(1)

Harmonised Indices of Consumer Prices (HICPs) are harmonised inflation figures required by the Commission and the European Central Bank for the performance of their functions under Article 121 of the EC Treaty. HICPs are designed to facilitate international comparisons of consumer price inflation. They serve as important indicators for the management of monetary policy.

(2)

Under heading (a) of Article 5(1) of Regulation (EC) No 2494/95, Stage I of the measures necessary to achieve comparable indices of consumer prices entails the production of an interim series of indices.

(3)

Under heading (b) of Article 5(1) of Regulation (EC) No 2494/95, during Stage II the harmonised index of consumer prices (HICP) starts with the index for January 1997, the year 1996 being the common index reference period.

(4)

Regulation (EC) No 2494/95 does not, however, preclude updating the HICPs to another common index reference period.

(5)

Following the accession of 10 new Member States in 2004, some HICP sub-indices, governed by the system of classification of individual consumption by purpose adapted to the needs of HICPs (COICOP/HICP), as set in Commission Regulation (EC) No 1749/96 of 9 September 1996 on initial implementing measures for Council Regulation (EC) No 2494/95 concerning harmonised indices of consumer prices (3), refer to different index reference periods; however, HICPs should be compiled on the basis of common index reference periods in order to ensure comparability in accordance with Article 4 of Regulation (EC) No 2494/95.

(6)

Updating the common index reference period would improve the relevance of the HICPs in accordance with Article 5(3) of Regulation (EC) No 2494/95.

(7)

It is considered good practice to update the index reference period of price indices when major revisions of the indices are taking place, whether in terms of items, geographical coverage, or both.

(8)

It is necessary to establish rules for common index reference periods of COICOP/HICP sub-indices integrated within the HICP at different points in time, in order to ensure that the resulting HICPs meet the comparability and relevance requirements of Articles 4 and 5(3) of Regulation (EC) No 2494/95.

(9)

In this context it is necessary to clarify and harmonise the terminology in order to guide operational practice concerning reference periods for HICPs. It is further necessary to amend Commission Regulation (EC) No 2214/96 of 20 November 1996 concerning harmonised indices of consumer prices: transmission and dissemination of sub-indices of the HICP (4).

(10)

The measures provided for in this Regulation are in accordance with the opinion of the Statistical Programme Committee established by Council Decision 89/382/EEC, Euratom (5),

(a)

The ‘weighting reference period’ is as defined in Article 2 of Commission Regulation (EC) No 2454/97 (6).

(b)

The ‘price reference period’ is the period from which the current price change is measured and for which prices are used as denominators in the index calculations; it refers to the prices used for the volume valuation in the HICP weights.

(c)

The ‘index reference period’ is the period for which the index is set to 100 index points.