From 2026 onwards, the updated European Classification of Individual Consumption According to Purpose (ECOICOP) ver. 2, will be introduced across the European Union, including Latvia. It will replace the existing classification applied since 2015, providing a more accurate reflection of contemporary consumption patterns and changes in the market. Changes in consumer prices using the new classification will be applied starting with January data, which will be published on 11 February.
What is ECOICOP and why is it being revised?
ECOICOP is a classification that structures household expenditure – such as food, housing, transport, communication, health, etc. It is used in the calculation of the Consumer Price Index (CPI) and the Harmonised Index of Consumer Prices (HICP), which measure inflation.
The consumer market has changed significantly in recent years – new digital services, streaming platforms, smart devices and new types of services have emerged. The previous classification did not always reflect these changes clearly and consistently, which is why a revision was undertaken.
What is changing in the new classification?
ECOICOP ver. 2 is harmonized with the UN COICOP 2018 and provides greater international comparability. Main changes:
- A clearer distinction between goods and services. New service categories have been introduced, such as those for repair, maintenance, installation and rent.
- The communication and recreation/culture groups have been completely revised to reflect the development of digital services.
- The structure of transport expenditures has been expanded to include delivery charges, which were previously often ‘hidden’ in the prices of goods.
- A new – 13th division has been introduced, covering personal care, social protection, and other miscellaneous goods and services (the previous 12th division has been split into two).
What does this mean in practice for statistics users?
- The overall inflation indicator will remain unchanged. The overall values of the CPI and HICP and their changes will remain the same.
- The level of detail will change. Users will notice changes in the names and composition of groups, classes and subclasses, as well as in the number of divisions (from 12 to 13). As a result, the index values of certain groups may change.
- Data continuity will be maintained. Historical time series have been reclassified according to the new classification, ensuring data comparability beyond 2026.
- The old classification will not be continued; however, data up to 2025, according to the previous ECOICOP version, will be available in the archive.
At the same time as the introduction of the new classification, from 2026 the reference period for the price indices will be changed to 2025 = 100, which improves data interpretability but does not affect the actual values of the inflation indicators. The reference period is the basis point against which price changes in other years are compared. If the reference period is set as 2025 = 100, it means that the average price level in 2025 is taken as the starting point with a value of 100.
Changing the reference period does not affect the calculation of inflation indicators or their growth rate – it simply makes the statistics easier to understand and read, as comparisons are made with a recent and familiar period.
The introduction of ECOICOP ver. 2 means that consumer statistics will more accurately reflect how people actually spend money in today’s economy, and will make the data more understandable and comparable at the European level.
Where can the UN COICOP 2018 and ECOICOP ver. 2 classifications be accessed?
Where is the correspondence table between ECOICOP and ECOICOP ver. 2 available?
- on the website of the Publications Office of the EU ShowVoc