1. M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Working Group for Chapter 18 – Statistics Bilateral screening: Chapter 18 PRESENTATION OF MONTENEGRO Luxembourg, June 2013

2. PRICES Bilateral screening: Chapter 18 Presentation of Montenegro Luxembourg, 24-25 June 2013 STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

3. Modules 2.06.01 – Harmonised Indices of Consumer Prices (HICP) 2.06.02 – Spatial Price Comparisons (PPP) STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

4. MODUL 2.06.01 - HICP History:  Within IPA MB 2007 Montenegro started with preparation work and implementation of HICP at the end of 2008;  Montenegro started to produced HICP in 2011 as a pilot survey;  First published in February 2012 when it becomes regular survey (2010=100) STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

5. MODUL 2.06.01 - HICP Current situation:  HICP differs from the national CPI in scope and coverage CPI only covers expenditures of residents in the national territory and abroad; HICP covers all households (resident and non-resident) expenditure in the national territory; For weights derivation CPI uses HBS data (national concept) while HICP uses NA data (domestic concept); Life insurance and games of chance are excluded from HICP STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

6. MODUL 2.06.01 - HICP Current situation:  The HICP is a Laspeyres-type price index  Weights updated annually using NA data (4 digit domestic concept);  For the lower level of aggregation HBS (House Budget Survey) data are used and other available sources;  Price updating each year in January STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

7. MODUL 2.06.01 - HICP Current situation  Legal framework - Council Regulation (EC) No 2494/95 of October 1995 concerning harmonized indices of consumer prices  20 implementing regulations  In February 2012 Montenegro transmitted to Eurostat - Euro SDMX Metadata Structure (ESMS) STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

8. MODUL 2.06.01 - HICP Current situation Last achievements  Implemented COMMISSION REGULATION (EC) No 330/2009 concerning seasonal products  Implemented COMMISSION REGULATION (EU) No 1114/2010 concerning weights  Created new price observation sheets - STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

9. MODUL 2.06.01 - HICP Current situation  Over 55 000 price observations for 547 commodities are collected from approximately 400 retail outlets. The prices collected centrally account for 13.52% of the total weights; No. of price observations per month: (4 656) STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics 01 Food and non-alcoholic beverages:1 711 02 Alcoholic beverages, tobacco: 172 03 Clothing and footwear: 346 04 Housing, water, electricity, gas and other fuels: 226 05 Furnishings, household equipment and routine maintenance of the house: 620 06 Health: 165 07 Transport: 262 08 Communications: 29 09 Recreation and culture: 301 10 Education: 34 11 Restaurants and hotels: 578 12 Miscellaneous goods and services: 212

10. MODUL 2.06.01 - HICP Current situation: HICP Administered prices  Index of administered prices (HICP_AP_M) is a special aggregate subindex of the HICP;  Has not been requested for non EU-countries (voluntary basis);  Montenegro produce this subindex of the HICP with 2010 base year, but still doesn’t send data to EUROSTAT. STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

11. MODUL 2.06.01 - HICP Current situation: STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics CodeData setsSent to Eurostat HICP_M_MMonthly HICPsYES HICP_A_AAnnual weightsYES HICP_CT_MMonthly HICP at constant tax rates NO HPIs/OOHNO ESMSMetadata (SDMX)YES New potential obligations InventoryNO HICP-APAdministered prices (voluntary)NO HICP_FE_MFlash estimatesNO

12. MODUL 2.06.01 - HICP Challenges for future work: Regulations that should be implemented:  COMMISSION REGULATION (EU) No 93/2013 of 1 February 2013 laying down detailed rules for the implementation of Council Regulation (EC) No 2494/95 concerning harmonised indices of consumer prices, as regards establishing owner-occupied housing price indices;  COMMISSION REGULATION (EU) No 119/2013 of 11 February 2013 amending Regulation (EC) No 2214/96 concerning harmonised indices of consumer prices (HICP): transmission and dissemination of sub-indices of the HICP, as regards establishing harmonised indices of consumer prices at constant tax rates STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

13. MODUL 2.06.01 - HICP Challenges for future work:  To improve the existing methods of quality adjustment and implement the latest expert recommendations (IPA 2011);  Transmission to Eurostat HICP at administered prices;  Writing HICP Inventory on voluntary basis. STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

14. MODUL 2.06.01 - HICP Future plans:  Implementation and production of HICP at constant taxes (short-term period);  Implementation of HPI and OOH indices (needed expert’s support);  Creating a new unique program for computation of CPI and HICP. STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

15. MODUL 2.06.02 - PPP History:  Since 2003 Montenegro has involved in the Europian Comparison Program (ECP) which is part of International Comparison Program (ICP);  PPP project in Montenegro for consumer goods started as pilot project under B Group which was consisted of Western Balkan Countries (WBC) with Slovenia as Groupe Leader;  PPP for the capital goods survey was implemented in 2006;  Since January 2010 Montenegro and other two WBC, Serbia and Bosnia, was moved to Eastern European Group under leadership by Austrian statistical office in Vienna STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

16. MODUL 2.06.02 - PPP Current situation:  Within the PPP project for Consumer and Capital Goods, MONSTAT carries out the pre-survey work, organizes and co-ordinates the price collection and validates the results;  In line with the Eurostat PPP work plan deadlines, MONSTAT is obliged to send following data to Eurostat: Data and survey reports for two consumer price surveys per year; Data and survey reports for capital goods (for Equipment survey every second year and for Construction survey every year); Collection annually data on rents, salary, consumer price indices (CPI) and GDP weights; PPP Inventory STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

17. MODUL 2.06.02 - PPP Current situation: STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics CodeData sets Sent to Eurostat PPP_CNSTRSR_ASurvey - Construction - Survey ReportsYES PPP_CNSTR_ASurvey - ConstructionYES PPP_CPIS_ACPI DataYES PPP_EQIPMSR_2Survey - Equipment Goods - Survey ReportsYES PPP_EQIPM_2Survey - Equipment GoodsYES PPP_FBETOSR_3Survey - Food, Drinks and Tobacco - Survey Reports YES PPP_FBETO_3Survey - Food, Drinks and TobaccoYES PPP_FRHEASR_3Survey - Furniture and Health - Survey ReportsYES

18. MODUL 2.06.02 - PPP Current situation: STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics CodeData sets Sent to Eurostat PPP_FRHEA_3Survey - Furniture and HealthYES PPP_HOGARSR_3Survey - House and Garden - Survey ReportsYES PPP_HOGAR_3Survey - House and GardenYES PPP_HOTEL_3Hotel QuestionnaireYES PPP_PERAPSR_3Survey - Personal Appearance - Survey ReportsYES PPP_PERAP_3Survey - Personal AppearanceYES PPP_RENTS_ASurvey - RentsYES PPP_SALAR_ASurvey - SalariesYES

19. MODUL 2.06.02 - PPP Current situation: STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics CodeData sets Sent to Eurostat PPP_SPATI_NSpatial Adjustment FactorsNO PPP_SRVICSR_3Survey - Services - Survey ReportsYES PPP_SRVIC_3Survey - ServicesYES PPP_TIPS_ATips DataNO PPP_TREHOSR_3Survey - Transport, Restaurants and Hotels - Survey Reports YES PPP_TREHO_3Survey - Transport, Restaurants and HotelsYES PPP_VAT_AVAT DataNO PPP_WEIGH_AGDP WeightsYES

20. MODUL 2.06.02 - PPP Future plans: 1.Provide detail GDP expenditure data following “GDP weights questionnaire” request; 2.TIPS and VAT questionnaires completed and send by deadlines. Items 1 and 2 depends of further harmonisation national accounts statistics.  PPP Health: At the moment we are cooperate with Ministry of Health regarding with compiling and sending data for Health PPP survey STATISTICS Chapter 18: M O N T E N E G R O Negotiating Team for Accession of Montenegro to the European Union Chapter 18: Statistics

21. Thank you for your attention! QUESTIONS