Eurostat methodology, inflation in July 2.5%/ Educational services and food with the highest growth

2024-08-21 16:00:00, Ekonomi CNA

Eurostat methodology, inflation in July 2.5%/ Educational services and food with

The inflation level in July measured according to the Eurostat methodology in the country was 2.5 percent, a level 0.4% point % higher than the national measurements of INSTAT.

According to data originating from the Harmonized Index of Consumer Prices in July 2024 it is 2.5%. The largest price increase of 4.1% is observed in the "Educational service" group, followed by the "Food and non-alcoholic beverages" groups with 3.6%, "Alcoholic beverages and tobacco" with 3.0%, "Clothing and shoes" ” with 2.7%, “Furniture, home appliances and maintenance” with 2.4%, “Miscellaneous goods and services” with 2.3%, “Health” and “Hotels, cafes and restaurants” with 2.1% each, "Rent, water, fuel and energy" with 1.8%, "Entertainment and culture" with 1.3%, "Transport" and "Communication" with 0.3% each.

In July 2024, the monthly change measured by the Harmonized Index of Consumer Prices is -0.2%. This change was mainly influenced by the price reduction of the groups "Food and non-alcoholic beverages" and "Entertainment and culture" by 0.7% each. On the other hand, the prices of the groups "Alcoholic beverages and tobacco" and "Furniture, household appliances and maintenance" increased by 0.4% each, followed by the groups "Clothing and shoes", "Educational services" and "Hotels, cafes and restaurants" with 0.3% each, "Communication" and "Miscellaneous goods and services" with 0.1%.

Romania, Belgium and Iceland had the highest inflation in July compared to other European countries at over 5%, while Finland and Latvia and Denmark had the lowest at less than 1%. The average inflation in Europe during the month of July was 2.8%.

In order to help the drafting of policies and to realize a better comparability with other countries, in coordination with Eurostat, INSTAT took steps towards the creation of a common methodological basis of the member states for the construction and use of the IHÇK .

Eurozone inflation is measured on the basis of the HICP indicator. The term "harmonized" underlines the fact that all EU countries apply the same methodology in measuring the relevant indicator.

Changes in the contribution from one indicator to another are related to the fact that the composition of the weights of goods within the group "Food and non-alcoholic beverages" is different from one indicator to another.

Thus, within this group, the subgroup "Fruit - Vegetables" has a greater weight in the IHÇK basket (12.84% of the total basket) than in the CPI basket (8.44% of the total).

Due to this change, the contribution of this group of goods to the total is equal to 2.5 percentage points in the case of the CPI indicator and 1.2 percentage points in the case of the CPI. Small changes in contributions are also observed in some other groups, but not to the magnitude of the change in the above case.

The items of the relevant baskets in the case of Albania, the CPI contains 332 items; IHÇK contains 331 items (imputed rent is not an element of the basket).

The CPI covers only private Albanian family expenses incurred within the territory of the country. The main source of data on expenditures (“weights”) is the Household Budget Survey (HFS); The IHÇK covers all expenses incurred within the territory of the country by Albanian families, as well as the expenses of resident and non-resident visitors.

The main source of data on expenditures ("weights") are the National Accounts "Final Household Consumption Monetary Expenditure (HFMCE)"./ Monitor Magazine