Volume 1: Consumer Price Indices

France

Official title

Indice des prix à la consommation des ménages urbains dont le chef est ouvrier ou employé (Consumer Price Index for Urban Households).

Scope

The index is compiled monthly and covers urban households of all sizes, in which the head of the household is a wage or salary earner.

Official base

1980 = 100.

Source of weights

The weights are revised at the beginning of each calendar year using the results of continuing family expenditure surveys conducted among 10,000 households and data on household accounts obtained from the system of national accounts. The weights used to compute the indices for a given year are based on the results of surveys carried out two years before and updated to December of the preceding year. The number of items and the weights used in 1992 are as follows:

Weights and composition

Major groups Number of items Weights Approximate number of price quotations
Food 9122.67...
Clothing, footwear and household linen 598.36...
Furniture, furnishings, household goods, cleaning materials, tobacco, etc. 8225.64...
Fuel and light 78.18...
Housing:
Rent 17.74...
Water 10.76...
Maintenance and repairs 31.22...
Personal and medical care 126.14...
Public transport and maintenance of vehicles 86.81...
Other services (incl. restaurants, etc.) 3212.48...
Total 296100.00180000

Household consumption expenditure

Home-produced goods and services, second-hand purchases, hospital services, social security contributions, used car insurance premiums, sea and air transport, veterinary services, goods and services for funerals and domestic services are not included in the index, but indirect taxes (VAT) are included.

Method of data collection

Prices are collected by agents from 30,000 retail outlets and service establishments in 108 urban centres with more than 2,000 inhabitants. They are collected monthly for most goods and services, quarterly for clothing and furnishings and twice a month for fresh products. Mail-order sales are not covered. The prices collected are those actually paid by consumers.

Housing

Rent quotations are obtained for all types of dwellings during the first month of a quarter, using a special household survey. Owner-occupied dwellings are excluded from the index.

Specification of varieties

Specifications are detailed. The price collector chooses the specific product for regular price collection in each retail outlet.

Substitution, quality change, etc.

If the quality of an item changes, either it is replaced by a similar item assuming that there is no price change, or the quality change is measured and isolated from the price change. New items are introduced only when their sales become important.

Seasonal items

Seasonal fluctuations in the prices of fresh products are taken into account by varying items and item weights within monthly baskets of constant group weights and by using a 12-month moving average.

Computation

The index is a chain index, in which the weights are changed at the beginning of each calendar year. The index for each month is first computed on base December of the preceding year = 100; the resulting index is then calculated on base 1980 = 100 (Laspeyres' chain index).

Other information

Detailed sub-groups and various other groups are published, as are consumer price index estimates for various social and occupational categories of heads of households (base 1970 = 100), and a series for greater Paris.

Organisation and publication

Institut national de la statistique et des études économiques (INSEE): Bulletin mensuel de statistique (Paris).

Idem: Informations rapides.

Idem: Pour comprendre l'indice des prix.