Producer and Import Price Index in IndustryIPPI

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Paru le : 20/03/2019
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Description

Description

The calculation of Producer and Import Price Indices in industry replies to the European regulation on short-term statistics ("STS" EC regulation no. 1165/98 of the Council of 19 May1998, amended by the EC regulation no. 1158/2005 of the Council of 6 July 2005).

Thanks to these indices, calculated by the « Direction des statistiques d'entreprises (DSE)":

- Economists can evaluate and analyze economic trends. Many French and international public and private organizations use them as economic indicators : European Central Bank (ECB), International Monetary Fund (IMF), Organization for Economic Cooperation and Development (OECD), etc.;

- Short term analysts and National accountants can deflate the production that comes from corporate structural statistics and as such to carry out the breakdown between development of the activity in volume and development of prices ("price-volume" sharing). In fine, they can determine the evolution of Gross Domestic Product ;

- Companies and local communities can use these indices for contractual indexations. Companies can also use indices to monitor the changes in import and cost prices in their activities and to assess their competitiveness in relation to their competitors.

History

The survey of industrial producer prices followed the investigation wholesale prices established in 1970 (similar collections already existed in the early twentieth century). The survey in its current form began in 1977, but it was then quarterly. Dissemination of monthly Industry price indices began in 1989, when the European Regulation No 1165/98 concerning short-term statistics (STS) has imposed to publish monthly price indices. In 2001, Insee began to track production price indices in Industry to foreign markets. Purchase import prices followed in 2005, also on a monthly basis, following an update of the STS Regulation (No 1158/2005). Since 2011, some fine aggregates have been transmitted as average prices to the Observatory of Prices and Margins of food products.

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