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The retail price index measures the evolution of the price levels of consumer goods and services purchased by Andorra households. First, the Household Budget Survey (HBS) is carried out in 1,000 randomly selected Andorran homes, which are representative of all the residences in the Principality. These selected households inform us of when, where and on what they spend their money, divided into type of product and type of store. The market basket is comprised from this information. The market basket determines the degree of importance of each type of product. This information then determines the weight the groups carry in the RPI. At the beginning of every year, these weights are updated using the annual results of the Household Budget Surveys (HBS) from the previous year. The RPI is the result of a monthly survey. A team of survey specialists gather 4,750 prices (3,675 products), which are always the same and bought from the same shops, regardless of whether the prices have changed or not. In this way, we can see how the goods and services that are consumed in Andorra have evolved. Afterwards, these variations are relativised based on the weight of the consumption of that good or service. The goal is to finally obtain the variation percentage rate that corresponds to the RPI figure provided each month by the Government.
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