Weight structure and commodity basket of the Consumer Price Index updated for the year 2024

Weight structure

The weight structure of the Consumer Price Index 2024 is based on national accounts calculations on private consumption expenditure according to EU guidelines. Private consumption expenditure for 2023 included in the national accounts by quarter forms the basis for the weight structure of the Consumer Price Index for 4-digit and 5-digit levels. The weight structure of the sub-categories (6-digit and 7-digit categories) is estimated on the basis of other reliable sources, such as the preliminary data on Household Budget Survey 2022, data of other producers of official statistics of Finland (OSF), sales data of enterprises and data of other actors.

The value of the consumption basket of the Consumer Price Index was about EUR 131 billion in 2023, while it was around EUR 127 billion in 2022. The year-on-year change in private consumption expenditure was 3.3 per cent.

Figure shows the distribution of the weight structure of private consumption by main commodity group for the statistical reference year 2024. The main commodity groups cover all products and services belonging to private consumption, excluding narcotic substances, prostitution and financial intermediation services indirectly measured (FISIM).

Over one-half, 53.3 per cent, of the weight of the Consumer Price Index consists of consumption of housing, food and non-alcoholic beverages, and transport. Consumption on education, communication, and clothing and footwear is lowest. Their share of total consumption was 6.3 per cent.

Changes in consumption compared to the previous year were biggest in miscellaneous goods and services (group 12), which grew by 10.6 per cent and in services and materials related to housing (group 04), which went up by 9.4 per cent. As regards housing, the value of consumption was lifted particularly by the rise in housing loan interest rates.

Consumption decreased most in the group of education, by 12 per cent, and alcoholic beverages and tobacco, by seven per cent from the previous year. The consumption expenditure of beer decreased in particular.

The long-term comparison between 1995 and 2024 shows changes in consumption shares over decades.

In the most recent weight structure of 2024, the share of group 04 Housing, water, electricity, gas and other fuels in total consumption is 28.9 per cent, having been slightly under 20 per cent in 1995.

Since 1995, the consumption share of transport has fallen from 15.6 to 11.9 per cent, while the consumption share of recreation and culture has dropped from 12.4 to under 10 per cent. The consumption of food and non-alcoholic beverages has remained at around 13 per cent over the past ten years.

Commodity basket

The calculation of the Consumer Price Index is based on a commodity basket that is updated annually along with changes taking place in consumption. New commodities are added to the commodity basket if their annual consumption value is at least one per mil of total consumption. Correspondingly, commodities whose value share has fallen under one per mil of total consumption are removed from the commodity basket. With the help of the annually updated commodity basket, the inclusion of representative products and services in the Index is ensured.

From the beginning of 2024, the following were added to the commodity basket:

Cider in restaurant

Long drink in restaurant

Previously, these commodities were included in the commodity Wine in restaurant. The commodities are added to group 11.1.1.1.3 Alcohol in restaurant.

In addition to updating the commodity sample, the content of the commodity basket is continuously updated as concerns individual products selected to the collection.

Outlet sample

The outlet sample is reviewed annually to ensure the representativeness and timeliness of the sample. At the beginning of 2024, the outlet sample was updated concerning package tours and camper vans, for example.

In addition to the sample update, the establishment-specific weights used in index calculation are checked. For the statistical reference year 2024, the internal establishment weights of daily consumer goods trade, insurance and car rental were updated.

Data collection

The data collection on alcoholic beverages sold in restaurants was renewed at the beginning of 2024. Previously, the data collection was carried out quarterly by the Finnish Institute for Health and Welfare (THL), but from now on, Statistics Finland will collect the data monthly. The data collection is carried out as a web-based questionnaire collection from service providers selected to the sample. Alternatively, service providers can supply the price data in electronic format.

The use of scanner data was extended to new sales data concerning utility goods. As a result, interviewer data collections will be reduced correspondingly and replaced by more automated data collection and processing.

Classification of Individual Consumption According to Purpose

The European Classification of Individual Consumption According to Purpose (eCOICOP) introduced in 2016 is used in the definition of commodities. The classification is based on the UN’s Classification of Individual Consumption According to Purpose.

In the European classification, the commodities are divided into 5-digit level sub-groups, by which the products and services are separated into specific commodity groups. The Finnish national classification specifies the European classification with 6-digit and 7-digit commodity groups. The sub-division is revised annually when new commodities are added to the commodity basket or removed from it.

A revised Classification of Individual Consumption According to Purpose (COICOP2018) will be globally adopted at the beginning of 2026. The timetable for the introduction and a draft of the new international classification are available in finnish on the COICOP2018 website.

Weight structure of the Harmonised Index of Consumer Prices is also updated every year

Statistics Finland has also updated the weight structure of the Harmonised Index of Consumer Prices calculated for Eurostat, the Statistical Office of the European Union. Its base year is the same as that of the national Consumer Price Index, 2015=100.

The Harmonised Indices of Consumer Prices are primarily used in price comparisons between the EU countries. The European Central Bank uses the Harmonised Index of Consumer Prices as the measure of inflation in its monetary policy.

The Finnish Harmonised Index of Consumer Prices is mainly based on the same weight and price data as the national Consumer Price Index, but its commodity selection is narrower. It does not include owner-occupancy, games of chance, interests and tax-like payments. The Harmonised Index of Consumer Prices covers 82.7 per cent of the national Consumer Price Index.

The biggest changes in the consumption shares of items excluded from the Harmonised Index of Consumer Prices concern games of chance, interest rates on consumer credits, other licences, owner-occupied housing and vehicle tax.

The weight of games of chance or the share of consumption expenditure, has grown from the previous year by 53.5 per cent, that of interest rates on consumer credits by 48.2 per cent, that of other licences by 41.9 percent, and that of owner-occupied housing by 20.3 per cent, while the share of the vehicle tax has fallen by 21 per cent.

The European Central Bank has raised the interest rates a few times during 2023. Interest rates on housing loans belong to owner-occupied housing (group 04.6) in the commodity classification of the national Consumer Price Index.

Checking of tax tables

Commodity-specific tax tables are checked and updated annually for the Harmonised Index of Consumer Prices at Constant Taxes (HICP-CT). The tax table takes into account value added taxes and excise duties. At the beginning of 2024, the tax rates were updated for the following commodities:

Excise duty on transport fuels decreased

Tax on wines and spirits rose whereas alcohol tax on beer fell

The tax rates are adjusted during the year if the tax rate of the commodity is changed mid-way through the year.

The data of January 2024 for the Consumer Price Index has been published in the release.