Regulation (EU) 2016/792 of the European Parliament and of the CouncilShow full title

Article 2 Definitions

For the purposes of this Regulation, the following definitions apply:

(1)

‘products’ means goods and services as defined in paragraph 3.01 of Annex A to Regulation (EU) No 549/2013 of the European Parliament and of the Council(1) (‘ESA 2010’);

(2)

‘consumer prices’ means the purchase prices paid by households to purchase individual products by means of monetary transactions;

(3)

‘house prices’ means the transaction prices of dwellings purchased by households;

(4)

‘purchase prices’ means the prices actually paid by purchasers for products, including any taxes less subsidies on the products, after the deduction of discounts from standard prices or charges, excluding interest or services 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;

(5)

‘administered prices’ means prices that are either directly set or influenced to a significant extent by the government;

(6)

‘harmonised index of consumer prices’ or ‘HICP’ means the comparable index of consumer prices produced by each Member State;

(7)

‘harmonised index of consumer prices at constant tax rates’ or ‘HICP-CT’ means the index that measures changes in consumer prices without the impact of changes in tax rates on products over the same period of time;

(8)

‘tax rate’ means a tax parameter and may be a certain percentage of the price or an absolute tax amount levied on a physical unit;

(9)

‘owner-occupied housing price index’ or ‘OOH price index’ means the index that measures changes in the transaction prices of dwellings new to the household sector and of other products that the households acquire in their role as owner-occupiers;

(10)

‘house price index’ or ‘HPI’ means the index that measures changes in the transaction prices of dwellings purchased by households;

(11)

‘sub-index of the HICP or the HICP-CT’ means the price index for any category of the European classification of individual consumption according to purpose (ECOICOP) as set out in Annex I;

(12)

‘harmonised indices’ means the HICP, the HICP-CT, the OOH price index and the HPI;

(13)

‘flash estimate of the HICP’ means an early estimate of the HICP provided by Member States whose currency is the euro that may be based on provisional information and, if necessary, appropriate modelling;

(14)

‘Laspeyres-type index’ means the price index that measures the average change in prices from the price reference period to a comparison period using expenditure shares from a period prior to the price reference period, and where the expenditure shares are adjusted to reflect the prices of the price reference period.

A ‘Laspeyres-type index’ is defined as:

The price of a product is denoted by p, the price reference period is denoted by 0, and the comparison period is denoted by t. Weights (w) are expenditure shares of a period (b) prior to the price reference period, and are adjusted to reflect the prices of the price reference period 0;

(15)

‘index reference period’ means the period for which the index is set to 100 index points;

(16)

‘price reference period’ means the period to which the price of the comparison period is compared; for monthly indices, the price reference period is December of the previous year, and for quarterly indices, the price reference period is the fourth quarter of the previous year;

(17)

‘basic information’ means data covering:

(a)

with reference to the HICP and the HICP-CT:

(i)

purchase prices of products which need to be taken into account in order to compute sub-indices in accordance with this Regulation;

(ii)

characteristics that determine the product price;

(iii)

information on taxes and excise duties levied;

(iv)

information as to whether a price is fully or partially administered; and

(v)

weights reflecting the level and structure of the consumption of the products concerned;

(b)

with reference to the OOH price index:

(i)

transaction prices of dwellings new to the household sector and of other products that the households acquire in their role as owner-occupiers which need to be taken into account to compute the OOH price index in accordance with this Regulation;

(ii)

characteristics which determine the dwelling price and the prices of other products that the households acquire in their role as owner-occupiers; and

(iii)

weights reflecting the level and structure of the relevant housing expenditure categories;

(c)

with reference to the HPI:

(i)

transaction prices of dwellings purchased by households which need to be taken into account to compute the HPI in accordance with this Regulation;

(ii)

characteristics which determine the dwelling price; and

(iii)

weights reflecting the level and structure of the relevant housing expenditure categories;

(18)

‘household’ means a household as referred to in points (a) and (b) of paragraph 2.119 of Annex A to ESA 2010, irrespective of nationality or residence status;

(19)

‘economic territory of the Member State’ means the economic territory as referred to in paragraph 2.05 of Annex A to ESA 2010, with the exception that the extraterritorial enclaves situated within the boundaries of the Member State are included and the territorial enclaves situated in the rest of the world are excluded;

(20)

‘household final monetary consumption expenditure’ means that part of final consumption expenditure incurred:

• by households,

• in monetary transactions,

• on the economic territory of the Member State,

• on products that are used for the direct satisfaction of individual needs or wants, as defined in paragraph 3.101 of Annex A to ESA 2010,

• in one or both of the time periods being compared;

(21)

‘significant change in the production method’ means a change that is estimated to affect the annual rate of change of a given harmonised index or part thereof in any period by more than:

(a)

0,1 percentage points for the all-items HICP, HICP-CT, OOH price index or HPI;

(b)

0,3, 0,4, 0,5 or 0,6 percentage points for any ECOICOP division, group, class or subclass (5-digit), respectively, for the HICP or the HICP-CT.

(1)

Regulation (EU) No 549/2013 of the European Parliament and of the Council of 21 May 2013 on the European system of national and regional accounts in the European Union (OJ L 174, 26.6.2013, p. 1).