HICP

The Harmonised Index of Consumer Prices (HICP) is a price index used to measure the change over time in the prices of a representative basket of goods and services bought by households. It is harmonised across European Union member states to enable meaningful comparisons of inflation across countries and over time. The HICP is produced monthly by national statistical agencies and compiled by Eurostat, the EU’s statistical office.

The index covers a wide range of expenditure categories, including housing, transport, food and beverages, and other services. Its methodology is harmonised to ensure comparability, with weights based on household expenditure from harmonised budget surveys. Prices are collected for a fixed basket and updated periodically to reflect consumption patterns; analysts can also use sub-indices, such as all-items excluding energy and/or food, for analysis of core inflation.

Eurostat publishes HICP inflation rates for the euro area and for each EU member state, along with historical time series and methodological notes. The HICP serves as the reference measure for monetary policy within the European Union, providing the principal benchmark for price stability used by the European Central Bank. It is also employed in wage negotiations, contracts, and economic analyses where comparable inflation measures are required.

Overall, the HICP is designed to provide a consistent, comparable gauge of consumer price movements across EU countries, supporting policy decisions and economic monitoring in a unified framework.