Press release, 19.12.2023.
GKI analysis based on new factual errors and professional shortcomings
Referring to the paper published by GKI Economic Research Co. on 19 December 2023, entitled "How does the residential energy price calculation affect the overall consumer price index?", the Hungarian Central Statistical Office would like to make the following comments.
Following the amendment of the regulation on the retail price of fixed gas and electricity in the summer of 2022 [Government Decree 259/2022 (21 July)], the HCSO staff developed a new methodology for measuring the household energy price index, which became necessary as a result of the amendment to the regulation. This methodology has been shown to be fully in line with European standards and professional expectations, and HCSO has made it available to professional organisations and the public in a transparent manner without delay. In its dialogue on the subject over the past weeks, the HCSO has helped to improve understanding of the subject by publishing further communications.
The paper published by GKI Economic Research Co. demonstrates limited knowledge of this information and contains several factual errors, of which the following are considered important to highlight.
As with the other proxies, fixed gas and electricity are included in the CPI with a weight based on consumption data for the last seven quarters available, which remains constant throughout the calendar year (in 2023, fixed gas has a weight of 2.24% and electricity 1.56%).
When calculating the consumer price index for fixed gas and electricity, the HCSO takes into account the change in consumption, as this is a direct consequence of the state price regulation. Contrary to what is stated in the article, the HCSO calculates the average price a consumer pays for a cubic metre of gas or a kilowatt hour of electricity. This approach is analogous to calculating the price of a kilogram of chicken breast or a litre of milk. If we were to use the approach in the paper, a much less precise indicator would be obtained, which does not capture well what the average citizen has to pay for a unit of energy.
Lastly, it is worth mentioning the 'innovative' qualification of the methodology used by the HCSO, which is intended to undermine the credibility of the Office. It should be noted here that, this year the HCSO has undergone an audit by independent and objective foreign experts from Eurostat (Peer Review Report), the results of which are publicly available. The report concludes, inter alia, that the Hungarian Central Statistical Office is a reliable and respected independent institution, that the statistics it produces are objective, of high quality, reliable and timely, and that the HCSO is considered to be responsive to problem-solving and open to professional debate.
Hungarian Central Statistical Office
H-1024 Budapest, Keleti Károly u. 5-7. Tel./Phone: (+36-1) 345-6000
Postacím/Postal address: P.O.Box 51 Budapest H-1525
http://www.ksh.hu