Net price index

The net price index describes changes in consumer prices exclusive of estimated effects of commodity taxes but inclusive of the effects of commodity subsidies. The rate of inflation measured with the consumer price index is mainly composed of products and services priced by enterprises, and of taxes collected by public authorities, such as the value added tax. Consumer prices are additionally influenced by subsidies paid by public authorities, with those on agricultural products and public transport as the most important ones. Price changes caused by taxes and subsidies have been removed completely from the net price index. The net price index is calculated as a weighted average of the tax tariff index, describing the effect of taxes and subsidies, and the consumer price index.