Scanner data: Advances in methodology and new challenges for computing consumer price indices

Abstract

When consumers pay for their purchases at the store checkout, the barcodes (also known as GTINs) of the goods purchased are scanned, recording quantities and the prices linked to each barcode in the process. Scanner data present an opportunity for use in constructing consumer price indices, which could supersede the use of survey data. Based on the existing concept of consumer price indices, the volume and new types of information provided by scanner datasets raise a number of new methodological questions, in particular in relation to price aggregation to produce indices, handling quality adjustments, classifying goods by homogeneous consumption segment and dealing with product relaunches and promotions. This article looks at how these questions have been addressed in France.