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Improving the quality of regional economic indicators: Regional consumer prices

Building on previous work this paper provides updated prices and inflation estimates for the twelve NUTS-1 regions of the UK.

One key issue previously noted when moving to regional prices estimates is the reduction in LCFS sample size leading to unstable weights.

In this paper, we investigate the data sources to produce regional expenditure estimates, attempting to increase the accuracy of CPIH estimates.

The primary focus is on the Regional Household Final Consumption Expenditure measure (HFCE) publication for use as estimates for regional expenditure weights.

While we were able to update the UK regional CPIH estimates to 2020 using other data sources we still encounter similar problems to Dawber and Smith (2017), with the small sample size of the price databases being problematic for the calculation of CPIH indices.

This ESCoE paper was first published in October 2021

Authors

Kevin is a Chancellor's Fellow in the Department of Economic with a focus on the use of regional economic models for policy analysis. Areas of interest include; energy and climate change, poverty and tourism.

Mairi is the Director of the Fraser of Allander Institute. Previously, she was the Deputy Chief Executive of the Scottish Fiscal Commission and the Head of National Accounts at the Scottish Government and has over a decade of experience working in different areas of statistics and analysis.