Producer price index in industry
Producer price indices in industry (PPI) are used for the calculation of the volume index of industrial production, for estimation of the Gross Domestic Product at constant prices, as well as for economic analysis and international comparisons.
Concepts and definitions
Producer price index (PPI)
Producer price index in industry is an indicator characterizing price fluctuations of industrial production in a set period of time.
The base year or the year of comparison for the PPI is 2015 (2015=100).
Producer price changes
Monthly, annual, quarterly or any other changes are calculated on the basis of price indices.
Price changes over the previous month reflect changes in the average price level during a month.
Price changes over the corresponding period of the previous year reflect price changes within a period of twelve months.
The annual average producer price changes show the average price changes in the 12 months of the reference year as compared to the corresponding 12 months of the previous year.
Data collection and statistical processing
Survey Method and Source Data
Information on industrial producer prices is obtained by survey of prices for defined item representatives of goods (services) in specially selected enterprises (targeted sample). Statistical reports on industrial producer prices 1-RC (monthly) and 2-RC (annual) are used for data collecion. Weights are calculated using the data on the value of sold industrial production.
Prices are recorded on a monthly basis. Respondents indicate the actual producer price (excluding the VAT and excise tax) for which a representative of goods (services) – a specific product (service) – was sold on the 15th day of the reporting month. If there are no sales transactions on this day, price on the day closest to it, is recorded. If a homogeneous group of goods (services) is selected as an item representative, the average monthly prices are indicated.
Target sampling is made from economically active enterprises if their main or secondary activity in compliance with NACE Rev. 2 is Mining and quarrying (Section B), Manufacturing (Section C), Electricity, gas, stream and air conditioning supply (Section D) or Water supply, sewerage, waste management and remediation activities (section E) and the number of employees in the enterprise is 20 or more, or net turnover in the preceding year exceeding 430 thousand euro. Enterprises with as large as possible share of product sales in the respective industrial activity (NACE class) are included in the sample.
Prices are recorded for products and services sold on the domestic market as well as for exported products and services.
In 2019, the sample of producer prices includes more than 600 enterprises. Their share in the total industrial sales volume in 2017 exceeded 80 %. Price recording covers 150 classes of NACE Rev. 2 (industrial activity in the country is covered by 175 classes). More than 2.4 thsd prices are surveyed, of which more than 1.3 thsd are recorded for production sold on the domestic market and around 1.1 thsd for exported production. The list of enterprises involved in price recording is reviewed every year and enterprises with unstable production operations are excluded, while enterprises playing a significant role in the respective industrial activity are included in the sample. The list of item representatives of goods (services) is also updated on regular basis.
The PPI is calculated by applying a Laspeyres-type formula, which compares the value of the "basket" of item representatives in the reference period with its value in the base period. Prices of December of the previous year serve as the basis for price comparisons. The value of goods sold two years ago in breakdown by NACE sections, divisions, groups and classes is used as weights. In order to ensure symmetry of weights and price base periods, the weights applied to the calculation of the PPI for 2019 have been recalculated into the prices of December 2018.
The base or comparison period of the PPI is year 2015 (2015 = 100).
If a significant influence of corrections (more than 0.1 percentage point) is established upon applying corrected, revised or delayed information for calculations of the total price index within 12-months period (m/(m – 12)), the published producer price indices for the previous period shall be corrected.
Revised price indices are published together with the data of the following reporting period, with a note on revision.
The PPI is calculated according sections, divisions, groups, and classes of Statistical Classification of Economic Activities (NACE Rev. 2), as well as five main industrial groupings (intermediate consumption goods, means of production, consumer durables, consumer non-durables, energy).
The producer price index coverage and level of detail published in the CSB database is broader and different from the index coverage published by Eurostat, because it additionally covers NACE Rev. 2. Group 30.1 (Building of ships and boats), Division 37 (Sewerage) and Division 38 (Waste collection, treatment and disposal activities; materials recovery). To ensure comparability across countries, producer price indices published by Eurostat differ from the national coverage and breakdown.
Contact person on methodology
Producer Price Indices Section