EUROPEAN COMMISSION Brussels, 14.12.2020 COM(2020) 810 final REPORT FROM THE COMMISSION TO THE EUROPEAN PARLIAMENT AND THE COUNCIL evaluating the main findings of the pilot studies established under Regulation (EU) 2016/792 on harmonised indices of consumer prices and the house price index



1.Background Regulation (EU) 2016/792 of the European Parliament and of the Council on harmonised indices of consumer prices and the house price index was adopted in May 2016. This Regulation lays down a common framework for the development, production and dissemination of the Harmonised Index of Consumer Prices (HICP), the Harmonised Index of Consumer Prices at Constant Tax rates (HICP-CT), the Owner-Occupied Housing Price Index (OOHPI) and the House Price Index (HPI). These four indices together are referred to as the ‘harmonised indices’. Article 8 of Regulation (EU) 2016/792 makes it possible for the Commission to launch pilot studies, to be carried out on a voluntary basis by Member States, whenever improved basic information is required for the compilation of the harmonised indices, or when the need for improved comparability of the harmonised indices is identified. The Union’s general budget shall contribute to the financing of such pilot studies, where appropriate. These studies shall assess the feasibility of obtaining improved basic information or adopting new methodological approaches. The results of the pilot studies shall be evaluated by the Commission (Eurostat) in close cooperation with Member States and the main users of the harmonised indices, taking into account the benefits of having improved basic information or new methodological approaches relative to the additional costs of production of harmonised indices. The Commission shall submit a report to the European Parliament and the Council evaluating, if applicable, the main findings of the pilot studies by 31 December 2020 and every 5 years thereafter. This report fulfils this obligation. 2.Pilot studies conducted under Regulation (EU) 2016/792 Since the adoption of Regulation (EU) 2016/792, two rounds of pilot studies have been completed, supported by grants from the Union’s general budget for 2016 and 2017. Further rounds have been launched in subsequent years, but the studies funded under these rounds are ongoing and cannot yet be evaluated. 2.1. Pilot studies based on the 2016 budget A call for proposals was launched in 2016, covering the following objectives: Objective A: Automatic linking of GTIN codes/shop-specific codes to ECOICOP Objective B: Implementing scanner data from supermarkets or other retailers Objective C: Development of new methodologies for processing scanner data or other transaction data Objective D: Web scraping as a source for the HICP Objective E: Improvement of the compilation of expenditure weights for the HICP, including weights for internet purchases The first three objectives aimed to study various technical aspects related to the use of improved basic information derived from scanner data from supermarkets or other retailers. Another new source for improved basic information is data collected automatically from the internet (‘web scraping’), which is covered by the fourth objective. These objectives also support methodological studies that improve the comparability of the harmonised indices regarding the processing of these new data sources. The fifth objective aims for better comparability between countries and access to improved basic information on the compilation of expenditure weights, specifically given the rising share of purchases on the internet in many Member States. Grants were awarded to 15 pilot studies in 10 Member States and one EFTA country. Of the 15 studies, eight related to scanner data (objectives A, B and C), six to web scraping (objective D) and one to expenditure weights (objective E). The total budget committed for these projects was EUR 1 180 835.04. The 2016 call for proposals also included objectives related to real estate statistics. However, these studies covered subjects that were outside the scope of Regulation (EU) 2016/792 (quarterly house sales indicators, regional house price indices and commercial real estate indicators). The projects funded under these objectives are therefore not regarded as pilot studies in the sense of article 8 of Regulation (EU) 2016/792.