The Harmonized Consumer Price Index (HICP) is a measure of inflation in the Eurozone and the European Union.
HICP tracks consumer price inflation based on consumer spending patterns in each EU country, weighted according to that country’s share of total consumer spending.
The most important HICP measure for financial markets is Monetary Union’s Monetary Union Consumer Price Index, which reflects inflation on a monthly basis, which includes the 19 EU countries that use the euro currency.
The ECB is using the MUICP to calibrate its pursuit of price stability, aiming for 2% inflation over the medium term.