Rental price index: methodological report

The housing rental price index makes up the largest share of the basket underlying the consumer price index (CPI). Since 2011, a hedonic adjustment has been made in the housing rental price index to account for quality differences between dwellings when the sample is regenerated. This quality adjustment is based on a hedonic model that expresses the rental price as a function of the different characteristics of the dwelling. As part of the 2020 revision of the CPI, a new model was prepared based on the most recent data along with additional variables and disaggregated geographical data, and provides improved predictive capacity compared to the previous model. This article describes the data, methodology and final form of the new hedonic rental price model.