EXPLANATORY MEMORANDUM

1. CONTEXT OF THE PROPOSAL

The European Commission and the European Central Bank require inflation measures in the EU to be harmonised in order to ensure the good functioning of the European Union, and in particular to implement effective monetary policy.

Harmonised consumer price indices are essential for assessing and measuring:

· convergence in terms of price stability within the EU; and

· the results of euro area monetary policy, in terms of achieving the objective of price stability.

Harmonised inflation measures are also used for assessing national competitiveness as part of the Commission’s macroeconomic imbalance procedure.

For these purposes, consumer price indices need to be comparable across all countries and all product areas. They must be sufficiently detailed and be able to be produced within a reasonable timeframe. The inflation figures calculated from consumer price indices must constitute an objective and unbiased basis for decision making.

In addition, comparable and reliable consumer price indices are, together with other sources, a valuable input for deflating economic values such as salaries, rents, interest rates and National Accounts data. These estimated volume time series show the evolution of a given economic phenomenon without the impact of inflation and are an essential input for political and economic decisions.

In October 1995, a Council Regulation on harmonised indices of consumer prices (HICP) was drafted and adopted, followed by 20 implementing regulations in the following 17 years.

Standardised rules ensuring maximum comparability remain important for the main users of HICP, in particular the Commission and the European Central Bank, but certain parameters have changed since the adoption of the original framework:

· The development of the European Statistical System (ESS) has led to a much greater acceptance of the need for a harmonised approach to many of the methodological aspects relating to consumer price indices.

· The technical aspects of data collection and index compilation have changed dramatically due to the rapid rate of technological progress in recent years. Powerful information technology systems make it possible to adopt methods that would not have been considered as little as two decades ago: the advent of scanner data is revolutionising data collection practices and the use of various internet sources for prices is constantly developing.

· The Lisbon Treaty established a new comitology set-up, introducing delegated and implementing acts. This needs to be reflected in the legal framework.

These various changes all necessitate redrafting of the legislation on HICP so as to modernise and rationalise the legal basis and adapt it to today’s needs, both actual and potential. Reviewing the HICP Regulation gives stakeholders the chance to reflect on the existing rules and recommendations, to rationalise them and to focus on particular aspects according to their current relevance and the best interests of various types of users.

Many policy areas in which the EU plays an active role require information on events and developments affecting consumer price indices so that operational objectives can be formulated and progress evaluated. EU legislation also requires Eurostat to provide deflators of the highest possible quality, for which HICP are a valuable input. The indices must be timely, accurate, complete, coherent and comparable at EU level and between different product groups. Only by modernising the European legislation on HICP can these requirements be met.

The proposed HICP Regulation enshrines the principles of the European Statistics Code of Practice relating to commitment to quality, sound methodology, cost-effectiveness, relevance, accuracy, reliability, coherence and comparability.

2. RESULTS OF CONSULTATIONS WITH INTERESTED PARTIES AND IMPACT ASSESSMENTS

The draft HICP Regulation was discussed by expert groups made up of both producers of statistics, in particular national statistical institutes, and users of statistics, including the European Commission, the European Central Bank and national central banks. The European Statistical System Committee was consulted.

An impact assessment was not deemed necessary.

3. LEGAL ELEMENTS OF THE PROPOSAL

The objective of this proposal is to establish a common legal framework for the production of harmonised indices by Member States, which involves collecting, compiling, processing and submitting harmonised consumer price indices. These are necessary for the systematic production of inflation measures in the European Union.

This proposal simplifies and clarifies the requirements for the compilation of these indices. In particular, it:

· provides a new general framework applying to well-defined categories of product groups;

· establishes a clear and well-defined scope of application;

· maintains specific measures for specific domains such as health, education, social protection and insurance;

· addresses possible differences in interpretation and difficulties for data suppliers in applying the rules;

· ensures that similar product groups are treated in the same way across the EU;

· eliminates provisions that have become redundant; and

· clarifies provisions that have led to misinterpretations in the past.

Where further specification or uniform conditions for implementation are needed, the Regulation provides for the possibility of adopting delegated or implementing acts in accordance with Articles 290 and 291 of the Treaty on the Functioning of the European Union (TFEU).

In particular, in order to ensure full comparability of consumer price indices, uniform conditions are needed for:

· the breakdown of HICP by European classification of individual consumption according to purpose (ECOICOP) categories;

· the methodology used in producing harmonised indices;

· the meaning and use of statistical units;

· the weights used in calculating harmonised indices and metadata on the weights;

· the annual calendar for transmitting harmonised indices and sub-indices;

· data and metadata exchange standards;

· conditions for revising data;

· basic information and methods to be used, based on the evaluation of pilot studies; and

· technical quality assurance requirements relating to the content of annual quality reports, the deadline for providing these reports to Eurostat and the structure of the inventory.

In accordance with Article 291 of the TFEU, the proposed Regulation therefore confers implementing powers on the Commission.

In accordance with Article 290 of the TFEU, the proposed Regulation delegates to the Commission the power to adopt non-legislative acts of general application to supplement or amend non-essential parts of the Regulation. This will allow the Commission to:

· ensure comparability at international level of the classification of individual consumption according to purpose (COICOP) used for the breakdown of HICP;

· establish a threshold below which there is no obligation to provide sub-indices of harmonised indices; and

· establish a list of sub-indices that Member States are not obliged to produce.

The Commission should ensure that these delegated acts do not impose a significant additional administrative burden on Members States.

The proposal for a revised HICP Regulation seeks to create a single legal measure covering all uniform conditions. There are currently 20 different implementing regulations. Under the new Regulation these would be combined into a single one, which would give stakeholders and Member States greater clarity and make administration easier and more effective. Simplifying requirements and their implementation in this way is one of the main objectives of the proposed strategy for a new legal framework for HICP.

4. BUDGETARY IMPLICATION

None for the EU budget.

2014/0346 (COD)

Proposal for a

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

on harmonised indices of consumer prices and repealing Regulation (EC) No 2494/95

(Text with EEA relevance)

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

Having regard to the Treaty on the Functioning of the European Union, and in particular Article 338(1) thereof,

Having regard to the proposal from the European Commission,

After transmission of the draft legislative act to the national parliaments,

Having regard to the opinion of the European Central Bank [1],

Acting in accordance with the ordinary legislative procedure,

Whereas:

(1) Harmonised indices of consumer prices (HICP) are designed to measure inflation in a harmonised manner across Member States. The Commission and the European Central Bank use the HICP in their assessment of price stability in Member States under Article 140 of the Treaty on the Functioning of the European Union (the Treaty).

(2) The European System of Central Banks (ESCB) uses the HICP as an index in order to measure the achievement of the ESCB’s price stability objective under Article 127(1) of the Treaty, which is of particular relevance for the definition and implementation of the monetary policy of the Union under Article 127(2) of the Treaty.

(3) Council Regulation (EC) No 2494/95[2] established a common framework for setting up harmonised indices of consumer prices. This legal framework needs to be adapted to current needs and technical progress.

(4) This Regulation takes into account the Commission's better regulation programme and, in particular, the Commission Communication on smart regulation in the Union[3]. In the statistical field, the Commission has set as a priority the simplification and improvement of the regulatory environment in statistics[4].

(5) HICP should be broken down by categories of the European classification of individual consumption according to purpose (ECOICOP). This classification should ensure that all European statistics relating to private consumption are consistent and comparable. The ECOICOP should also be consistent with the UN COICOP, which is the international standard classifying individual consumption according to purpose, and should therefore be adapted to changes of the UN COICOP.

(6) The regular HICP are based on observed prices, which also include taxes on products. Hence, inflation is affected by changes to tax rates on products. For inflation analysis and for convergence assessment in Member States, information also needs to be collected on the impact of tax changes on inflation. To this end, HICP should additionally be calculated on the basis of constant tax rate prices.

(7) Establishing price indices for dwellings and in particular for owner-occupied housing (OOH indices) is an important step towards improving the relevance and comparability of HICP. House price indices are a necessary basis for compiling OOH indices. In addition, house price indices are important indicators in their own right.

(8) The reference period of price indices should be updated at regular intervals. Rules for common index reference periods of harmonised indices and their sub-indices integrated at different points in time should be established in order to ensure that the resulting indices are comparable and relevant.

(9) In order to enhance the gradual harmonisation of consumer price indices, pilot studies should be launched to assess the feasibility of using additional basic information or applying new methodological approaches.

(10) Guidance on the various stages of producing high-quality harmonised indices should be given in a methodological manual in order to help Member States to produce comparable indices of consumer prices. The methodological manual should be established by the Commission (Eurostat) in close cooperation with Member States within the European Statistical System and regularly updated. In the annual HICP inventory referred to in Article 9(2)(b) of this Regulation, Member States should inform the Commission (Eurostat) about divergences, if any, between the statistical methods used and those recommended in the methodological manual.

(11) The Commission (Eurostat) should verify the sources and methods used by Member States to calculate harmonised indices and should monitor the implementation of the legal framework by Member States. For this purpose the Commission (Eurostat) should maintain a regular dialogue with the Member States’ statistical authorities.

(12) Background information is essential for assessing whether the detailed harmonised indices provided by the Member States are sufficiently comparable. In addition, transparent compilation methods and practices used in Member States help all stakeholders to understand the harmonised indices and further improve their quality. A set of rules for reporting harmonised metadata should therefore be established.

(13) In order to ensure the quality of harmonised indices, confidential data and metadata should be exchanged between the Commission (Eurostat), national central banks and the European Central Bank in accordance with Regulation (EC) No 223/2009 of the European Parliament and of the Council.[5].

(14) Since the objective of the present Regulation, namely the creation of common statistical standards for harmonised indices, cannot be sufficiently achieved by the Member States but can be better achieved at Union level, the Union may adopt measures, in accordance with the principle of subsidiarity as set out in Article 5 of the Treaty on European Union. In accordance with the principle of proportionality, as set out in the same Article, this Regulation does not go beyond what is necessary in order to achieve this objective.

(15) In order to ensure comparability at international level of the classification of individual consumption according to purpose used for the breakdown of HICP and to assure adaptation to changes of UN COICOP, to establish a threshold below which there is no obligation to provide sub-indices of harmonised indices and to establish a list of sub-indices that need not be produced by the Member States, the power to adopt acts in accordance with Article 290 of the Treaty on the Functioning of the European Union should be delegated to the Commission in respect of harmonised indices. It is of particular importance that the Commission carries out appropriate consultations during its preparatory work, including at expert level. The Commission, when preparing and drawing up delegated acts, should ensure simultaneous, timely and appropriate transmission of relevant documents to the European Parliament and the Council.

(16) In order to ensure full comparability of consumer price indices, uniform conditions are needed for the breakdown of the HICP by ECOICOP categories, for the applied methodology in producing harmonised indices, for the information provided by statistical units, for providing weights and metadata on the weights, for the establishment of an annual calendar for the transmission of the harmonised indices and sub-indices, for the data and metadata exchange standards, for the uniform conditions for revisions, for improved basic information or improved methods based on the evaluation of pilot studies and for technical quality assurance requirements regarding the content of annual quality reports, the deadline for providing the report to the Commission (Eurostat) and the structure of the inventory. In order to ensure such uniform conditions for the implementation of this Regulation, implementing powers should be conferred on the Commission. Those powers should be exercised in accordance with Regulation (EU) No 182/2011 of the European Parliament and of the Council.[6]

(17) In adopting implementing measures and delegated acts in accordance with this Regulation, the Commission should take the utmost account of cost-effectiveness.

(18) In the context of Article 7 of Regulation (EC) No 223/2009, the European Statistical System Committee has been asked to provide its professional guidance.

(19) Regulation (EC) No 2494/95 should be repealed.

HAVE ADOPTED THIS REGULATION:

Article 1 Subject matter

This Regulation lays down a common framework for the development, production and dissemination of harmonised indices of consumer prices (HICP) and of housing prices (HPI) at Union, national and sub-national level.

Article 2 Definitions

For the purposes of this Regulation the following definitions apply:

(a) ‘Development of statistics’ means establishing and improving statistical methods, standards and procedures used in the production and dissemination of statistics, with the aim of designing new statistical measures and indicators.

(b) ‘Production of statistics’ means all steps involved in compiling statistics, including collecting, storing, processing and analysing statistics.

(c) ‘dissemination of statistics’ means the activity of making statistics, statistical analyses and non-confidential information accessible to users;

(d) ‘products’ means goods and services as defined in Annex A, point 3.01 of Regulation (EU) No 549/2013 of the European Parliament and of the Council [7] (hereinafter referred to as ‘ESA 2010’);

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

(f) ‘purchase price’ means the price actually paid by the purchaser for products, including any taxes less subsidies on the products, after deduction of discounts for bulk or off-peak purchases 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;

(g) ‘harmonised indices of consumer prices (HICP)’ means the comparable indices of consumer prices produced by each Member State;

(h) ‘harmonised indices of consumer prices at constant tax rates (HICP-CT)’ means indices that measure changes in consumer prices over a period of time excluding the impact of changes in tax rates on products during that period of time;

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

(j) ‘owner-occupied housing price index (OOH index)’ means an 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;

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

(l) ‘sub-index of the HICP’ means a price index for any of the categories of the European classification of individual consumption according to purpose (hereinafter referred to as ‘ECOICOP’) as established in the Annex;

(m) ‘harmonised indices’ means the HICP, HICP-CT, OOH indices and HPI;

(n) ‘Laspeyres index’ means a price index of the form

where P is the relative index of the price levels in two periods, Q are the quantities consumed, t0 is the base period and tn the period for which the index is computed;

(o) ‘Laspeyres-type index’ means an index that measures average price changes on the basis of unchanged expenditure compared to the base period, i.e. holding the consumption pattern of households constant as of the base period.

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

(q) ‘basic information’ with reference to HICP and HICP-CT means data covering

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

– all characteristics that determine the product price and any other characteristics relevant to the consumer purpose in question,

– information on taxes and excise duties levied,

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

– all weights reflecting the level and structure of the consumption of the products concerned.

(r) ‘basic information’ with reference to OOH indices and HPI means data covering

– all transaction prices of dwellings purchased by households which need to be taken into account to compute HPI indices in accordance with this Regulation,

– all characteristics which determine the dwelling price or other relevant characteristics.

(s) 'household' means a household as defined in Annex A, paragraph 2.119 (a) and (b) of ESA 2010, irrespective of nationality or residence status;

(t) 'economic territory of the Member State' means the territory as defined in Annex A, paragraph 2.05 of ESA 2010, with the exception that the extraterritorial enclaves situated within the boundaries of the country are included and the territorial enclaves situated in the rest of the world are excluded;

(u) ‘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 Annex A paragraph 3.101 of ESA 2010,

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

(v) ‘significant change of 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:

– 0.1 percentage points for the all-items HICP or the OOH or HPI,

– 0.3, 0.4, 0.5 or 0.6 percentage points for any ECOICOP division, group, class or sub-class (5-digit) respectively.

Article 3 Compilation of the harmonised indices

1. Member States shall provide the Commission (Eurostat) with all harmonised indices as defined in Article 2(m).

2. Harmonised indices shall be compiled using a Laspeyres-type formula.

3. The HICP and HICP-CT shall be based on the price changes and weights of products included in household final monetary consumption expenditure.

4. The HICP shall not cover transactions between households, except in the case of rentals paid by tenants to private landlords, where the latter act as market producers of services purchased by households (tenants).

5. HICP sub-indices shall be compiled for the categories of ECOICOP. Uniform conditions for the breakdown of the HICP by ECOICOP categories shall be adopted by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 11(2).

Article 4 Comparability of the harmonised indices

1. For HICP or OOH indices to be considered comparable, any difference across countries at all levels of detail shall only reflect differences in price changes or expenditure patterns.

2. Any sub-indices of the harmonised indices that deviate from the concepts or methods of this Regulation shall be deemed comparable if they result in an index that is estimated to differ systematically by:

(a) less than or equal to 0.1 per cent on average over one year against the previous year from an index compiled following the methodological approach of this Regulation, in the case of HICP;

(b) less than or equal to one per cent on average over one year against the previous year from an index compiled following the methodological approach of this Regulation, in the case of OOH and HPI.

Where such a calculation is not possible, the consequences of using a methodology which deviates from the concepts or methods of this Regulation must be set out in detail.

3. The Commission shall be empowered to adopt delegated acts in accordance with Article 10 for the modification of the Annex in order to ensure comparability of the harmonised indices at international level.

4. In order to ensure uniform conditions, the appropriate methodology for producing comparable harmonised indices shall be defined by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 11(2).

Article 5 Data requirements

1. Member States shall collect basic information representative of their country for harmonised indices and their sub-indices.

2. The information shall be obtained from statistical units as defined in Council Regulation (EEC) No 696/93 [8].

3. The statistical units that provide information on products included in household final monetary consumption expenditure shall cooperate in the collection or provision of basic information as required. The statistical units shall give accurate and complete information, including in electronic form if requested. On request of the national bodies responsible for compiling official statistics, the statistical units shall provide information in electronic form, such as scanner data, and at the level of detail necessary in order to produce harmonised indices and to evaluate compliance with the comparability requirements and the quality of the harmonised indices. Uniform conditions for providing this information shall be established by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 11(2).

4. The harmonised indices and their sub-indices shall be scaled to the common index reference period 2015. This scaling shall take effect with the index for January 2016.

5. The harmonised indices and their sub-indices shall be rescaled to a new common index reference period in cases of a major methodological change of harmonised indices or every 10 years starting from 2015. The rescaling to the new index reference period shall take effect with the index for January of the following calendar year. The Commission shall be empowered to adopt delegated acts in accordance with Article 10 to establish detailed rules on rescaling of harmonised indices linked to major methodological changes.

6. In order not to impose an unnecessary burden on Member States and to the extent that the sub-indices of harmonised indices are only significant above a certain threshold, the Commission shall be empowered to adopt delegated acts in accordance with Article 10 in order to establish a threshold below which there is no obligation to provide those sub-indices.

7. The Commission shall be empowered to adopt delegated acts in accordance with Article 10 in order to establish a list of sub-indices of ECOICOP that need not be produced by the Member States, either because they do not cover private consumption or because the degree of methodological harmonisation is not sufficient.

Article 6 Frequency

1. Member States shall provide the Commission (Eurostat) with HICP, HICP-CT and their respective sub-indices at monthly intervals, including those sub-indices produced at longer intervals.

2. Member States shall provide the Commission (Eurostat) with OOH indices and HPI at quarterly intervals. They may be provided at monthly intervals on a voluntary basis.

3. Member States are not obliged to produce sub-indices at monthly or quarterly intervals where less frequent data collection fulfils the comparability requirements of Article 4. Member States shall inform the Commission (Eurostat) of the ECOICOP and OOH categories that they intend to collect at intervals less frequent than, respectively, monthly or quarterly.

4. Each year, Member States shall review and update sub-index weights for the harmonised indices. Uniform conditions for providing weights and metadata on the weights shall be established by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 11(2).

Article 7 Deadlines, exchange standards and revisions

1. Member States shall provide harmonised indices and all sub-indices to the Commission (Eurostat) no later than 20 calendar days after the end of the reference month for monthly series and 85 calendar days after the end of the reference quarter for quarterly series.

2. Member States shall provide the Commission (Eurostat) with the data and metadata required by this Regulation in accordance with data and metadata exchange standards.

3. Sub-indices of harmonised indices that have already been published may be revised.

4. The establishment of an annual calendar for submitting harmonised indices and sub-indices referred to in paragraph 1, the data and metadata exchange standards referred to in paragraph 2, and the uniform conditions for revision as referred to in paragraph 3 shall be specified in detail by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 11(2).

Article 8 Pilot studies

1. Whenever improved basic information is required for the compilation of harmonised indices, or when the need for improved comparability of indices is identified in the methods referred to in Article 4(2), the Commission (Eurostat) may launch pilot studies to be carried out on a voluntary basis by the Member States.

2. The pilot studies shall assess the feasibility of obtaining improved basic information or adopting new methodological approaches.

3. The results of the pilot studies shall be evaluated by the Commission (Eurostat) in close cooperation with the Member States and main users of harmonised indices, taking into account the benefits of having improved price information relative to the additional costs of collection and compilation.

4. Based on the evaluation of the pilot studies, improved basic information or improved methods shall be introduced by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 11(2).

Article 9 Quality assurance

1. Member States shall ensure the quality of the harmonised indices provided. For the purposes of this Regulation, the standard quality criteria set out in Article 12(1) of Regulation (EC) No 223/2009 shall apply.

2. Member States shall provide the Commission (Eurostat) with:

(a) an annual standard quality report covering the quality criteria referred to in Article 12(1) of Regulation (EC) No 223/2009;

(b) an annual inventory with details of data sources, definitions and methods used, including details of any divergences between the statistical methods used and those recommended in the methodological manual; and

(c) further related information at the level of detail necessary to evaluate compliance with the comparability requirements and the quality of the harmonised indices if requested by the Commission (Eurostat).

3. If a Member State intends to introduce a significant change in the production methods of the harmonised indices or part thereof, the Member State shall inform the Commission (Eurostat) at the latest three months before any such change would enter into force. The Member State shall provide the Commission (Eurostat) with a quantification of the impact of the change.

4. Technical quality assurance requirements regarding the content of the standard annual quality report, the deadline for providing the report to the Commission (Eurostat) and the structure of the inventory shall be established by means of implementing acts. Those implementing acts shall be adopted in accordance with the examination procedure referred to in Article 11(2).

Article 10 Exercise of the delegation

1. The power to adopt delegated acts is conferred on the Commission subject to the conditions laid down in this Article.

2. The delegation of powers referred to in Articles 4(3) and 5(5) to (7) shall be conferred for an indeterminate period of time.

3. The delegation of powers referred to in Articles 4(3) and 5(5) to (7) may be revoked at any time by the European Parliament or by the Council. A decision to revoke shall put an end to the delegation of the power specified in that decision. It shall take effect the day following the publication of the decision in the Official Journal of the European Union or at a later date specified therein. It shall not affect the validity of the delegated acts already in force.

4. As soon as it adopts a delegated act, the Commission shall notify it simultaneously to the European Parliament and to the Council.

5. A delegated act adopted pursuant to Articles 4(4) and 5(5) to (7) shall enter into force only if no objection has been expressed by either the European Parliament or the Council within a period of two months of notification of that act to the European Parliament and the Council or if, before the expiry of that period, the European Parliament and the Council have both informed the Commission that they will not object. That period shall be extended by two months at the initiative of the European Parliament or the Council.

Article 11 Committee

1. The Commission shall be assisted by the European Statistical System Committee established by Regulation (EC) No 223/2009. That Committee shall be a committee within the meaning of Regulation (EU) No 182/2011.

2. Where reference is made to this paragraph, Article 5 of Regulation (EU) No 182/2011 shall apply.

Article 12 Repeal

1. Without prejudice to paragraph 2, Member States shall continue to provide harmonised indices in accordance with Regulation (EC) No 2494/95 up to the transmissions of data referring to 2015.

2. Regulation (EC) No 2494/95 is repealed with effect from 1 January 2016. References to the repealed Regulation shall be construed as being made to this Regulation.

Article 13 Entry into force

This Regulation shall enter into force on the twentieth day following that of its publication in the Official Journal of the European Union.

It shall take effect for the first time to data referring to January 2016.

This Regulation shall be binding in its entirety and directly applicable in all Member States.

Done at Brussels,

For the European Parliament For the Council

The President The President

[1] OJ C […].

[2] Council Regulation (EC) No 2494/95 of 23 October 1995 concerning harmonised indices of consumer prices (OJ L 257, 27.10.1995, p.1).

[3] Communication from the Commission to the European Parliament, the Council, the Economic and Social Committee and the Committee of the Regions 'Smart Regulation in the European Union', COM(2010) 543.

[4] Communication from the Commission to the European Parliament and the Council on ‘the production method of EU statistics: a vision for the next decade’, COM(2009) 404 final.

[5] Regulation (EC) No 223/2009 of the European Parliament and of the Council of 11 March 2009 on European Statistics (OJ L 87, 31.3.2009, p.164).

[6] Regulation (EU) No 182/2011 of the European Parliament and of the Council of 16 February 2011 laying down the rules and general principles concerning mechanisms for control by Member States of the Commission’s exercise of implementing powers (OJ L 55, 28.2.2011, p. 13).

[7] 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).

[8] Council Regulation (EEC) No 696/93 of 15 March 1993 on the statistical units for the observation and analysis of the production system in the Community (OJ L 76, 30.3.1993, p. 1).

ANNEX

European classification of individual consumption according to purpose (ECOICOP)

01 FOOD AND NON-ALCOHOLIC BEVERAGES

01.1 Food

01.1.1 Bread and cereals

01.1.1.1 Rice

01.1.1.2 Flours and other cereals

01.1.1.3 Bread

01.1.1.4 Other bakery products

01.1.1.5 Pizza and quiche

01.1.1.6 Pasta products and couscous

01.1.1.7 Breakfast cereals

01.1.1.8 Other cereal products

01.1.2 Meat

01.1.2.1 Beef and veal

01.1.2.2 Pork

01.1.2.3 Lamb and goat

01.1.2.4 Poultry

01.1.2.5 Other meats

01.1.2.6 Edible offal

01.1.2.7 Dried, salted or smoked meat

01.1.2.8 Other meat preparations

01.1.3 Fish and seafood

01.1.3.1 Fresh or chilled fish

01.1.3.2 Frozen fish

01.1.3.3 Fresh or chilled seafood

01.1.3.4 Frozen seafood

01.1.3.5 Dried, smoked or salted fish and seafood

01.1.3.6 Other preserved or processed fish and seafood-based preparations

01.1.4 Milk, cheese and eggs

01.1.4.1 Fresh whole milk

01.1.4.2 Fresh low fat milk

01.1.4.3 Preserved milk

01.1.4.4 Yoghurt

01.1.4.5 Cheese and curd

01.1.4.6 Other milk products

01.1.4.7 Eggs

01.1.5 Oils and fats

01.1.5.1 Butter

01.1.5.2 Margarine and other vegetable fats

01.1.5.3 Olive oil

01.1.5.4 Other edible oils

01.1.5.5 Other edible animal fats

01.1.6 Fruit

01.1.6.1 Fresh or chilled fruit

01.1.6.2 Frozen fruit

01.1.6.3 Dried fruit and nuts

01.1.6.4 Preserved fruit and fruit-based products

01.1.7 Vegetables

01.1.7.1 Fresh or chilled vegetables other than potatoes and other tubers

01.1.7.2 Frozen vegetables other than potatoes and other tubers

01.1.7.3 Dried vegetables, other preserved or processed vegetables

01.1.7.4 Potatoes

01.1.7.5 Crisps

01.1.7.6 Other tubers and products of tuber vegetables

01.1.8 Sugar, jam, honey, chocolate and confectionery

01.1.8.1 Sugar

01.1.8.2 Jams, marmalades and honey

01.1.8.3 Chocolate

01.1.8.4 Confectionery products

01.1.8.5 Edible ices and ice cream

01.1.8.6 Artificial sugar substitutes

01.1.9 Food products n.e.c.

01.1.9.1 Sauces, condiments

01.1.9.2 Salt, spices and culinary herbs

01.1.9.3 Baby food

01.1.9.4 Ready-made meals

01.1.9.9 Other food products n.e.c.

01.2 Non-alcoholic beverages

01.2.1 Coffee, tea and cocoa

01.2.1.1 Coffee

01.2.1.2 Tea

01.2.1.3 Cocoa and powdered chocolate

01.2.2 Mineral waters, soft drinks, fruit and vegetable juices

01.2.2.1 Mineral or spring waters

01.2.2.2 Soft drinks

01.2.2.3 Fruit and vegetable juices

02 ALCOHOLIC BEVERAGES, TOBACCO AND NARCOTICS

02.1 Alcoholic beverages

02.1.1 Spirits

02.1.1.1 Spirits and liqueurs

02.1.1.2 Alcoholic soft drinks

02.1.2 Wine

02.1.2.1 Wine from grapes

02.1.2.2 Wine from other fruits

02.1.2.3 Fortified wines

02.1.2.4 Wine-based drinks

02.1.3 Beer

02.1.3.1 Lager beer

02.1.3.2 Other alcoholic beer

02.1.3.3 Low and non-alcoholic beer

02.1.3.4 Beer-based drinks

02.2 Tobacco

02.2.0 Tobacco

02.2.0.1 Cigarettes

02.2.0.2 Cigars

02.2.0.3 Other tobacco products

02.3 Narcotics

02.3.0 Narcotics

02.3.0.0 Narcotics

03 CLOTHING AND FOOTWEAR

03.1 Clothing

03.1.1 Clothing materials

03.1.1.0 Clothing materials

03.1.2 Garments

03.1.2.1 Garments for men

03.1.2.2 Garments for women

03.1.2.3 Garments for infants (0 to 2 years) and children (3 to 13 years)

03.1.3 Other articles of clothing and clothing accessories

03.1.3.1 Other articles of clothing

03.1.3.2 Clothing accessories

03.1.4 Cleaning, repair and hire of clothing

03.1.4.1 Cleaning of clothing

03.1.4.2 Repair and hire of clothing

03.2 Footwear

03.2.1 Shoes and other footwear

03.2.1.1 Footwear for men

03.2.1.2 Footwear for women

03.2.1.3 Footwear for infants and children

03.2.2 Repair and hire of footwear

03.2.2.0 Repair and hire of footwear

04 HOUSING, WATER, ELECTRICITY, GAS AND OTHER FUELS

04.1 Actual rentals for housing

04.1.1 Actual rentals paid by tenants

04.1.1.0 Actual rentals paid by tenants

04.1.2 Other actual rentals

04.1.2.1 Actual rentals paid by tenants for secondary residences

04.1.2.2 Garage rentals and other rentals paid by tenants

04.2 Imputed rentals for housing

04.2.1 Imputed rentals of owner-occupiers

04.2.1.0 Imputed rentals of owner-occupiers

04.2.2 Other imputed rentals

04.2.2.0 Other imputed rentals

04.3 Maintenance and repair of the dwelling

04.3.1 Materials for the maintenance and repair of the dwelling

04.3.1.0 Materials for the maintenance and repair of the dwelling

04.3.2 Services for the maintenance and repair of the dwelling

04.3.2.1 Services of plumbers

04.3.2.2 Services of electricians

04.3.2.3 Maintenance services for heating systems

04.3.2.4 Services of painters

04.3.2.5 Services of carpenters

04.3.2.9 Other services for maintenance and repair of the dwelling

04.4 Water supply and miscellaneous services relating to the dwelling

04.4.1 Water supply

04.4.1.0 Water supply

04.4.2 Refuse collection

04.4.2.0 Refuse collection

04.4.3 Sewage collection

04.4.3.0 Sewage collection

04.4.4 Other services relating to the dwelling n.e.c.

04.4.4.1 Maintenance charges in multi-occupied buildings

04.4.4.2 Security services

04.4.4.9 Other services related to dwelling

04.5 Electricity, gas and other fuels

04.5.1 Electricity

04.5.1.0 Electricity

04.5.2 Gas

04.5.2.1 Natural gas and town gas

04.5.2.2 Liquefied hydrocarbons (butane, propane, etc.)

04.5.3 Liquid fuels

04.5.3.0 Liquid fuels

04.5.4 Solid fuels

04.5.4.1 Coal

04.5.4.9 Other solid fuels

04.5.5 Heat energy

04.5.5.0 Heat energy

05 FURNISHINGS, HOUSEHOLD EQUIPMENT AND ROUTINE HOUSEHOLD MAINTENANCE

05.1 Furniture and furnishings, carpets and other floor coverings

05.1.1 Furniture and furnishings

05.1.1.1 Household furniture

05.1.1.2 Garden furniture

05.1.1.3 Lighting equipment

05.1.1.9 Other furniture and furnishings

05.1.2 Carpets and other floor coverings

05.1.2.1 Carpets and rugs

05.1.2.2 Other floor coverings

05.1.2.3 Services of laying of fitted carpets and floor coverings

05.1.3 Repair of furniture, furnishings and floor coverings

05.1.3.0 Repair of furniture, furnishings and floor coverings

05.2 Household textiles

05.2.0 Household textiles

05.2.0.1 Furnishing fabrics and curtains

05.2.0.2 Bed linen

05.2.0.3 Table linen and bathroom linen

05.2.0.4 Repair of household textiles

05.2.0.9 Other household textiles

05.3 Household appliances

05.3.1 Major household appliances whether electric or not

05.3.1.1 Refrigerators, freezers and fridge-freezers

05.3.1.2 Clothes washing machines, clothes drying machines and dish washing machines

05.3.1.3 Cookers

05.3.1.4 Heaters, air conditioners

05.3.1.5 Cleaning equipment

05.3.1.9 Other major household appliances

05.3.2 Small electric household appliances

05.3.2.1 Food processing appliances

05.3.2.2 Coffee machines, tea makers and similar appliances

05.3.2.3 Irons

05.3.2.4 Toasters and grills

05.3.2.9 Other small electric household appliances

05.3.3 Repair of household appliances

05.3.3.0 Repair of household appliances

05.4 Glassware, tableware and household utensils

05.4.0 Glassware, tableware and household utensils

05.4.0.1 Glassware, crystal-ware, ceramic ware and chinaware

05.4.0.2 Cutlery, flatware and silverware

05.4.0.3 Non-electric kitchen utensils and articles

05.4.0.4 Repair of glassware, tableware and household utensils

05.5 Tools and equipment for house and garden

05.5.1 Major tools and equipment

05.5.1.1 Motorized major tools and equipment

05.5.1.2 Repair, leasing and rental of major tools and equipment

05.5.2 Small tools and miscellaneous accessories

05.5.2.1 Non-motorized small tools

05.5.2.2 Miscellaneous small tool accessories

05.5.2.3 Repair of non-motorized small tools and miscellaneous accessories

05.6 Goods and services for routine household maintenance

05.6.1 Non-durable household goods

05.6.1.1 Cleaning and maintenance products

05.6.1.2 Other non-durable small household articles

05.6.2 Domestic services and household services

05.6.2.1 Domestic services by paid staff

05.6.2.2 Cleaning services

05.6.2.3 Hire of furniture and furnishings

05.6.2.9 Other domestic services and household services

06 HEALTH

06.1 Medical products, appliances and equipment

06.1.1 Pharmaceutical products

06.1.1.0 Pharmaceutical products

06.1.2 Other medical products

06.1.2.1 Pregnancy tests and mechanical contraceptive devices

06.1.2.9 Other medical products n.e.c.

06.1.3 Therapeutic appliances and equipment

06.1.3.1 Corrective eye-glasses and contact lenses

06.1.3.2 Hearing aids

06.1.3.3 Repair of therapeutic appliances and equipment

06.1.3.9 Other therapeutic appliances and equipment

06.2 Out-patient services

06.2.1 Medical services

06.2.1.1 General practice

06.2.1.2 Specialist practice

06.2.2 Dental services

06.2.2.0 Dental services

06.2.3 Paramedical services

06.2.3.1 Services of medical analysis laboratories and X-ray centres

06.2.3.2 Thermal-baths, corrective-gymnastic therapy, ambulance services and hire of therapeutic equipment

06.2.3.9 Other paramedical services

06.3 Hospital services

06.3.0 Hospital services

06.3.0.0 Hospital services

07 TRANSPORT

07.1 Purchase of vehicles

07.1.1 Motor cars

07.1.1.1 New motor cars

07.1.1.2 Second-hand motor cars

07.1.2 Motor cycles

07.1.2.0 Motor cycles

07.1.3 Bicycles

07.1.3.0 Bicycles

07.1.4 Animal drawn vehicles

07.1.4.0 Animal drawn vehicles

07.2 Operation of personal transport equipment

07.2.1 Spare parts and accessories for personal transport equipment

07.2.1.1 Tyres

07.2.1.2 Spare parts for personal transport equipment

07.2.1.3 Accessories for personal transport equipment

07.2.2 Fuels and lubricants for personal transport equipment

07.2.2.1 Diesel

07.2.2.2 Petrol

07.2.2.3 Other fuels for personal transport equipment

07.2.2.4 Lubricants

07.2.3 Maintenance and repair of personal transport equipment

07.2.3.0 Maintenance and repair of personal transport equipment

07.2.4 Other services in respect of personal transport equipment

07.2.4.1 Hire of garages, parking spaces and personal transport equipment

07.2.4.2 Toll facilities and parking meters

07.2.4.3 Driving lessons, tests, licences and road worthiness tests

07.3 Transport services

07.3.1 Passenger transport by railway

07.3.1.1 Passenger transport by train

07.3.1.2 Passenger transport by underground and tram

07.3.2 Passenger transport by road

07.3.2.1 Passenger transport by bus and coach

07.3.2.2 Passenger transport by taxi and hired car with driver

07.3.3 Passenger transport by air

07.3.3.1 Domestic flights

07.3.3.2 International flights

07.3.4 Passenger transport by sea and inland waterway

07.3.4.1 Passenger transport by sea

07.3.4.2 Passenger transport by inland waterway

07.3.5 Combined passenger transport

07.3.5.0 Combined passenger transport

07.3.6 Other purchased transport services

07.3.6.1 Funicular, cable-car and chair-lift transport

07.3.6.2 Removal and storage services

07.3.6.9 Other purchased transport services n.e.c.

08 COMMUNICATION

08.1 Postal services

08.1.0 Postal services

08.1.0.1 Letter handling services

08.1.0.9 Other postal services

08.2 Telephone and telefax equipment

08.2.0 Telephone and telefax equipment

08.2.0.1 Fixed telephone equipment

08.2.0.2 Mobile telephone equipment

08.2.0.3 Other equipment of telephone and telefax equipment

08.2.0.4 Repair of telephone or telefax equipment

08.3 Telephone and telefax services

08.3.0 Telephone and telefax services

08.3.0.1 Wired telephone services

08.3.0.2 Wireless telephone services

08.3.0.3 Internet access provision services

08.3.0.4 Bundled telecommunication services

08.3.0.5 Other information transmission services

09 RECREATION AND CULTURE

09.1 Audio-visual, photographic and information processing equipment

09.1.1 Equipment for the reception, recording and reproduction of sound and picture

09.1.1.1 Equipment for the reception, recording and reproduction of sound

09.1.1.2 Equipment for the reception, recording and reproduction of sound and vision

09.1.1.3 Portable sound and vision devices

09.1.1.9 Other equipment for the reception, recording and reproduction of sound and picture

09.1.2 Photographic and cinematographic equipment and optical instruments

09.1.2.1 Cameras

09.1.2.2 Accessories for photographic and cinematographic equipment

09.1.2.3 Optical instruments

09.1.3 Information processing equipment

09.1.3.1 Personal computers

09.1.3.2 Accessories for information processing equipment

09.1.3.3 Software

09.1.3.4 Calculators and other information processing equipment

09.1.4 Recording media

09.1.4.1 Pre-recorded recording media

09.1.4.2 Unrecorded recording media

09.1.4.9 Other recording media

09.1.5 Repair of audio-visual, photographic and information processing equipment

09.1.5.0 Repair of audio-visual, photographic and information processing equipment

09.2 Other major durables for recreation and culture

09.2.1 Major durables for outdoor recreation

09.2.1.1 Camper vans, caravans and trailers

09.2.1.2 Aeroplanes, microlight aircraft, gliders, hang-gliders and hot-air balloons

09.2.1.3 Boats, outboard motors and fitting out of boats

09.2.1.4 Horses, ponies and accessories

09.2.1.5 Major items for games and sport

09.2.2 Musical instruments and major durables for indoor recreation

09.2.2.1 Musical instruments

09.2.2.2 Major durables for indoor recreation

09.2.3 Maintenance and repair of other major durables for recreation and culture

09.2.3.0 Maintenance and repair of other major durables for recreation and culture

09.3 Other recreational items and equipment, gardens and pets

09.3.1 Games, toys and hobbies

09.3.1.1 Games and hobbies

09.3.1.2 Toys and celebration articles

09.3.2 Equipment for sport, camping and open-air recreation

09.3.2.1 Equipment for sport

09.3.2.2 Equipment for camping and open-air recreation

09.3.2.3 Repair of equipment for sport, camping and open-air recreation

09.3.3 Gardens, plants and flowers

09.3.3.1 Garden products

09.3.3.2 Plants and flowers

09.3.4 Pets and related products

09.3.4.1 Purchase of pets

09.3.4.2 Products for pets

09.3.5 Veterinary and other services for pets

09.3.5.0 Veterinary and other services for pets

09.4 Recreational and cultural services

09.4.1 Recreational and sporting services

09.4.1.1 Recreational and sporting services - Attendance

09.4.1.2 Recreational and sporting services - Participation

09.4.2 Cultural services

09.4.2.1 Cinemas, theatres, concerts

09.4.2.2 Museums, libraries, zoological gardens

09.4.2.3 Television and radio licence fees, subscriptions

09.4.2.4 Hire of equipment and accessories for culture

09.4.2.5 Photographic services

09.4.2.9 Other cultural services

09.4.3 Games of chance

09.4.3.0 Games of chance

09.5 Newspapers, books and stationery

09.5.1 Books

09.5.1.1 Fiction books

09.5.1.2 Educational text books

09.5.1.3 Other non-fiction books

09.5.1.4 Binding services and E-book downloads

09.5.2 Newspapers and periodicals

09.5.2.1 Newspapers

09.5.2.2 Magazines and periodicals

09.5.3 Miscellaneous printed matter

09.5.3.0 Miscellaneous printed matter

09.5.4 Stationery and drawing materials

09.5.4.1 Paper products

09.5.4.9 Other stationery and drawing materials

09.6 Package holidays

09.6.0 Package holidays

09.6.0.1 Package domestic holidays

09.6.0.2 Package international holidays

10 EDUCATION

10.1 Pre-primary and primary education

10.1.0 Pre-primary and primary education

10.1.0.1 Pre-primary education (ISCED-97 level 0)

10.1.0.2 Primary education (ISCED-97 level 1)

10.2 Secondary education

10.2.0 Secondary education

10.2.0.0 Secondary education

10.3 Post-secondary non-tertiary education

10.3.0 Post-secondary non-tertiary education

10.3.0.0 Post-secondary non-tertiary education (ISCED-97 level 4)

10.4 Tertiary education

10.4.0 Tertiary education

10.4.0.0 Tertiary education

10.5 Education not definable by level

10.5.0 Education not definable by level

10.5.0.0 Education not definable by level

11 RESTAURANTS AND HOTELS

11.1 Catering services

11.1.1 Restaurants, cafés and the like

11.1.1.1 Restaurants, cafés and dancing establishments

11.1.1.2 Fast food and take away food services

11.1.2 Canteens

11.1.2.0 Canteens

11.2 Accommodation services

11.2.0 Accommodation services

11.2.0.1 Hotels, motels, inns and similar accommodation services

11.2.0.2 Holiday centres, camping sites, youth hostels and similar accommodation services

11.2.0.3 Accommodation services of other establishments

12 MISCELLANEOUS GOODS AND SERVICES

12.1 Personal care

12.1.1 Hairdressing salons and personal grooming establishments

12.1.1.1 Hairdressing for men and children

12.1.1.2 Hairdressing for women

12.1.1.3 Personal grooming treatments

12.1.2 Electric appliances for personal care

12.1.2.1 Electric appliances for personal care

12.1.2.2 Repair of electric appliances for personal care

12.1.3 Other appliances, articles and products for personal care

12.1.3.1 Non-electrical appliances

12.1.3.2 Articles for personal hygiene and wellness, esoteric products and beauty products

12.2 Prostitution

12.2.0 Prostitution

12.2.0.0 Prostitution

12.3 Personal effects n.e.c.

12.3.1 Jewellery, clocks and watches

12.3.1.1 Jewellery

12.3.1.2 Clocks and watches

12.3.1.3 Repair of jewellery, clocks and watches

12.3.2 Other personal effects

12.3.2.1 Travel goods

12.3.2.2 Articles for babies

12.3.2.3 Repair of other personal effects

12.3.2.9 Other personal effects n.e.c.

12.4 Social protection

12.4.0 Social protection

12.4.0.1 Child care services

12.4.0.2 Retirement homes for elderly persons and residences for disabled persons

12.4.0.3 Services to maintain people in their private homes

12.4.0.4 Counselling

12.5 Insurance

12.5.1 Life insurance

12.5.1.0 Life insurance

12.5.2 Insurance connected with the dwelling

12.5.2.0 Insurance connected with the dwelling

12.5.3 Insurance connected with health

12.5.3.1 Public insurance connected with health

12.5.3.2 Private insurance connected with health

12.5.4 Insurance connected with transport

12.5.4.1 Motor vehicle insurance

12.5.4.2 Travel insurance

12.5.5 Other insurance

12.5.5.0 Other insurance

12.6 Financial services n.e.c.

12.6.1 FISIM

12.6.1.0 FISIM

12.6.2 Other financial services n.e.c.

12.6.2.1 Charges by banks and post offices

12.6.2.2 Fees and service charges of brokers, investment counsellors

12.7 Other services n.e.c.

12.7.0 Other services n.e.c.

12.7.0.1 Administrative fees

12.7.0.2 Legal services and accountancy

12.7.0.3 Funeral services

12.7.0.4 Other fees and services