Eurostat to Update Inflation Calculation, Including Gambling in Index Basket
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Starting February 4, 2026, Eurostat will implement important changes to the Harmonized Index of Consumer Prices (HICP), the key measure of inflation for the European Union. These updates include adopting a new classification system and incorporating gambling into the index for the first time. These changes reflect evolving consumer spending patterns and aim to provide a more accurate depiction of inflation across member states. Publication date: 2026/01/08 06:05:16
New Classification System: Ecoicop Version 2
The HICP calculation will transition to the European Classification of Individual Consumption by purpose (ecoicop version 2), aligning with the international standard Coicop UN 2018 defined by the United Nations. This updated classification enables greater comparability of inflation data across countries and regions. Ecoicop provides a standardized framework for categorizing consumer goods and services, ensuring consistency in how spending is measured.
2025 as the New Base Year
Alongside the new classification, 2025 will become the base year for the Index of Consumer Prices (IPCA), a related measure of inflation. A base year is assigned a value of 100, and subsequent price changes are expressed as a percentage relative to this base. This shift provides a refreshed benchmark for tracking price fluctuations and economic trends.
Gambling Included in Inflation Calculations
Perhaps the most notable change is the inclusion of gambling within the “Recreation, sport and culture” division of the HICP basket. Previously excluded due to methodological challenges in establishing consistent European-wide criteria, gamblingS inclusion is now possible due to recently published guidelines in December 2024, addressing these concerns. This expansion reflects the increasing importance of gambling as a component of consumer expenditure.
Why Was Gambling previously Excluded?
Standardizing the measurement of gambling expenditure proved tough because of varying regulations and data collection methods across EU member states. The new guidelines published in December 2024 provide a harmonized approach, allowing Eurostat to confidently incorporate gambling into the inflation index.
impact of the Changes
These updates aim to enhance the accuracy and relevance of inflation measurements within the EU. The new Ecoicop classification ensures better comparability, while the inclusion of gambling provides a more complete picture of consumer spending. These changes will affect economic analysis, monetary policy decisions, and wage negotiations.
Key Takeaways
- Eurostat is updating the HICP calculation starting February 4, 2026.
- The update includes adopting Ecoicop version 2, aligning with UN standards.
- 2025 will be the new base year for the IPCA.
- Gambling will be included in the HICP basket for the first time.