Basis and Limitations

This section describes the foundations on which price statistics are based and the limitations which the reader should have in mind when interpreting the figures.

 

In calculating the price index, changes in a representative sample of goods and services (called a basket) are weighted to form a total figure for price developments. The weights measure the share of the goods of the total household consumption for an average consumer. There can be large individual differences among individual consumers, depending among other things on particular consumption patterns.

 

Statistics Greenland computes two indices: The consumer price index and the wage regulating price index. The consumer price index shows the price development of goods at market prices and therefore includes taxes.

 

For the purpose of regulating e.g. rents and contracts, Statistics Greenland calculates also a wage regulating price index which is based on prices without taxes and subsidies.

 

The wage regulating price index is a more direct expression of the price development on the market.