social protection 279

    • COICOP (1999) 360

    • COICOP (2018) 421–425

  • social security benefits, indexation of 31

  • social security contributions and taxes 42

  • special cases 26

  • Special Data Dissemination Standard (SDDS) 307, 315, 331

  • special group discounts 264

  • special offer prices 79

  • stamps 80

  • static universe 227

  • Statistical Office of the European Union (Eurostat) xi

  • stockbroking services 281–282

  • stratification, sampling technique 68–69

  • stratum weights 8

  • subsistence agriculture 45, 260, 260–261, 261

  • superlative indices (Fisher, Tornqvist and Walsh) 177, 190–191, 195, 227

  • supervisor training, price collection 99

  • supply and use, price statistics in national accounts 51

  • survey of purchasers 82

  • sustainability 458

  • symmetric indices 23–24

  • systematic sampling 66

  • System of National Accounts (SNA) 29, 243, 336

    • bargaining 81

    • research agenda 458–459

T

  • tablets, price collection 100–101

  • targeted mean imputation

    • missing prices 128–129, 155–157

    • seasonal products 237–238

  • tariffs 72

    • changes for Internet prices 268

    • classifications 269

    • consumer profiles 265, 266, 268

    • Internet services 268

    • introduction 263–264

    • main measurement issues 264

    • matched samples 264, 265–266

    • new goods and service providers 268–269

    • price measurement methods 264–265

    • quality adjustment 267–269

    • sample of bills approach 265, 266

    • unit values 264–265, 266

  • taxes and subsidies 40

  • tax schedule 294

  • telecommunications

    • customer profiles 271–272

    • example of user profile for mobile phone services 272

    • examples of specifications 270

    • illustrative index structure for 270

    • introduction of 269–270

    • matched samples 270–271

    • sample of bills 272

    • unit values 271

  • telephone, price collection 100

  • template

    • audit report 323

    • documentation control 319

  • temporarily unavailable prices 121

  • terminology, basic index number 453–454

  • terms, glossary of 335–342

  • time dummy variable approach 150–151

  • timeliness, HICP 345

  • time product dummy method 229

  • time reversal test 180

  • tips and gratuities 42

    • for services 80

  • Törnqvist price index 3, 23–24, 177, 190–191, 194–196, 201–202, 227–230, 335, 342, 431, 445, 457

  • total quality management (TQM) 308

  • tourism expenditure surveys 59

  • trade associations 59

  • trade-ins 80

  • training, price collection 98–99

  • transaction prices, reductions 78–81

  • transactions in financial assets 43–44

  • transfers 42

  • transitivity 444, 445

    • test 180–181

  • transport services

    • COICOP (1999) transport 354–355

    • COICOP (2018) 395–401

    • introduction 272–273

  • public transportation 273–274

  • Tukey algorithm 95

  • two-part tariffs 263

U

  • undercoverage 298

  • United Nations Economic Commission for Europe (UNECE) xi, xii, xiii, 172n5

  • unit prices 89

  • unit value approach

    • example 266

    • price measurement 264–265

    • quality adjustment 267–268

    • telecommunications 271

  • unit value index 190

  • updating CPI weights

    • aggregation across linked series 213

    • annual updating and linking 215–218

    • annual weight updates 217–218

    • approaches to 200

    • calculating chain index 199–200

    • deciding on index reference period 207–208

    • deciding on price reference period for 202–203

    • developing update factors 203–205

    • example of calculating new series at first level of aggregation 212–213

    • expanding CPI geographic coverage 219–220

    • formula for estimation 208

    • frequency of weight updates 214–215

    • introducing new classification systems 218–220

    • introducing new weights 205–207

    • linking new series to old index reference period 211, 212

    • linking previous CPI to new price index reference period 208–213

    • price reference period as single month or quarter 209–210

    • price reference period as yearly average 210–211

    • recommendations 220

    • research on price-updating expenditure weights 201–202

    • using Lowe or Young index 200–201

  • upper-level or section weights 9

  • upper-level substitution bias 302

  • upper-level substitution error 439

  • use, definition 435

  • use approach 3

    • property insurance services 285–286

  • user consultation

    • different uses of CPI 333

    • role of advisory committees 333, 334

  • user cost approach, housing 246–248, 254

  • utility gain 170

V

  • variance

    • estimation of 298–299

    • sampling 74–75

  • visual data validation 96

W

  • wages, indexation of 30–31

  • Walsh price index 3, 23–24, 117, 190–191, 195, 200–201, 339, 342, 431, 445, 453, 457

  • washing machine data

    • estimated equation of price against capacity 141

    • hedonic regression estimates for 141

    • scatter diagram of price vs capacity 140

  • web prices, research 455–456

  • Web Robots 102

  • web scraping 115, 117

    • benefits of 117

    • classification of data 118

    • country case study 119

    • limitations of 117

    • options for aggregating prices 119

    • options for defining individual products 118–119

    • practical considerations 118

    • price collection 102–103

    • process of 117–118

    • research 456

    • typical data structure 118

  • weight(s)

    • conceptual basis of 53–55

    • definition 435

    • see also updating CPI weights

  • weighted country-product-dummy (CPD) method 449

  • weighting

    • democratic and plutocratic weights 54–55

    • deriving the pattern 7–8

    • frequency of weight updates 61–62

    • geographic coverage 53

    • implicit weights within elementary aggregates 9

    • introducing new 24

    • monetary and nonmonetary transactions 54

    • national vs domestic concept 53

    • outlet-type weights 57

    • population coverage 53–54

    • reference period 61

    • regional weights 55–57

    • structure 8–9

    • structure of CPI 55–57

    • see also updating CPI weights

  • weight reference period 191, 200, 335

    • definition 435

  • welfare gain 170

  • wholesalers’ prices

    • second-hand goods 259

    • survey of trends in 82

  • window splice 231

  • work instructions, price collection 99

  • work programs 316

  • World Bank xi, 32, 33, 443

Y

  • Young index 23, 37, 192, 195, 198, 200–203, 453

    • definition 342

    • formula 192

    • geometric 23, 193–195

    • modified 339

    • new weights 206–208

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Author:
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