Austria - Consumer Price Index (CPI)

The consumer price index (CPI) is a measure of general price trends and of inflation in Austria. In addition to its role as a general indicator of inflation, the CPI is used for the valorisation of fixed amounts of money (e.g. rents, living costs), and also provides the data on which wage and salary negotiations are based. Both consumer price indices are thus key indicators for Austrian and European data users. 

The HICP by the following schemes:
• The geographical and population coverage follows the domestic concept and includes any purchases made by households within Austria; hence also the purchases of tourists in Austria are included.
• Only those goods and services covered, in the context of a monetary Transaction to be paid.
• The prices actually paid are recorded, so taxes are included. The prices of seasonal sales are reflected in the inflation rate.

• Interest and borrowing costs are not included, since they as finance costs are valued and not classified as consumption expenditure.
• Insurance are taken into account according to the net concept, which is the sum of insurance premiums minus payments from insurance to households 8th. 

The national CPI differs in certain respects from the coverage of the HICP from:
• Investment related expenses for construction, expansion and remodeling of homes are include (e.g .: materials and services for condominiums and homes of housing extension (e.g .: Dachausbauten); Improvements that create significant value and the total object concern (eg. B .: insulation the entire house, installed a new heating system (z. B .: transition to renewable Energy));
• Some tax-like charges, such as the engine-related insurance tax, are included in the CPI:
• gambling contained
• Insurance are taken into account by the gross concept, which is the sum of
insurance premiums

CPI/HICP revision

Revisions were previously carried out every 10 years, today they must be conducted at five-year intervals in accordance with EU regulations (EC No. 2494/95). The aim is to adapt the basket of goods and services accordingly so it is representative for the current consumer behaviour of households.

In addition to the overall inflation rate and the appertaining index numbers, the CPI provides main groups in accordance with COICOP (Classification of Individual Consumption by Purpose) and federal index numbers for individual goods and services in the basket. It furthermore provides special aggregates such as a price index for pensioners’ households, a price index for private transport and a price index at constant tax rates.

The CPI has been subject to revisions since 1958, and was revised for the seventh time at the beginning of 2006.