Eurostat made a presentation on the Harmonized Index of Consumer Prices (HICP) in general and more particularly on the existing and new draft regulation on weights in the HICP.

The preparation of a price index for Ukraine following the harmonized HICP methodology may in general add to the credibility of the CPI of Ukraine and enhance the comparability with results from other European countries.

Compilation of a price index using HICP-methodology does not, however, preclude the compilation of a national CPI, based on national users needs and using best available national data sources.

It was stressed that a clear distinction should be made between the choice of goods and services to be included in the Price index on the one hand, and the choice of statistical methods and sources to determine the weights accordingly on the other hand.

"Household final monetary consumption expenditures" (HFMCE) is defined by regulation and must be covered by the HICP. This concept differs from the household consumption as defined both in Household Budget Survey (HBS) and in National Accounts (NA).

HFMCE weights can be measured starting form HBS and adjusting for the differences in concepts, but also starting from NA and making appropriate adjustments. The new draft weights regulation of the HICP proposes to make a yearly weights revision, starting from NA data. In many of the member states NA data are more frequently made and are more recent than HBS. Also they make use of a more comprehensive set of data sources, including HBS. The use of HBS and other data sources is advocated for the compilation of the more detailed weights structure of the HICP.