Effects of revised methodology for calculating the CPI
- Solveig K. Erlandsen, Pål Bergset Ulvedal and Nikka Husom Vonen
- Staff Memo
In 2013, Statistics Norway revised its methods for calculating price developments for two large components of the consumer price index (CPI): food and non-alcoholic beverages and rentals for housing. In this article we discuss and analyse possible effects of the revisions. We estimate that the new methods have resulted in an annual rise in the CPI that in each of the past three years is between 0.1 and 0.4 percentage point higher than the methods used prior to 2013 would have resulted in. The effects likely depend on cyclical developments and the extent of promotional activity in the grocery trade.
Staff Memos present reports and documentation written by staff members and affiliates of Norges Bank, the central bank of Norway. Views and conclusions expressed in Staff Memos should not be taken to represent the views of Norges Bank.
ISSN 1504-2596 (online)