Volume 1: Consumer Price Indices

Belgium

Official title

Indice des prix à la consommation (Consumer Price Index).

Scope

The index is compiled monthly and covers average households of the whole country.

Official base

1988 = 100.

Source of weights

The weights and selected items were derived from a household expenditure survey conducted during May 1987-May 1988 among 3,315 families of wage earners, salaried employees, non-active people and own-account workers.

Weights and composition

Major groups Number of items Weights Approximate number of price quotations (a)
Food 15718.98558900
Tobacco 41.1301200
Clothing and footwear 468.5809600
Housing: @@@
Rent 27.175-
Repairs, maintenance and water 106.155-
Fuel and light 206.070-
Furniture and household appliances 547.85012500
Medical care 174.9002100
Transport and communication 3316.4952600
Education and recreation 398.3555900
Other goods and services 4714.3057300
Total 429100.000102300

Note: (a) Number of quotations collected by field agents, excluding quotations obtained by the central service.

Household consumption expenditure

Consumption expenditure for the purpose of the index includes almost all goods and services consumed by households. It also includes the imputed values of home-grown and home-produced goods and goods received as income in kind.

Method of data collection

Prices of most items are collected by agents at retail outlets and service establishments in 65 towns and villages throughout the country. Price are collected each month between the 1st and the 20th for almost all items.

The prices collected are for cash purchases, inclusive of all taxes, by consumers who are not given any special treatment. Price reductions are taken into consideration from the first day of special offers if they last at least one day, provided the product is of good quality and is available in sufficient quantities. Prices of sale items are not taken into consideration.

Housing

Rent quotations are obtained for public and non-public housing in the country's 11 provinces. Data on rented public housing are collected from a number of registered public housing companies. Data on rent for non-public housing are obtained from a representative sample of 1,521 apartments and houses of various sizes. The sample is revised each month by replacing two dwellings with two new ones in order to take into account turnover in the rented housing market.

Specification of varieties

Specifications indicate in particular the choice of units used. In most cases definitions are rather flexible to allow for possible changes to be taken into consideration, but sufficiently strict to ensure continuity of data collection.

Substitution, quality change, etc.

With the approval of the central service, agents are given a certain leeway to replace an item which has disappeared, in accordance with the following guidelines. A shop of a given type must be replaced by an outlet of the same type. A given product should be replaced either by an equivalent product at the same shop, or by the same product at another shop.

For certain specific items for which samples have been derived (cars, non-public rents, third-party insurance for automotive vehicles and third-party family life insurance), the new item is chosen from a pre-defined list according to specific criteria. The new item is introduced in the average index as set by the other items of the same sub-group. An increase over the previous month's price is taken into account by assigning the same progression to the missing item as that of the average index of other items in its sub-group.

Seasonal items

Seasonal fluctuations in the prices of fresh flowers, fruit and vegetables are taken into account by changing the monthly composition of the items in the sub-group, the overall weight of which remains constant. The indices of certain seasonal items and services are calculated using the price of the corresponding month of the base period rather than the average price for the whole base period, the base prices being the result of the arithmetic average of prices in the corresponding month of 1987, 1988 and 1989.

Computation

The index is computed according to the Laspeyres formula as a weighted arithmetic average with fixed base, using weights corresponding to the base period.

Separate indices are calculated for 65 towns and villages. The price relative for each item and for each town or village is computed by dividing the average price by its base period price. The average price is the simple arithmetic mean of all prices collected. The 65 towns' or villages' indices are then weighted to arrive at the national index, the weights used being proportional to the population of each town or village as of 1 January 1988.

Other information

The general index is also published using the following bases: 1981 = 100; July 1974-June 1975 = 100; and 1971 = 100.

Organisation and publication

Ministère des Affaires économiques, Institut national de statistique: Bulletin de statistique (Brussels).

Idem: Communiqué hebdomadaire.

Ministère des Affaires économiques, Administration du commerce, Service de l'indice: Le nouvel indice des prix à la consommation; base 1988 = 100 (Brussels, 1991).