Relevance
The
Retail Price Index (RPI) serves as an economic indicator that measures the
inflation in Malta, mainly determining the monthly average change in the prices
of goods and services purchased by private Maltese households. Every month, indices for each item are
calculated to derive the annual and monthly inflation rates. Such indices are then aggregated into the 10
main RPI groups. Apart from the
inflation rate, these indices are also used to calculate the Cost of Living
Adjustment (COLA). The RPI is also
regulated by Act XXIII/1979 (Chapter 158 Article 13 of the Laws of Malta).
Methodological
description
Data
for the RPI is compiled from price readings which are gathered every month from
various outlets across Malta and Gozo, by a team of price collectors. Besides this, prices for certain services are
also collected by means of mail surveys, administrative data sources, telephone
surveys, and online sources. The RPI
captures private households only whereas the Harmonised Index of Consumer
Prices (HICP) covers private households, institutional households (such as
retirement homes) and foreign visitors to Malta.
The
basket of consumption items considered for the RPI is reviewed periodically, in
line with the Household Budgetary Survey (HBS), during which information of
household consumption is collected over a 12-month period in order to obtain an
estimate of the average household expenditure.
The information collected through the HBS exercise is then further
supplemented by additional data sources to get to the final RPI weights.
The
RPI is a fixed base index with weights periodically updated in line with the
HBS. On the other hand, the HICP is a
chain-linked index with the weights reviewed on an annual basis. Unlike the RPI where the sample of goods and
services changes every time the weights are updated, newly significant goods
and services can be introduced in the HICP framework on an annual basis.
Other
measures produced are the inflation rate, percentage change on a monthly and
annual basis, impact on inflation, and twelve-month moving average rate.
Accuracy
and reliability of data
Information
on the accuracy and reliability of data can be viewed in a dedicated ESMS
metadata report available on the NSO’s metadata website. Moreover, data pertaining to the RPI is scrutinized
by the RPI board prior to publication.
Timeliness
and punctuality of data
Data
for the RPI is published in a news release on a monthly basis. Data pertaining to a particular month is
published in the subsequent month. These
are accessible on the NSO website and are published on the pre-established
date, as scheduled in the Advance Release Calendar which can be viewed also on the
NSO website.
Accessibility
and clarity of data
RPI
data can be accessed from the NSO website via the StatDB.
An ESMS metadata report is also produced at a national level and is made
available on the NSO metadata website.
Coherence
and comparability/consistency of data
The
current RPI series is published in accordance to the reference base December
2016. RPI data is comparable over time;
however, it has never been revised since this is not possible for the RPI. Any improvements that are implemented to the
method for compiling the RPI have minimal impacts on the overall RPI. Comparison of RPI data to that of other
countries is not possible since the RPI is only compiled for national purposes.