Filenews 1 January 2026 - by Angelos Angelodimou
After several years, the Statistical Service decided to proceed with changes related to the formation of the Consumer Price Index, through which inflation is measured.
The changes, which will be implemented immediately, i.e. from January 2026, result from both European regulations and the findings of the Family Budget Survey, which was carried out from April 2023 to March 2024, with the results to be made public in May 2025.
Based on the information we had from competent officials of Statistics, the changes will focus on four axes.
(1) Updating the weighting factors, depending on the weight of each product in the Price Index.
(2) In the application of a new version of the classification system.
(3) The change of the base year from 2015 to 2025.
(4) The diversification of the composition of the products of the Consumer Price Index. As we were informed by Statistics, these changes will not have a substantial effect on the way inflation is measured.
The main changes
As it is understood, the two most important and basic changes that will occur are the updating of the weighting factors and of course the differentiation of the composition of the products of the Consumer Price Index, or otherwise as it is more widely known, in the household basket. By way of illustration, the household basket consists of the products and services for which households spend a significant amount to acquire and are weighted with specific coefficients for the compilation of the CPI.
On the other hand, weights are the weight or percentage by which they affect the CPI, the goods and services it includes.
Based on the changes being promoted, the new household basket will include 850 goods and services, compared to 805 in the previous one. 130 new goods and services will be added, while 85 goods will be removed.
The selection of new products and the removal of existing ones is based on the annual expenditure of households, based on the latest Household Budget Survey.
We buy differently
Consumer habits and of course consumer spending have changed significantly in recent years, as a result of changes in lifestyle and the differences that arise in relation to the needs of everyday life.
The changes in health, with the introduction of the GHS, the changes in technology, even in the products we buy in supermarkets have changed and therefore the composition of the products in the household basket is also different. Therefore, the way inflation is measured may not change, but the change in products and their weight in the Index may affect its fluctuation rate.
As the Statistical Service explains, the Consumer Price Index (CPI) is an economic index compiled to measure the changes over time in the prices of consumer goods and services consumed by households. The CPI aims to cover the full range of final consumption expenditure in order to provide a timely and clear picture of inflation.
As for the other two changes, they arise mainly due to European obligations. The first will concern the implementation of a new version of the classification system (ECOICOP v2). That is, essentially the 12 categories that exist will become 13 (the 12th will be divided into 12 and 13), while there will also be a change in the base year from 2015 to 2025. The data with the oldest base years and the previous classification will continue to be available on the Statistical Service's web portal, either in the Predefined Tables (in MS Excel format) or in the CYSTATDB database, as informed by the Service.
The objectives of the research
The Household Budget Survey (EEA) is conducted by the Statistical Office usually every five years, with the first survey having been conducted in 1966. The 2023 survey is the twelfth in a row.
The main objective of the survey is to study the structure of household expenditure in order to:
- To revise the representative goods and services included in the "household basket", as well as the weightings that determine the relative weight of each good and service in the context of the Consumer Price Index.
- To update the figures concerning the estimation of private consumption in the system of national accounts.
- To analyze the amount and distribution of household expenditure and income, by source of income and by various socio-economic and demographic groups.
- To compile various socio-economic indicators, with the ultimate goal of studying the standard of living of households.
The results of the EEA and the conclusions
In summary, the main results of the survey for 2023 are the following:
- The average annual consumption expenditure per household for 2023 amounted to €43,263, compared to €31,206 in 2015/2016. An increase of 38.6% in nominal values and 19.6% in real values (due to the effect of inflation – high prices) was recorded, compared to 2015/2016.
- In urban areas, the average annual consumption expenditure per household for 2023 was €44,548, while in rural areas it was €40,505. As a result, households in urban areas spent 10.0% more than households in rural areas.
- The largest share of household expenditure was related to housing (27.5%), followed by food (14.5%) and transport (11.6%). The smallest percentage was recorded in the category "Alcoholic beverages and tobacco" (1.4%).
- The average annual consumption expenditure per household in the lowest and highest income decimal amounted to €14,730 and €96,410, respectively.
- The average annual consumption expenditure per adult equivalent for 2023 amounted to €25,216.
- In urban areas, the average annual consumption expenditure per adult equivalent for 2023 was €26,265, while in rural areas it was €23,046.
- The average annual consumption expenditure per adult equivalent in the lowest and highest income deciles amounted to €11,537 and €48,137, respectively.
- The average annual non-consumption expenditure per household for 2023 amounted to €10,585.
- The average annual net income per household amounted to €48,419.
- In urban areas, the average annual net income per household was €51,382, while in rural areas it was €42,064, i.e. 18.1% lower.
- The average net annual income per household in the lowest and highest income decile amounted to €12,529 and €142,066, respectively.
- The average net annual income per adult equivalent amounted to €28,222. In urban and rural areas it was €30,294 and €23,933, respectively.
- The average annual net income per adult equivalent in the lowest and highest income decile amounted to €9,884 and €76,484, respectively.
