8. The evolution of Swedish consumer prices 1290–2008
413
A store in Stockholm in 1910. Source: Stockholm City Museum.
index, and is a weighted average of the price indices for the final demand of households and NPISH (Non-Profit Institutions Serving Households), government final demand, gross fixed capital formation and net export. The CPI should not be confused with the deflator of household and NPISH final consumption used in the national accounts; they are based on different methods.3 The deflator of household and NPISH final demand shall include all types of consumption. This is not necessarily the case in calculations of a CPI. A CPI can be based on a narrower range of goods and services, for example, only private consumption in towns. The CPI normally also covers a smaller number of households (for example, the wealthiest households are sometimes excluded). Often imputed values of rents for self-owned dwellings are included, while imputed values of agricultural products for own use are excluded. The latter are included in the deflator of household and NPISH final demand. The index principles of the two indices often differ. While the CPI mostly uses quantities from an earlier period, for example in a Laspeyres price index, the national accounts mostly use quantities of a later period, 3
ILO and others (2004, p. 58).