| Author (Corporate) | European Commission |
|---|---|
| Series Title | COM |
| Series Details | (2014) 724 final (9.12.14) |
| Publication Date | 09/12/2014 |
| Content Type | Policy-making |
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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. 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. 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. |
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| Source Link | http://eur-lex.europa.eu/legal-content/EN/TXT/?uri=COM:2014:724:FIN |
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| Subject Categories | Culture, Education and Research, Economic and Financial Affairs |
| Countries / Regions | Europe |
