Application of level-shift adjustments
Article 1
Open ↗Implementing Regulation (EU) 2020/1148 is amended as follows: (1) in Article 2, the following points (34) and (35) are added: ‘(34) “Level-shift factor” means a factor determined by the ratio between the price changes obtained using current and new production methods, whereby the price change is measured from a calendar year to the price reference period, respectively: The chained index in December of year , using the current production method, is denoted by . The annual average of this index in any calendar year y before the current year t is denoted by ChI y . Similarly, the chained indices, using the new production method, are denoted by ChI New . The indices ChI and ChI New can have different index reference periods. (35) “Level-shift adjustment” means multiplying the index using the new production method in the HICP and the HICP-CT, having December of year as the price reference period, with a respective level-shift factor, starting from the first month when the new production method is introduced until the end of the calendar year’; (2) in Chapter 2, the following Article 22 is added: ‘Article 22 Application of level-shift adjustments 1. Member States may apply a level-shift adjustment if and only if the introduction of a significant change in the production method, as defined in Article 2(21) of Regulation (EU) 2016/792, results in a permanent and significant shift, upwards or downwards, in the level of the chain-linked index. 2. The level-shift adjustment shall be applied at the most detailed level at which the indices calculated according to the current and new production methods can be linked. 3. Member States shall inform the Commission (Eurostat) of the sub-indices to which level-shift adjustments are applied and of the value of the adjustments at the time of the first transmission of data to which the adjustments are made’.