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The International Producer Price Index Manual, Theory and Practice (PPI Manual) published by the IMF in 2004 consituted a landmark for international standards on price measurement and contains detailed, comprehensive information for the compilation of producer price indices as well as an extensive coverage of the conceptual and theoretical issues. This second edition of the Methodological Guide for Developing Producer Price Indices for Services (SPPI Guide) is a complement to the PPI Manual in two ways: it focuses on service-specific aspects in the PPI compilation by developing further the conceptual framework and it adds detailed descriptions of PPI measurement for a wide range of individual service industries.
This second edition of the SPPI Guide has been jointly produced by the OECD, Eurostat, the members of a task Force with deleguates from 14 OECD/EU members countries (Australia, Austria, Canada, France, Germany, Hungary, Israel, Japan, Korea, Mexico, Netherlands, Poland, the United Kingdom and the United States)and in synergy with the Voorburg Group. Several countries contributed to the Guide by providing descriptions of service PPIs for individual industries, other countries were represented by national experts in at least one meeting of the Task Force.
This chapter presents practical guidance as well as main issues and challenges for compiling SPPIs for Human health activities (ISIC 86).
The United Nations Central Product Classification (CPC) Ver.2 is a coherent and consistent classification based on the physical characteristics of goods or on the nature of the services rendered. Each type of good or service distinguished in the CPC is defined in such a way that it is normally produced by only one activity as defined in ISIC. The CPC covers products that are an output of economic activities, including transportable goods, non-transportable goods and services.
This chapter presents practical guidance as well as main issues and challenges for compiling SPPIs for Employment activities (ISIC 78), Security and investigation activities (ISIC 80), and Cleaning activities (ISIC 812).
This chapter presents practical guidance as well as main issues and challenges for compiling SPPIs for Accommodation (ISIC 55) and Food and beverage service activities (ISIC 56).
In OECD countries, services account for the largest share of GDP. However, statistics on services are still partially underdeveloped when compared to statistics on goods producing industries.1 This is particularly true for producer price indices where price indices for goods by far outnumber available price indices for services. There are several reasons for this asymmetric coverage of price indices. One is simply that goods historically played a more important role than services and this has shaped statistical systems. Another reason is that developing service price indices is a difficult and expensive task. Service output may be hard to identify on purely theoretical grounds, and even more difficult to measure reliably. For example, services may be unique and have to be treated like new products (e.g. various consultancy services) or they can be tailored or bundled in different ways for different users. All this implies complexity and high costs for price measurement.
The United Nations International Standard Industrial Classification of all Economic Activities (ISIC), Rev.4 is a coherent and consistent classification structure of economic activities based on a set of internationally agreed concepts, definitions, principles and classification rules. It provides a comprehensive framework within which economic data can be collected and reported in a format that is designed for purposes of economic analysis, decision-taking and policy-making. The classification structure represents a standard format to organise detailed information about the state of an economy according to agreed economic principles.
This chapter presents practical guidance as well as main issues and challenges for compiling SPPIs for Legal activities (ISIC 68), Accounting, bookkeeping and auditing activities; tax consultancy (ISIC 6920), Management consultancy (ISIC 7020), Architectural activities and engineering services and related technical consulting services (ISIC 7110), Technical testing and analysis (ISIC 7120), Advertising (ISIC 7310) and Market research and public opinion polling (ISIC 7320).
This chapter presents main issues and challenges for compiling SPPIs for Freight transport by road (ISIC 4923), Sea and costal water transport (ISIC 5012), Air transport (ISIC 51), Warehousing and storage (ISIC 5210), Cargo handling (ISIC 5224), and Courier and postal activities (ISIC 53).
This chapter presents practical guidance as well as main issues and challenges for compiling SPPI for Wholesale and retail trade services (ISIC 46-47).
The second part of the SPPI Guide contains 10 chapters classified according to the ISIC classification that provide guidance on 31 service industries. These chapters 4 to 13 are based on country practices and deal with feasible solutions to implement SPPIs in some specific service industries.
This chapter presents practical guidance as well as main issues and challenges for compiling SPPI for Real estate activities (ISIC 68).
This chapter presents practical guidance as well as main issues and challenges for compiling SPPIs for Publishing of books, periodicals and other publishing activities (ISIC 581), Software publishing (ISIC 5820), Telecommunications (ISIC 61), and Computer programming, consultancy and related activity (ISIC 62).
The international Producer Price Index Manual (PPI Manual) published by the IMF in 2004 constituted a landmark for international standards on price measurement. It contains detailed, comprehensive information for the compilation of producer price indices as well as an extensive coverage of conceptual and theoretical issues. The joint Eurostat-OECD Methodological Guide for Developing Producer Price Indices for Services (SPPI Guide) is a complement to the PPI Manual in two ways: it focuses on service specific aspects in the PPI compilation by further developing the conceptual framework and it adds detailed descriptions of PPI measurement for a series of service industries.
Each service industry presents a unique set of challenges to identifying and pricing service products. The purpose of this chapter is to outline, in a practical way, how to develop SPPIs.
The primary motivation of this chapter is to help to develop a better understanding of the variety of pricing methods used. It characterises the various approaches within a broad conceptual framework that facilitates understanding and international comparability by providing links between the various pricing mechanisms used by service providers and the methods used by index compilers to measure price change.
This chapter presents practical guidance as well as main issues and challenges for compiling SPPI for Waste management service activities (ISIC 37-38).
This chapter gives an overview of general aspects of service producer price indices (SPPIs) compilation. The chapter presents methodological information on the core measurement issues of SPPIs that the compiler will have to deal with when starting compilation and discusses the definition, uses and scope of SPPIs; product and industry SPPIs; the price concept underlying SPPIs; the appropriate statistical units; the international classifications; the identification of service products; the sample frame and weights and; the treatment of quality changes. Efforts have been made to present discussions in line with the Producer Price Index Manual (PPI Manual)1 and to focus on service-specific aspects of producer price indices (PPIs) compilation by developing further the conceptual framework.