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Statistical presentation

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Prices and Consumption, Economic Statistics
Martin Birger Larsen
+45 3917 3459

mbl@dst.dk

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Net Price Index

The index of net retail prices shows the development of prices, minus indirect taxes plus subsidies, for goods and services bought by private households in Denmark. Thus, the index also covers foreign households' consumption expenditure in Denmark, but not Danish households' consumption expenditure abroad. The index shows the monthly changes in the costs (minus indirect taxes plus general subsidies) of buying a fixed basket of goods, the composition of which is made up in accordance with the households' consumption of goods and services. The index of net retail prices can best be characterized as a fixed weight index of a Laspeyres-type. The prices that are included in the index of net retail prices are not the prices paid by the consumers, but the purchase prices after deduction of indirect taxes and addition of subsidies (to the extent possible). The only exception to this is rent payments where the total rent, i.e. the share of rent payments, is included. The weights are calculated on the basis of data from the national accounts on final consumption expenditure of households in Denmark, distributed among 70 commodity groups. For each of these, a further division is made by using the detailed information on consumption expenditure from the Household Budget Survey.

Data description

The index of net retail prices shows the development of prices, minus indirect taxes plus subsidies, for goods and services bought by private households in Denmark. Thus, the index also covers foreign households' consumption expenditure in Denmark, but not Danish households' consumption expenditure abroad. The index shows the monthly changes in the costs (minus indirect taxes plus general subsidies) of buying a fixed basket of goods, the composition of which is made up in accordance with the households' consumption of goods and services.

The index of net retail prices can best be characterized as a fixed weight index of a Laspeyres-type. The prices that are included in the index of net retail prices are not the prices paid by the consumers, but the purchase prices after deduction of indirect taxes and addition of subsidies (to the extent possible). The only exception to this is rent payments where the total rent, i.e. the share of rent payments, is included.

The weights are calculated on the basis of data from the national accounts on final consumption expenditure of households in Denmark, distributed among 70 commodity groups. For each of these, a further division is made by using the detailed information on consumption expenditure of Danish households from the Household Budget Survey. The weights were last adjusted in connection with calculating the index for January 2019 and are based on private consumption expenditure in 2017. The weights are updated on a yearly basis. Up till December 2000 the index was calculated with the average of November 1974 till January 1975=100. From January 2001 until December 2015 the index was calculated with 2000=100 as the base year. As from January 2016 the index is calculated with 2015=100.

As of January 2019, media license (09.4.2.3.1) is no longer included in the price index. The change has been made, among other things to ensure consistency between economic statistics and at the request of the European Statistical Office Eurostat. They argue that the Danish media license should be regarded as a tax rather than as a consumption of a service. This has the consequence that the decrease in the media license payment in 2019, as a result of a gradual shift to tax financing, is not reflected in the price index.

Classification system

ECOICOP (European Classification of Individual Consumption According to Purpose) is an European version of the international classification of consumption goods and services, COICOP. ECOICOP is more detailed than COICOP. The description of the ECOICOP Group 12.6.2.1 (Charges by banks) has been changed in the statbank in relation to the official description to emphasize that interest payments and fees relating to the purchase and ownership of owner-occupied housing are not covered in the consumer price index.

Sector coverage

The household sectors purchase of goods and services in Denmark and foreigners purchase of goods and services in Denmark.

Statistical concepts and definitions

Consumer price: The price paid by the consumer, i.e. including VAT and taxes and after deduction of any subsidies.

Price index: Explanations of other concepts regarding index calculations can be found in the publication (in Danish) Index calculations.

Statistical unit

Groups of consumer goods and services. The concrete division of goods and services can be seen in the document "Vægtgrundlag" at the following link: Groups of goods and services

Statistical population

The population consists of the goods and services, which are included in the consumption expenditure of domestic households and private foreign visitors to Denmark.

Reference area

Denmark.

Time coverage

2000-

Base period

2015=100

Unit of measure

Index values and rates of percentage changes.

Reference period

The prices are collected monthly during the period from 7th to 15th.

Frequency of dissemination

The index of net retail prices is published monthly.

Legal acts and other agreements

The index of net retail prices is compiled in pursuance of section 8 of the Act on Statistics Denmark and Consolidated Act on calculation of an index of net retail prices.

There are no European Union regulations relating to the index of net retail prices.

Cost and burden

The total response burden imposed on the reporting of data for the index of net retail prices, the consumer price index and the European Union harmonised consumer price index is estimated at 2078 hours or 0.578 mill. Dkr.

Comment

More information is available by contacting Prices and Consumption, Statistics Denmark.