Volume 1: Consumer Price Indices

Slovenia

Official title

Indeks cen zivljenskih potrebscin (Consumer Price Index).

Scope

The index is computed and published monthly. The index covers the whole country and all private residential households without any reference to the number of household members or income limits.

Official base

December, previous year = 100. The index base is changed each calendar year.

Sources of weights

The data source for weights is the family expenditure survey. As the previous year is the base year for calculation of the index, and whereas weights are revised every 4 to 5 years, at the beginning of each year they are corrected by the price changes between the reference period of the weights (1993) and the base period of the index.

The latest weights of the index were derived from the Household Consumption Survey conducted in Slovenia in 1993, covering 3,270 households. On the basis of the population census (1991) enumeration areas were stratified in five population groups according to the region (Ljubljana, Rest of Slovenia), to the urban and rural area and to the agricultural area.

Then with probability proportional to their size 654 enumeration areas were sampled and in each of them five households were randomly selected. The sample covered 0.5% of the Slovenian population and is representative for the country as a whole. The survey was conducted with a five-year frequency with a reference period of one year. Since 1994 the survey is carried out every year.

Weights and composition

Major groupsNumber of itemsWeightsApprox. No. of price quotation
Food and non-alcoholic beverages13327.4...
Alcoholic beverages and tobacco143.2...
Clothing and footwear859.1...
Housing, water, electricity, gas and other2712.6...
Furnishing, household equipment and maintenance707.5...
Medical and pharmaceutical products100.6...
Transport3215.7...
Communications111.4...
Recreation and culture536.8...
Education21.0...
Catering services137.1...
Miscellaneous goods and services297.6...
TOTAL479100.011,000
The classification is adapted, with the exception of travel arrangements, to the COICOP/HICP classification. Some groups are not covered yet (e.g. travel arrangements) and the coverage of some groups (e.g. accommodation, rents, computers) is still incomplete.

Household consumption expenditure

Household consumption expenditure refers to all financial spending for the purchase of consumption goods and services in a given year. Acquisition approach is used. Goods acquired on credit terms are valued at cash purchase price. Second hand purchases are included, but income in kind is not included. Insurance payment for vehicles and other private insurance (insurance connected with dwelling) are included but life insurance payment is excluded. Contribution to health insurance and pension funds, income and other direct taxes are not included.

Sample selection

Current sample of items consists of 500 representative items. Prices are observed in approximately 500 outlets in 4 urban settlements selected in the past according to their geographical position and number of inhabitants. The outlets in each location are selected on the basis of the turnover data (total and by products) from the retail trade statistics supplemented with the price collectors' information and proposals. Two criterions are used in selection: the coverage of the whole city area and the representation of all types of outlets. The number of outlets by locality and by item differs. It depends on the number of inhabitants, turnover and number of outlets.

The representative items are selected judgementally by the price statistics staff. Items are selected on the basis of HBS, retail trade statistics, producers' and wholesaler' information, etc. The varieties are selected by price collectors within the limitation of the items' specifications. The weights of goods and services which are not priced are added to the weights of selected goods and services of the corresponding group.

Method of data collection

Prices are collected monthly, form the 1st to 25th day of the month by regularly employed price collectors from different types of outlets like supermarkets, department stores, market places, etc. In case of such items like rail fares, electricity, water supply, etc. prices are obtained from authorities concerned. Prices of agricultural products are observed twice a month in up to 5 outlets and in the open markets. Prices of manufactured products are observed once a month in 3 to 8 outlets. Prices of services are also observed once a month. Discounts, sale prices and second-hand prices are not taken into account.

Housing

Rent quotations are obtained from nine standard categories of dwellings in each of the four surveyed towns. The dwellings are portioned by age regardless of the level of comfort. The data are collected monthly. So as to facilitate housing cost comparison, calculations are based on one square metre. Owner-occupied dwellings are excluded from the index, but the weight for the rent partly includes it.

Specification of varieties

The specifications for durable goods (cars, electronic equipment, and household electrical appliances) are tight while the specifications for other goods are looser.

Substitution, quality changes

Annual updating of the list of goods and services and their specifications is the basic method for treating the changes in the quality of goods and services. In December each year the goods and services which are no longer representative are replaced with those which are gaining importance. Each December, there is a double price collection.

Price corrections due to quality changes are seldom done during the year. In most cases prices of the new product are directly compared with the old one. The decision for direct comparison of prices is based on the estimation that there are no (important) quality differences between the two products. For non-seasonal items, which are temporarily out of sale, as a rule, previous month price is carried forward for a month, e xceptionally even more. In the case of constant absence of certain non-seasonal item, it is replaced by a new one of equivalent quality, or its price (index) is imputed by taking into consideration prices of the same or similar products in another outlet. Prices are adjusted on the basis of changes of physical characteristics (weight, size).

Seasonal items

Fresh fruit and vegetable seasonal fluctuation are accounted for by taking into consideration the weighted arithmetic average of changes in prices of available fruit and vegetable. The weights do not change; they are constant during the year. In case of seasonal clothing, the last recorded price is carried forward until new collection is on sale.

Computation

The index is computed according to the modified Laspeyres formula. Weights from the reference weighting period are annually harmonised with prices of December of each year and normalised to 10,000. December of each year is thus the price reference period, one of the index reference periods and the linking month for the calculation of other derived indices (current month over previous month, same month of the previous year, average of the previous year, etc.). The present CPI series is linked through December of each year with the old series which was based on the basket from 1990, and transferred to the index base 1992=100. Indices based on 1992=100 are chain indices.

Elementary aggregate indices are calculated as the ratio between the current and base period average prices. Average prices of individual items are calculated as weighted arithmetic mean of average prices in four towns. Average prices for towns are calculated as simple arithmetic mean. Individual item indexes are calculated by dividing the average prices in current period with the average prices in the base period. The general index is weighted average of individual indexes. The general annual index and individual annual indexes are calculated as arithmetical average of 12 monthly indexes.

Other information

None.

Organisation and publication

Price Department of Statistical Office of the Republic of Slovenia Statisticne informacije (Statistical Information)

On Internet web site: http://www.sigov.si/zrs