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Producer prices in industry

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Federal Statistical Office (DESTATIS).

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This indicator is part of the overall STS indicator system, which supports business cycle observation. The producer price index of industrial products aims to show the evolution of output prices for goods manufactured in Germany and destined for the domestic market or for export.

19 May 2025

The basic information collected is the output price (domestic market) or export price (non-domestic market) excluding VAT. The producer price index of industrial products reflects the development of output prices for exports and goods manufactured in Germany for the domestic market. Variables, definitions and frequency of data compilation correspond with Commission Regulation (EU) 2019/2152 of 27 November 2019 in conjunction with Commission Implementing Regulation (EU) 2020/1197.

Observation units are enterprises and reporting units are kind of activity units of the NACE Sections defined above producing and selling industrial goods in the domestic market or exporting industrial goods to the non-domestic market.

Contract prices on products exported (non-domestic market) or produced and sold within Germany (domestic market).

Country as a whole.

Month.

Producer price index figures are very rarely revised. First releases are highly reliable. Results are normally final for the respective reference month with the first release. Choosing a more recent base year leads to slight revision-related differences due to new calculation bases (i.e. basket of goods, weighting pattern, sample of reporting units).

In the case of non-response the price is estimated by well-defined compensation methods and the price representative is replaced as soon as possible.

Index as result of survey on prices.

Estimates for non-response base on imputation techniques (e.g. estimation with price evolution of similar products) which are described in more detail in section 13.3.

Estimates for grossing-up to population levels are not applicable.

The type of indices is Carli (elementary indices) and Laspeyres (aggregated indices) which is rebased in general every five years.

The method of weighting and chaining requires four stages for domestic sales and three stages for non-domestic sales. For domestic sales, first, for each price representative (product at the 9-digit level of national version of CPA for one observation unit) a simple index (price relative) is compiled as a ratio of the current price and the average price in the base year. Second, for each product at the 9-digit level of national version of CPA an elementary index is compiled as an average of the simple indices compiled at stage 1. For the majority of products an unweighted average is used (Carli-Index). Market shares (in terms of turnover) of the observation units are used as weights. Third, elementary indices compiled at stage 2 are combined to aggregate indices up to the CPA-4-digit level using fixed weights (base year 2021). These weights represent the share of each product at the 9-digit level in terms of production for sale. This information is derived from the PRODCOM-survey of the base year. Fourth, starting from the 4-digit level the weights represent the domestic turnover of industries. These weights are derived from the survey of local units in mining and manufacturing and from survey of enterprises in energy and water supply. Weighted indices are compiled for all levels of NACE Rev. 2 and MIGS.

For non-domestic sales, first, for each price representative (product at the 6- or 8-digit level of national version of CPA for one observation unit) a simple index (price relative) is compiled as a ratio of the current price and the average price in the base year. Second, for each product at the 6- or 8-digit level of national version of CPA an elementary index is compiled as an average of the simple indices compiled at stage 1 (Carli-Index). Third, elementary indices compiled at stage 2 are combined to aggregate indices up to the CPA/NACE-2-digit level using fixed weights (base year 2021). These weights represent the export share of each product. A distinction is made for exports in the euro area and the non-euro area. This information is derived from the foreign trade statistics survey of the base year.

The price indices for domestic sales and exports are weighted together according to the domestic turnover and external turnover of the branches.

Data on prices and values of price determining characteristics are usually collected via statistical surveys.

The frame on which the source is based is the national business register, production and turnover statistics and foreign trade statistic.

Generally, collection of data is carried out through a targeted sample. The sample normally represents more than 60% of the domestic output for each observed product. Units with less than 20 employed persons are normally excluded (domestic sales). The sampling method is not formalized. A judicious selection depending on the value of domestic output or exports is performed.

Units with an export value less than EUR 500,000 per year are excluded from the reference source (non-domestic sales).

A fundamental revision of the samples is carried out every five years. The new samples serve for rotation of respondents and permanent adjustments due to the necessity of replacements forced by changes in the market structures.

Monthly.

Domestic sales:

Results are published around 20 days after the end of the reference month. The prices collected refer to the 15th day of the reference month.

Non-domestic sales and PPI total:

Results are published around 25 days after the end of the reference month. The collected prices refer to the average of the reference month.

Consistent time series of the recent base year are available since 1991 since Germany is covered as a whole. Earlier periods refer to the former territory of the Federal Republic of Germany only.

The Laspeyres concept applied to producer price statistics is based on the principle that calculation bases are constant (basket of goods, sample of reporting units, sample of price representatives, weighting pattern). In theory, this ensures the comparability of the calculated indices within a base period.

Price indices for different base periods are often chain-linked to form long-time index series. Due to the introduction of new weighting schemes and methodological changes in the course of implementing a new base year, the long time series of producer price indices are comparable to a limited extent. A particular problem regarding comparability between different base periods is changes in the underlying classifications.