Producer and Import Price Index in Industry / IPPI

Sources
Dernière mise à jour le : 05/07/2017

Présentation de l'opération

Organisme producteur :

Insee. Direction des statistiques d'entreprises (DSE)

Partenariat :

The "Centre d'études économiques du bois" ("CEEB") = "Economic studies center on wood" for the price of sawn and planed wood (16.10) and wood energy.

Type d'opération :

Prices Index

Objectifs :

The calculation of Producer and Import Price Indices in industry satisfies a national, European or even an international requirement. They relate to the European regulation on short-term statistics ("STS" EC regulation no. 1165/98 of the Council of 19 May 1998, amended by the EC regulation no. 1158/2005 of the Council of 6 July 2005).

Thanks to these indices, calculated by the "Price Indices for Industry and Services" Division :

- Economists can evaluate and analyze economic trends. Many French, European and international public and private organization use them as economic indicators : European Central Bank (ECB), International Monetary Fund (IMF), Organization for Economic Cooperation and Development (OECD), etc. They benefit from the monthly monitoring of prices on different markets at all stages of the production process ;

- 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 the evolution of Gross Domestic Product ;

- Enterprises can escalate contracts. Enterprises can also use indices to monitor the changes in import and cost prices in their branches and to assess their competitiveness in relation to their competitors.

Thèmes abordés :

The following four main indicators are calculated:

- Producer price indices in industry for the French market : measure price evolutions for transactions involving goods and services that comes from the activities of French industry and sold on the French market. The measurement is established at the basic prices (excluding VAT, excluding taxes on the products and with subsidies on the products not deducted, including intra-group transactions), and at the market prices (excluding VAT, taxes on the products, subsidies on the products deducted, excluding intra-group transactions).

- Producer price indices of industry for external markets, monitoring the transaction price trends (converted into euros and thus including exchange rate effects) for goods and services derived from the activities of French industry and destined for sale on foreign markets. It is "production exported" rather than "exports", which also include re-exports or intermediation by traders (possibly from the same group as the producers). All transactions are considered, whether intra-group or not. Foreign markets distinguish the euro area and the rest of the world;

- The combination of both aforementioned indices determines the producer price indices in industry for all markets (French market and foreign markets), at the basic price ;

- The price indices for the importation of industrial products, which show the transaction price trends (converted into euros, and thus including exchange-rate effects) for goods and services originating from the activities of foreign industry and sold on the French market. The measurement is established on a Cost, Insurance, Freight (CIF)-inclusive basis, i.e. the price is evaluated at the French border excluding customs duty and import taxes, in accordance with the European regulation no. 1165/98. All imports are considered, regardless of whether or not they are intra-grouped.

For several branches of activity, these four indicators are supplemented by :

- the price indices of the domestic supply of industrial products, which result from the aggregation of the import price indices and the producer price indices of industry for French market. They show the price trends for industrial products marketed in France, regardless of their place of production.

Champ de l'opération

Champ géographique :

France (including overseas)

Champ(s) statistique(s) couvert(s) :

According to the European Regulation No. 1165/98, the scope of the industry price indices production industry consists of Sections B to E of the CPF revision 2 of 2008, with the exception of the following products :

- B07.21 : Uranium and thorium ore
- C24.46 : Processed nuclear fuels
- C25.4 : Arms and ammunition
- C30.1 : Ships and boats
- C30.3 : Aircraft and spacecraft-	C30.4 : Military combat vehicles
- E37 :  Collection and treatment of waste water and sewage sludge
- E38 : Collection, processing and elimination of material recovery wastes
- E39 : Pollution control and other waste management services.

However, in order to meet the wider application of the national accounts, all industrial branches is taken into account, whether covered or not by the STS Regulation. Uninvestigated branches are imputed.

The price indices for the importation of industrial products, the field is also of Sections B to E, even if the European Regulation excludes the following products :

- B09 : Support services for extractive industries;
- C18 : Printing and reproduction activities;
- C33 : Repair and installation of machines and equipment ;
- E36 : Natural water, water treatment and distribution.

The field has been covered on a gradual basis: while the producer price indices for the French market have been disseminated since 1980 (under the term "Industrial Sale Price Indices"), the observation of the producer prices for foreign markets began in 2001 and the observation of the prices of imported industrial products generally began in October 2005. These two types of indices were retropolated using unit value indices of foreign trade.

In March 2013, the coverage of the French industry stood at 99.5% for producer prices for the French market as the field of European Regulation No. 1165/98 and 99.1% for prices production for external markets; it reaches 97% for import prices of industrial products. These rates are reduced respectively to 94%, 86% and 92% if we consider the total industry without exclusion.

Caractéristiques techniques

Unité statistique enquêtée :

Enterprise branch (product)

Périodicité de l'opération :

Monthly

Période et mode de collecte :

Online questionnaire or paper

Historique :

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. Mensualized price indices industry began in 1989. In May 1998, the European Regulation No 1165/98 concerning short-term statistics (STS) has imposed a monthly supply of price indices industry. Since 2001 began tracking price indices production industry to foreign markets. Purchase import prices followed since 2004, also on a monthly basis, following an update of the STS Regulation (No 1158/2005). Since 2011, some fine aggregates are transmitted in the average price level to the observatory of prices and margins of food products.

Méthodologie :

The calculation of industry price indices is harmonized within the European Union and led to the publication of a methodological manual in 2012.

The industry price indices measure the crude trends in prices (not corrected for seasonal variations). Price series in level are immediately converted into index series reference 2010, and then aggregated according to an aggregation tree for each branch (branch called class CPF4 products official nomenclature). Finally, the price indices of the branches are combined to obtain aggregates.

Indices aggregates (classes CPF4 products and above) in 2010 base are Laspeyres chain-linked indices, annually referenced in 2010, that is to say that the weights used to aggregate the monthly price evolutions are updated in May to calculate the final month of January from the sources of national accounts, structural business statistics and the latest available customs data, usually on the year n-2 (n-1 in the ideal and practice for years 2006-2011 calculated backcasting). Indices branches and levels below, although calculated using the same formulas are Laspeyres fixed base, because the weights are usually updated every five years during the renewal sample (20% of branches are renewed annually: companies, Suppliers, control series, weights).

Autres spécifications :

Each selected company is contacted by a field surveyor. During the interview, pruducts ("series answers") are determined to be both representative of price changes of the company and easily accessible in order to limit, as far as it can, response burden of the company. The questionnaire is therefore different for each company participating in the survey. The data is then collected monthly by mail (up to 30%) or telematics (up to 70%) via the website collection of answers on the Internet. Information are regularly updated, either by a meeting with a field surveyor (at least every five years), or by the company's own statements (deletions and creations series answers, ancillary data transmissions).

The producer and import price indices in the industry and are based on approximately 27,000 monthly prices (sometimes administered quarterly for some companies) transmitted by over 4,200 companies under the obligatory survey "Observation des prix de l'industrie et des services "("Price Observation of Industry and Services"). This survey is part of statistical surveys utilities annual program reviewed by the CNIS (National Council for Statistical Information) and published by decree in the French Official Gazette.