Price index of consumer goods and services is calculated on the basis of the results of:

- surveys on prices of consumer goods and services on the retail market,

- surveys on household budgets, providing data on average expenditures on consumer goods and services; these data are then used for compilation of a weight system.

Calculating price index of consumer goods and services is done on the basis of the Classification of Individual Consumption by Purpose (COICOP) adapted for the use of Harmonized Indices of Consumer Prices (HICP).

The price index of a representative in the region included in the price survey results from relating its average monthly price to an average price from the base period.The all-Polish price index of a representative included in the survey is calculated as geometric mean of price indices from all regions. Calculating price indices of groups of consumer goods and services at the lowest level of weight system aggregation is done on the basis of price indices of the representatives included in price survey in a given group by using geometric mean. They are then used by applying weight system to calculate indices of higher level of aggregation up to the price index of total consumer goods and services. price index is calculated in line with the Laspeyress’s formula by applying weights from the year preceding the reference yea.

Price indices of consumer goods and services are used in the following way:

- for quarter – for aims stated in the act on pensions from the Social Insurance Fund,

-for the first half-year compared to the same period last year – for the purposes for purposes defined in the act on taxes and local charges

- for half-year - for valorization of unemployment benefits,

- for the first three quarters of a year in relation to a corresponding period of the previous year – for purposes defined in the act on taxes and local charges,

- for year in relation to the previous year – for purposes defined in the act on pensions from the Social Insurance Fund.

-for September compared to September 2005 – for the purposes specified in the law on organization and operation of Pension Funds.

The methodology of calculating price indices of consumer goods and services is compliant with the requirements of European law.

Related terms:

• Household's budget

• Retail price

• Prices of customer goods and services

• Outlet

• Price survey region

• Representative of goods or services

• Official Journal of the Republic of Poland "Monitor Polski" - announcement of the President of CSO - by 31 January (annual average)

• Official Journal of the Republic of Poland "Monitor Polski" - announcement of the President of CSO - by 20th day after the end of the half - year

• Official Journal of the Republic of Poland "Monitor Polski" - announcement of the President of CSO - by 15 October (for Q1-Q3 compared with Q1-Q3 the previous year)

• Official Journal of the Republic of Poland "Monitor Polski" - announcement of the President of CSO - within 20 days after the reference quarter

• Official Journal of the Republic of Poland "Monitor Polski" – announcement of the President of CSO – by 20 April and by 20 October (for the last 72 months i.e. March/September of given year relation to March/September of the 6 year-old period)

Anna Bobel

A.Bobel@stat.gov.pl