New approach to single market monitoring

1. New approach to single market monitoring Session 4: Typology of needs and data requirements Eurostat Conference “Reviewing the business architecture of consumer price statistics” Alexandre Makaronidis Head of Price Statistics Unit

2. New approach to single market monitoring • The new approach to single market monitoring has put detailed price data at the centre of this policy and thus, in Eurostat's view, the need for a new strategy for price statistics high within the statistical priorities of the ESS. • Not all policy-data issues are for official statistics to address, but this need is one we think the ESS can address. • The following provides an attempt to sum-up new and established user needs and show a way forward taking into consideration the results of empirical work so far. EurostatConference – Reviewing the Business Architecture of Price Statistics

3. New approach to single market monitoring ESS STRATEGY FOR PRICE STATISTICS DETAILED PRICES EurostatConference – Reviewing the Business Architecture of Price Statistics

4. What are the needs in terms of consumer prices? • More detailed price indices: • more detailed sub-indices for HICPs and PPPs • regional HICPs and PPPs • more special aggregates for the HICP (frequent out-of-pocket purchases; HICP at constant taxes) …/… EurostatConference – Reviewing the Business Architecture of Price Statistics

5. What are the needs in terms of consumer prices?(continued) • Regular measurement of price dispersion • across markets, over space and time • Regular measurement of detailed price levels • across markets, over space and time • Better integration of consumer price statistics with other price statistics • picture of prices through the supply chain EurostatConference – Reviewing the Business Architecture of Price Statistics

6. Can we achieve it? • Some say the detailed prices project is: ‘— By far too much’, ‘— By far too difficult’, and if so ‘— We need to start from scratch’ • However, empirical work so far suggests that: ‘— It can be achieved – at reasonable costs.’ • In particular, much can be achieved by better integrating HICP and PPP (data and methodologies) EurostatConference – Reviewing the Business Architecture of Price Statistics

7. What are the key issues? • More classifications work: • more detailed COICOP, common to HICPs, PPPs and HBSs (from min. 600 to max. 1,000 positions) • more effective use of the classification systems used by retailers • A more efficient approach to specifying the prices we collect (through HICP or PPP samples) • An infrastructure that enables a more effective use of the prices collected EurostatConference – Reviewing the Business Architecture of Price Statistics

8. For this to be achieved: • We need to debate old ‘fixed’ positions on • what is comparable and what is representative • how these statistics are collected, • what they mean, and • what they could be used for. • Statisticians working in both domains will need todebate andcompromise. • Better adjusttemporal comparisons to developments in quality and consumer preferences. • Base spatial comparisons on alternative definitions. EurostatConference – Reviewing the Business Architecture of Price Statistics

9. Benefits to both HICPs and PPPs • There will be one platform for both HICPs and PPPs for a constant dialogue between users and producers on which data can best be used to address present, emerging and shifting needs in the future. • Reduction of known statistical inconsistenciesbetween HICPs and PPPs • Further integration will allow better quality control and improve the reliability of both statistics. EurostatConference – Reviewing the Business Architecture of Price Statistics