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KSH updates consumer basket

The Central Statistical Office (KSH) has updated the consumer basket used for the calculation of the inflation rate, including a cheaper brand of cigarettes than last year, adding 25 new products including chicken breast fillet and extra virgin olive oil and removing 19 products and services from the list, business daily Napi Gazdaság said.

KSH updates the basket annually, partly to follow changes in consumer habits and partly to make the statistics more comparable with those of other EU member states.

It is for the latter reason that salmon and tenderloin were added to the list last year, and this year the price monitoring of extra virgin olive oil as well as dinner plates was also proposed by Eurostat.

Another, more important change is that the weight of the major categories within the basket is also to be modified, the paper notes. This area is also reviewed every year, based on the household consumption recorded two years before the target year.

Although no decision has yet been taken on the final weights, it seems certain that the ratio of consumer durables will be reduced further from the level of under 6.9% reached last year when it was cut by more than one and a half percentage points. “This is justified by the continued decline of the new vehicles market and by falling sales of household appliances,” Borbála Minary of KSH told the paper. At the same time, the weight of food and household energy could continue rising due to the ongoing above-average rise in the prices of such products and services while demand is rather inflexible. (MTI – Econews)