Reference metadata describe statistical concepts and methodologies used for the collection and generation of data. They provide information on data quality and, since they are strongly content-oriented, assist users in interpreting the data. Reference metadata, unlike structural metadata, can be decoupled from the data.
Statistical classification of products by activity CPA version 2.1.
Statistical classification of economic activities NACE Rev. 2.0.
Main industrial groupings MIGs.
3.3. Coverage - sector
Product sections B to E36 according to CPA version 2.1.
Enterprises whose exports or domestic supply had a value of less than EUR 800,000 were removed from the sample frame. In addition, enterprises were removed from specific CPA headings if the value of their exports or domestic supply in those headings was less than EUR 200,000. However, weight structures contain the values of excluded enterprises.
3.4. Statistical concepts and definitions
The producer price index measures average changes in the prices of goods sold by domestic producers. The index includes both goods sold at home (domestic) and goods sold abroad (non-domestic). The price used for goods intended for the domestic market is the so-called factory price, i.e. price at the factory gate, exclusive of taxes. The price of goods intended for export is the f.o.b. price (free on board).
The produce price index, non-domestic market (i.e. export price index) measures changes in the f.o.b. prices of export goods. Foreign-currency export prices are converted to EUR using the Bank of Finland’s mean rate for the statistical reference month.
The price data collected from enterprises are quantity weighted average prices. If the average price cannot be determined, the price data may also be the price of the delivery/billing/payment time on the 15th day of the month.
EU's EBS regulation asks to monitor the moment of order prices. However, turnover is not recorded at that particular time moment, which contradicts the coherence between statistics given the moment of order prices are followed in PPIs.
3.5. Statistical unit
Observation unit: KAU, i.e kind-of-activity unit.
Reporting unit: KAU.
3.6. Statistical population
POPULATION Manufactured products and industrial services belonging to the product groups B to E36 on CPA version 2.1.
FRAMES AND WEIGHT SOURCES National accounts: supply and use tables (SUT). Customs data on international trade. Statistics on industrial production (PRODCOM).
DESCRIPTION The calculation of producer price indices is based on a sample. The CPA product categories are sampled first, and then for each CPA product category enterprise sample is drawn. The price data used to calculate indices is collected from the enterprises included in the sample.
The frames of CPA product categories for the producer price indices are built by using the supply and use tables of national accounts and the international trade statistics of the Finnish Customs.
The frames of the data supplier sample are formed by using data from statistics on industrial output and from the international trade statistics of the Finnish Customs.
The enterprise sample frame for export is formed by using data from the international trade statistics of the Finnish Customs. The enterprise frame for production that remains on the domestic market is formed by using heading-specific data on enterprises from statistics on industrial output. Data on the enterprises’ exports by commodity heading are deducted from the values whereby the remaining figure describes the domestic supply.
COVERAGE CPA headings included to the statistics cover approximately 85 percent of the total value of sections B-E36. The value of the production/exports of small CPA product categories excluded from the sample was also taken into account in the forming of the weight structures. So-called rolling of representative values was used in the calculating of the weights. The rolling of representative values means that the CPA product categories included in the index get their value weight based on the gross value of the entire industry so that the product categories included from an industry share the gross value of that entire industry. Thus, through their weight structure, the CPA product categories included in the index also represent those product categories in their industry that are not included in the index.
3.7. Reference area
The geographical coverage is the whole country.
In export prices, we follow the current EBS regulation (data scope in the European sample scheme) for output prices for non-domestic market. In sampling, we do not sample any specific countries, we sample the area (euro area / non-euro-area). Enterprises included in the sample must select the country which is relevant inside the euro or non-euro-area. The countries included in the European sample scheme are up-to-date.
One of the main use of PPI is to be a deflator for national accounts and volume indices. That is why it is good to consider global issues also in price indices if possible.
Base year (the year on which the weights are based): 2020. Base period: 2021. Reference year (the year when the index equals 100): 2021.
Index.
Month.
In a few cases prices refer to the mid-month.
6.1. Institutional Mandate - legal acts and other agreements
Summary
The European Parliament and Council adopted the European Business Statistics (EBS) Regulation (EU) 2019/2152 on 27 November 2019, followed by the Commission Implementing Regulation 2020/1197 laying down technical specifications and arrangements pursuant to the mentioned EBS Regulation (General Implementing Regulation).
The structure of statistical metadata has been harmonised by Commission Recommendation of 23 June 2009 on reference metadata for the European Statistical System (Text with EEA relevance).
The Council Regulations (EC) concerning short-term statistics.
The Statistics Act (280/2004, amendment 361/2013).
Inquiry is mandatory. Sanctions are possible for non-respondents.
Responsibility for collecting, processing, and disseminating statistics
The Statistics Act (280/04) is the general act for the National Statistical Service (NSS). It contains the principles for the data collection, processing, and dissemination of official statistics. The act defines the roles of statistical authorities (Statistics Finland, Customs, National Institute for Health and Welfare, and Tike, Information Centre of the Ministry of Agriculture and Forestry) and other authorities producing statistics. The Statistics Finland Act (48/1992) states that Statistics Finland (SF) shall provide for the general development of official statistics in collaboration with other central government authorities.
The aim of the NSS is to produce official statistics, Official Statistics of Finland (OSF). European law (especially the Regulation of the European Parliament and of the Council on European statistics (EC) No 223/2009) applies to a large portion of OSF.
The Statistics Act requires that the primarily exploited sources for statistical purposes shall be the data accumulated in the administration of general government and the data produced as a consequence of the normal activities of employers, self-employed persons, corporations, and foundations. SF has the right to have access to these data under the Statistics Act. In addition, all public and private entities in Finland are obliged to provide SF with data on their finances, products and staff as necessary for the production of statistics. The right of SF to collect data by virtue of the obligation does not extend, however, to data that are kept confidential for reasons of international relationships, public safety, the interest of national defence, or the safety of the state. Before any data collection based on the obligation, the statistical authority must consult the respondents or their representatives about the contents, timing, collection methods, duration of storing of the data as well as about costs. Besides those data obtained directly from administrative sources data from natural persons are always collected on voluntary basis by using interviewing or mail and web surveys. In addition, the interviewees must be informed in advance in a written form.
The Statistics Act stipulates that a data provider who willfully fails to provide the obligatory data or willfully provides false data shall be sentenced to a fine. Nevertheless, SF is allowed to refrain from bringing charges if the violation is regarded as minor, but in practice charges have not been filed.
6.2. Institutional Mandate - data sharing
Data sharing and coordination among data producing agencies
According to the Statistics Act, data obtained by four statistical authorities may be released to other parties either if permitted by legal provisions explicitly concerning the NSS, or upon express consent of the subject of the data. As far as statistical authorities are concerned they are allowed to transmit confidential data with identifiers to each other if it is deemed necessary for the production of statistics. The same applies to the European Statistical System authorities (ESS Authorities). Co-ordination among data-producing agencies is normal practice at both specialist and top level.
Finnish PPI is reported monthly to Eurostat.
7.1. Confidentiality - policy
Confidentiality of individual reporters' data
Several legal acts guarantee that individual data should be kept confidential.
According to the Act on the Openness of Government Activities (621/1999) data collected for statistical purposes are confidential. The rule is not applied to the publicity of data describing the activities of central and local government authorities and production of public services or to certain data in the Register of Enterprises and Establishments.
Under the Statistics Act, statistics shall be compiled so that the respondents whom they concern are not directly or indirectly identifiable. Violation of the secrecy obligation is punishable under the Penal Code. At the EU level, similar assurances are included in Council Regulation (EC) No 223/2009.
Details regarding the protection of information on private individuals are laid down in the Finnish Personal Data Act (523/1999).
The Statistics Act obliges statistics-producing authorities to inform respondents in writing or in other appropriate manner about the intended use of the data, the procedures to be used in producing the statistics, the principles governing whether the provision of data is obligatory or voluntary, the rights of the respondents, the arrangements for protecting the data, and the duration the data will be stored.
The Statistics Act allows a statistical authority to grant access to confidential data for use in scientific research or statistical surveys if statistical units cannot be identified directly from them. The right to use data may be given in compliance with a well-defined process including a written application.
SF has implemented procedures to prevent disclosure of any individual data provider. It has published guidelines on how to apply the Statistics Act and the Personal Data Act, as well as guidelines on the protection of tabulated data on enterprises and individual persons. A section on data protection is included in the SF publication Quality Guidelines for Official Statistics. Micro data concerning individual persons released for scientific research are first edited to remove variables that would make it possible to directlyidentify individual persons such as name, address or personal identification number. Similar procedures are used with respect to sensitive information about units other than individual persons.
Confidentiality and reference to the Statistics Act are announced in the data collection questionnaire. Links to different acts on statistics and ethical principles are presented on the website of Statistics Finland. The guidelines on professional ethics of Statistics Finland have been published (Handbooks No 30, Statistics Finland, 2002).
Producer price index is a so-called "insider statistic", which cannot be released into public before the official publication. Employees have an obligation of secrecy.
7.2. Confidentiality - data treatment
The confidentiality of the information, prices, is taken into account when publishing the statistics: no information on individual enterprise can be deducted from the results.
If the price movements of single enterprise can be detected from any 1-, 2-, 3- or 4-digit CPA level index, then that index series is flagged as confidential data.
No one has prior access to the statistics before their general release. Index series are transmitted to Eurostat on the same day they are published in Finland. The transmission is done via Edamis by using SDMX coding system.
8.2. Release calendar access
Advance release calendar
A release schedule for the coming year, specifying precise dates of release, is published in the Release Calendar in December by Statistics Finland. The calendar is available on the website of Statistics Finland https://stat.fi/en/future-releases.
8.3. Release policy - user access
Summary
Indices are published simultaneously to all interested parties at statistics’ homepage. No one has prior access to the statistics before their general release.
A news release is made monthly available to the media and the public on statistics homepage.
It’s possible to order news notifications and/or RSS feeds from Statistics Finland:
Disclosure of terms and conditions for statistical collection, processing, and dissemination
Information on and links to the legislation governing SF are available on its website and in the Library of Statistics. There is a special service on the Internet for those obliged to give information to SF, The data collections section. All statistics compiled by SF have a homepage of their own, with a permanent Internet address (stat.fi/name of statistics). In addition to statistical data, these homepages contain a large set of metadata concerning the statistics in question.
ARelease Calendar of statistics is available on SF’s website.
Statistical publications include SF’s general contact information and references where more specific information can be found. SF’s Information Service (Tel.: +358 29 551 2220) provides information on the collection, processing and dissemination of statistics, too.
Internal governmental access to statistics prior to release
There is no internal governmental access to data before their release to the public. No ministerial commentary is attached to released data.
Attribution of statistical products
Publications contain a statement that quoting is encouraged provided SF is acknowledged as the source.
OSF publications cannot be published under the name of an individual author. The publications (printed and web versions) can be identified from the OSF label/ are labelled with the OSF logo. Release guidelines for Official Statistics of Finland.
Simultaneous release
The key results are released simultaneously to all interested parties on predefined days on the home page of the statistics.
According to the Act on the Openness of Government Activities, statistical data considered as sensitive information may not be disclosed to a third party prior to their publication. Price indices are included in this group as the published figures may have an influence on the capital and financial markets. Statistics Finland makes the decision on the sensitivity of statistics, including their intended publication dates.
Monthly.
Producer price indices are published on the 24th day of the month following the statistical reference month or on the first working day following it (except January's statistics that is published a couple of days later due to changes to the weight structure of the index, and November's statistics that is released on the last weekday preceding 24 December).
The latest index figures are analyzed, and index figure tables and database are updated.
The producer price index measures average changes in the prices of goods sold by domestic producers. The index includes both goods sold at home (domestic) and goods sold abroad (non-domestic). The produce price index, non-domestic market (i.e. export price index) measures changes prices of export goods. The coverage in the publication is domestic, non-domestic and total. Coverage of product categories included in producer price indices of total value:
Producer Price Index for Manufactured Products 85%
Export Price Index 76%
Import Price Index 81%
Basic Price Index for Domestic Supply/Basic Price Index for Domestic Supply, Including Taxes 84%
Statistics Finland's researcher services offer unit-level data, i.e. micro data, for scientific studies and statistical surveys. The conditions and rules with respect to data access can be found on the home page http://stat.fi/tup/mikroaineistot/index_en.html
10.5. Dissemination format - other
Data are sent to Eurostat.
Dissemination on request
Tailored tables and data files are provided for a fee.
International recommendations on producer price index are followed, thus links below to IMF's manuals concerning producer price index and export and import price index, as well as Eurostat's handbook on price and volume measures in national accounts:
Advance notice of major changes in methodology, source data, and statistical techniques.
Advance notice is given to the public when major changes are introduced in methodology, sources, and statistical techniques. Information on revisions in statistics. In the case of major changes, briefings for the main users and press will be organised.
Quality management requires comprehensive guidance of activities. The principles of the European Foundation for Quality Management (EFQM principles) are employed by Statistics Finland as its overall framework for quality management. The quality management framework of the field of statistics is the European Statistics Code of Practice (CoP). The frameworks complement each other. The quality criteria of Official Statistics of Finland are also compatible with the European Statistics Code of Practice. Further information on Statistics Finland's website: https://www.stat.fi/org/periaatteet/laadunhallinta_en.html
Impartiality of statistics
Section 11 of the Finnish Statistics Act contains the requirement that statistics should be as reliable as possible, give a truthful picture, and make use,if possible, of uniform concepts, definitions, and classifications, as well as be timely. Similar provisions can be found in EU legislation. The Statistics Act, the Statistics Finland Act, and the Council of State Decree on Statistics Finland (1063/2002) and several other legal provisions support SF’s professional independence:
Section 3 of the Statistics Finland Actdecrees that the internal organisation of SF is defined in internal Rules of Procedure which are decided by SF’s Director General (DG);
Section 1 of the Council of State Decree on SF gives the DG the right to manage the activities and finances of SF;
Section 5 of the Council of State Decree lays down that the DG shall be appointed by the Council of State for a fixed term. The nomination is made after open competition. The Decree also gives the DG the right to appoint the staff of SF, including directors of the departments as well as other staff members unless the decision-power has been delegated in the Rules of Procedure to some other official of SF;
Section 10 of the Statistics Act provides that data processing shall take place in accordance with good statistical practice and the international recommendations and procedures generally applied in the field of statistics.
Selection of sources, methodology, and modes of dissemination
The selection of sources, methodology and modes of dissemination of SF statistics are decided by SF alone. According to the Statistics Act, the choice of data sources, statistical techniques, and methods of dissemination should be based on statistical considerations (Sections 3, 10, 11, and 12). There are also responsibilities regarding cost-efficiency and the response burden of data collections (Section 4).
Guidelines for staff behavior
On the basis of international recommendations SF has confirmed its own Guidelines on Professional Ethics. All employees are given a copy of this handbook. https://urn.fi/URN:ISBN:978–952–244–508–7
An internal ethical board meets regurlarly and reports on its decisions and discussions on the intranet open to all staff of SF.
11.2. Quality management - assessment
Dissemination of documentation on concepts, scope, classifications, basis of recording, data sources, and statistical techniques
The quality description of the statistics, as well as concepts and definitions (in Finnish, English and Swedish), are available on the home page of the statistics: https://www.stat.fi/en/statistics/documentation/thi
Accuracy and reliability There are several possible sources of bias in the producer price index for services. These sources of bias include:
sampling error
deficient product and enterprise frameworks
non-response
quality changes in service products included in price collection
substitution bias
Timeliness and punctuality The producer price indices are published on the 24th day of the month following the statistical reference month or on the first working day following it. As an exception to this rule, the statistics for January is published a couple of days later due to changes to the weight structure of the index, and the statistics for November is released before 24 December. The data are published on the days indicated in the release calendar.
Coherence and comparability European definitions according to the European business statistics regulation are used in the production of the statistics, so the data of the statistics are internationally comparable and cover the whole of Finland.
In connection with the adoption of the base year 2015, the calculation method of indices was also revised. From 2019 onwards, the producer price index is an annual chain index. In practice, the shift to the chain-linked index method means that the weight structure of the producer price index is updated every year. The new weight structure takes effect starting from the index for the first month of each year. The base year of the index remains unchanged (now 2021=100).
12.1. Relevance - User Needs
EU’s EBS regulation is fully met, and user needs are considered almost fully met.
Sometimes price indices are asked in a very detailed - and not public - level. Furthermore, due to the data confidentiality rules, not every index series is public. (Researchers) Access to the micro data is improved as Statistics Act was amended.
Users' requirements for long time series are dealt with nationally published 1949=100 indices.
Main users, and uses:
National accounts, and other statistics, such as volume index of industrial output;
Bank of Finland;
Government;
Research institutions;
Eurostat;
ECB;
IMF;
Market analysts;
Enterprises;
Media;
Fixed value and volume calculations (V=P*Q);
Index escalation; trade deal negotiations;
Economic follow-up and forecasting;
Budgeting and follow-up.
12.2. Relevance - User Satisfaction
Monitoring user requirements
Co-operation between SF and important users with regard to the relevance of statistics and the users’ needs consists of an extensive feedback system and co-operative working groups with the main users, such as users of national accounts. There are regular meetings of SF directors and experts with the users, even at the senior management level. Users are usually also invited to participate in discussions concerning the establishment of new statistics or revisions of existing ones.
In addition, there are specific feedback systems for receiving the users’ opinions at SF. These systems consist of an anonymous feedback channel on the web, media monitoring, surveys among different user groups for the evaluation SF’s performance, user surveys (every second year), and a system for collecting and disseminating information that is strategically important for SF. Specific statistical products conduct their own user surveys and keep in regular contact with their main interest groups.
12.3. Completeness
In some occasions price indices are asked by users at a very detailed level.
Sometimes users are looking for very long time series, these requirements can be dealt with nationally published 1949=100 indices.
EBS requirements are fulfilled.
13.1. Accuracy - overall
Possible error sources, list is not exhaustive. Bias may occur up- or downward, and its degree varies. Statistics Finland has not estimated the accuracy of producer price index, i.e. difference between estimated index figures and population values. As an expert assesment, producer price index is concidered unbiased and rather accurate.
Indeficiencies in product and enterprise frames;
Sampling error;
Outdated weight structures due to structural changes in economy;
Handling of new products entering and old one exiting from the market;
Measurement difficulties in unique/one-off products;
Uncertainty of imputation models;
Substitution bias and other issues related to Laspeyres index formula.
Index figures are not subject to revisions.
13.2. Sampling error
Sampling error is always associated with sampling (as only one sample realisation from population is utilized). Sampling error can be measured with standard error - and confidence intervals. Confidence intervals have not been estimated for producer price indices.
CPA products are cut-off sampled in the producer price index, meaning that all the significant - measured by a value share of total production / export - are picked. It is possible, albeit considered unlikely, that not covered products could bias index figures.
The included CPA products cover approximately 85 percent of the total production / export value.
To actually price monitor CPA products and calculate price indices, price reporting enterprises are sampled within a CPA product as a stratified sampling based on the value share of production / export in that specific heading. All the dominant enterprises are sampled with probability one; a value share over 50 percent, or two largest enterprises contribute over 80 percent. If the price development divers strongly between enterprises within a CPA heading and sampled enterprises do not cover CPA product sufficiently, accuracy may deteriorate. Currently the size of enterprise sample is regarded satisfactory.
13.3. Non-sampling error
The response rate reaches 96-99%. Size weighted unit response rate in 2023 was 97.1 %. Reminder calls and e-mails are used to maintain high response rate. Online price data collection system is actively developed in order to reduce the response burden and obtain data of good quality. Double checks and error listings are used to avoid prosessing errors.
Producer price indices use the Laspeyres index formula. Scientific literature on indices often refers to the substitution bias that the Laspeyres index formula may create. The direction of the bias depends on the target of measurement. In the case of the producer price index, substitution bias may arise because (when maximizing their profits) enterprises react to changes in relative prices by changing their production volumes. For example, if the price of light fuel oil rises relative to petrol, an enterprise engaged in the oil industry can produce more light fuel oil. Then an index calculated with the Laspeyres formula underestimates price development from the enterprises’ perspective. The significance of the substitution bias depends on the scale at which individual enterprises are able to redirect their production when relative prices change.
Producer price indices may contain a bias resulting from the entry of new products on the market. When speaking of new products reference is often made to electrical products whose production and sales can grow quite rapidly in the course of a five-year time span. If the change is vigorous, the index may not describe sufficiently accurately the average development in the prices of the commodities produced in the economy. However, in practice the bias caused by new products is not significant, because below the 4-digit level of the industrial classification a new commodity can be added to the index price monitoring if its production and sales volumes have increased significantly.
The objective of producer prices indices is to describe pure price development, which is why changes in the quality of products must be taken into consideration in their calculations. The problem of quality change is usually encountered either when a data supplier reports that a variant on which data are collected is no longer produced, imported or exported, or that changes have been made to the variant concerned. Changes in quality may cause error in the index as the defining of a pure price change can be difficult and, conversely, the proportion of a price change that is due to changed quality is difficult to estimate and eliminate from calculations. If, as a product changes, we assume that the entire price change is due to a change in quality, we may disregard genuine changes in price, whereby the index does not change at all for the commodity in question. If, then again, we assume that the entire price change is due to a genuine change in price, we may disregard changed quality and the index changes too much.
In the first place, efforts are made to collect an overlapping price observation for the changed product. In practice, this means that as the product changes the price of the preceding quarter is collected in addition to the price of the reference quarter. This allows the change in price to be calculated and the price history stays unbroken despite the change in the monitored product. The idea of the method is based on an assumption of perfect markets and rational consumers: prices of similar products must be the same at a certain time point, or conversely, the price difference on the market indicates that the qualities of the products differ from each other. Because the products have been available on the market at the same time point, the price difference of the product must be equal to the quality difference, because buying of an overpriced products is not justified.
If overlapping observations cannot be obtained, in some cases the old price can be carried forward. The method is applied in the Producer Price Indices only if the price of the product to be monitored is not obtained for some reason during the statistical reference quarter and the price development of the product concerned is stable. If the data are not obtained in two successive quarters, the data supplier is requested to select in its place a new product (case: a permanently missing observation). The price of a temporarily missing observation can thus be carried forward if it is a product with a stable price development. In contrast, the missing prices of products with a volatile price development are always imputed by means of other corresponding products or the price development in the industry. Imputation is based on the assumption that the price development of a certain product is the same as that of corresponding products. Permanently missing products are replaced with new products.
Use of the following methods can also be optionally used in quality change cases:
The quality of the changed product is assumed to be the same as that of the earlier product. In this case, the price change is allowed in the index as such.
The price change is assumed to derive entirely from a change in quality, in which case the index does not change at all as the product changes.
Quantity adjustment is used if the occurred price change derives fully or partially from a change in the quantity of the monitored product.
An expert assessment where the data supplier is asked to assess which proportion of the price change is a pure change in price and which proportion is due to a change in the quality of the product. Then the impact of a quality change is eliminated from the price change. The expert assessment is based on the idea that the data supplier enterprise is best equipped to assess the price development and formation of its own products.
An expert assessment based on some other source. Discretionary changes may be made in certain cases to the index if more accurate information on the development of the price of an examined product is available from some other source. This may also be done if for some reason the employed method does not measure the realised development correctly, e.g. by ignoring some significant change that has taken place on the market.
Methodologies to control for changes in quality are constantly being developed and international guidelines and recommendations are taken into account when applying different methods.
14.1. Timeliness
Indices are published 24 days after the end of the reference month, thus lag is 24 days.
14.2. Punctuality
No delays have occurred; indices have been published according to the prescheduled release calendar.
15.1. Comparability - geographical
No geographical dimension; Finland as a whole.
15.2. Comparability - over time
As a rule, STS time series start at 01/2000. However, special industry aggregates designated in Eurostat's GESMES manual start from 01/2015.
Nationally the 2021=100 producer price indices are backcasted to 1995 at 2-digit CPA level.
In a need of longer index time series, the nationally published 1949=100 producer price indices may be utilized.
15.3. Coherence - cross domain
On statistics concerning economical trends, Statistics Finland emphasises coherence between values, prices and volumes (V=P*Q). Especially focus is on the volume measures obtained from the volume index of industrial output and national accounts (trend indicator of output, quarterly and annual national accounts). Producer price indices are utilised as deflators, thus compatibility is essential.
In Statistics Finland we have formed a deflation group which main task is to ensure the coherence of deflators used in volume statistics and in national accounts.
Suspicious volume measures are checked, and data on values and prices examined in order to obtain correct estimates.
15.4. Coherence - internal
2021=100 and 2015=100 producer price index aggregates are consistent in the aggregation. Starting from 2019, indices are annual chain-linked indices and the weights are updated annually.
The backcasted index series are not consistent in aggregation due to the calculation method (chaining) that was utilized in backcasting. Backcasting was executed by taking the new base year index figures backwards with monthly changes from previous base year indices. As a results, history is not “rewritten”: monthly and annual changes correspond to once published figures. For example, 2015=100 series are backcasted with the 2010=100 monthly changes starting from 12/2014. However, because of chaining, backcasted sub-aggregates do not yield higher-level aggregates.
A part of non-domestic prices are not split between euro zone and non-euro zone, and this might cause problems related to coherence between PREN, PREZ and PREX. PREN ^= euro area prices + non-euro area prices, but instead PREN = euro area prices + non-euro area prices + prices which have no area.
The costs below are the total costs on compiling PPI: Hours spent on the compilation of producer price index at Statistics Finland is approximated (costs):
Producer prices, domestic market = 1050 hours / year
Producer prices, non-domestic market = 880 hours / year
Hours spent as respondents fill the PPI inquiries (burden):
Producer prices, domestic market = 1450 hours / year
Producer prices, non-domestic market = 1230 hours / year
Staff, facilities, computing resources, and financing
At the end of 2023, Statistics Finland employed 777 persons. Staff-years totalled 735 in 2023, of which interviewers accounted for 91. The number of staff-years was 6 less than in the year before.
Statistics Finland's total operating costs amounted to EUR 63.7 million in 2023. Compensation of employees accounted for 70 per cent of all expenditure.
The total funding available to Statistics Finland was EUR 80.1 million. EUR 53.9 million were appropriated from the national budget for Statistics Finland's operating expenses. Appropriations carried forward from the previous year totalled EUR 11.8 million. Co-operation projects and external funding constituted other important sources of financing: a total of EUR 3.0 million were received from these. Revenues from charged activities were of the same magnitude as in the previous year and totalled EUR 11.3 million. EUR 12.2 million of the appropriations were carried forward to 2024.
Ensuring efficient use of resources
The annual performance targets based on the strategic plan are set and followed according to a performance management system and scorecards. Performance agreements are made and followed both at the office level with the Ministry of Finance, and at the department level between the Director General and the directors of the departments. The full costs of compiling statistics, including staff costs and computers used, are measured.
A formal review of staff performance and competence is conducted annually in discussions with individual staff members (personal appraisal discussions).
17.1. Data revision - policy
Producer price indices are not subject to revisions. The same revision policy is applied to STS data released nationally and transmitted to Eurostat.
Release calendar is discussed in a chapter 8.1.
17.2. Data revision - practice
Producer price indices are not revised, no revision for the year 2023; MAR=0 AND MR=0. Methodological changes are announced at the time of change; essential changes, such as changes in the classification, are informed beforehand on statistics homepage.
Rebasing for the base year 2015=100
When rebasing statistics, a part of time series is re-calculated with updated weights. Hence index figures are "revised". For example, 2015=100 index was nationally introduced in the beginning of 2018. Years 2015, 2016 and 2017 were calculated using a new set of weights and enterprises, and consequently, the results, monthly and annual changes, differed from 2010=100 results concerning years 2015, 2016 and 2017.
Backcasting is executed by taking the new base year index figures backwards with "old" monthly changes. As a results, history is not "rewritten": monthly and annual changes correspond to once published figures. For example, 2015=100 series are backcasted with 2010=100 monthly changes starting from 12/2014. However, because of chaining, backcasted sub-aggregates do not yield higher-level aggregates.
Rebasing for the base year 2021=100
With the annual chain index method, there are no revisions between base years 2015=100 and 2021=100. Time series until the beginning of year 2024 for the 2021=100 index are calculated by rebasing the 2015=100 index series.
Nationally published annual and monthly change rates may differ by 0,1 percentage points between the base years due to calculation method: change rates are calculated from index point figures truncated to two decimal places.
18.1. Source data
Price data set is based on a sample survey. Majority of price data is collected directly from enterprises; few prices are obtained from other sources, such as other price statistics.
SAMPLE FRAMES The producer price indices’ CPA heading frame has been produced using the data of national accounts supply and use tables. The frames of the data supplier sample have been formed on the basis of data obtained from industrial commodity statistics and Finnish Customs statistics on international trade. The enterprise sample frames for export and import are obtained from Customs statistics on international trade. As regards production staying in the domestic market, the enterprise frame was formed on the basis of CPA heading specific enterprise data obtained from statistics on industrial commodities and Customs data.
SAMPLING The sampling solution followed three main steps (first CPA headings and then enterprises). (1) The CPA heading samples, selection of the CPA headings to be included in the index, were drawn as a cut-off: all of the significant products are picked. The coverage aim is approximately 90 percent value share of the total production / export value.
(2) The enterprise sample was drawn using stratified sampling. Stratification was based on the value of the enterprises’ domestic supply/exports/(imports). A simple random sampling was done within the strata. The dominant enterprises in each heading were, however, selected to the sample with a probability of one. The number of enterprises selected for each heading depended on the size of the entire frame. The more enterprises in the strata, the more enterprises were selected from it.
Group
Number of strata
1
1 (1-3 dominant enterprises)
2
2 (one dominant/others)
3
2 (two dominant/others)
4
2 (large/small)
5
3 (large/medium/small)
(3) The products, variants, selected for actual price monitoring were selected in co-operation with data suppliers. The objective is that the monitored product would be as representative as possible and its price could be monitored as well as possible.
Table below gives the numbers of the data suppliers, CPA product categories and price data for the producer price indices.
Index
No. of data suppliers
No. of headings
No. of price data
Producer Prices, domestic
470
489
2,540
Producer Prices , non-domestic
350
310
1,200
Import Price Index
670
570
2,400
The samples of CPA product categories and enterprise data suppliers included in producer price indices are generally revised annually; starting from 2019, the producer price indices adopted an annual chain-linked index, which means the sample is updated and maintained annually.
18.2. Frequency of data collection
Prices are, as a principal rule, collected monthly. However, some prices are collected less often due to practical reasons. The proportion of price data collected less often than quarterly of all price data is roughly one-fourth.
Price should be a quantity weighted average price for the reference month, but in some cases it refers to a mid-month price.
18.3. Data collection
PPI staff carry out the price collection.
Most of the price data is collected by an online survey. Few informants report price data with email and price inquiry as an attachment file. Automated email senders are utilized.
As price collection starts, a suggestion for informants to report reference month’s prices is sent via email. Reminders are also sent via email. Eventually informants are contacted by telephone, if they have missed the deadline.
PPI software provides relevant listings for monitoring the data collection.
On the development of the online survey, focus has been on user-friendliness in order to reduce response burden and improve data quality.
Non-response rate varies between 1 to 4 percent. Size weighted unit response rate in 2023 was 97.1 %.
Non-responders and inliers are studied on a regular basis in order to avoid systematic errors on results. Enterprise samples are updated annually.
18.4. Data validation
Price data are further examined if
Substantial monthly or annual price change; fixed checking limits for products;
Absolute value of price change contributes over 0.01 percentage points to the monthly change, and respectively over 0.02 percentage points to the year-on-year change;
Variant’s any price-determining characteristic is changed;
Inconsistencies in a price development within same phenomenon (e.g. prices of oil products are not developing in a consistent manner between enterprises, or product category prices are not “well-behaving” within enterprise).
When necessary, informants are contacted for further information.
STS validation levels 1 - 5
STS data transmissions to Eurostat are automated. IT software generates required .xml-files. Metadata part and content are examined before transmission to Eurostat.
All the validation concerning consistencies and plausibility of index figures is carried out - as well as all the information within and outside Statistics Finland is exploited - before .xml-files are generated and send to Eurostat.
18.5. Data compilation
CALCULATION
The overall indices describe the average development in the prices of the CPA headings included in the index.
The individual products whose prices are monitored, or variants, reported by an enterprise do not have their own weights but the enterprise-specific CPA product category indices, or micro indices, are calculated as the geometric average of the price ratios (=current price/price at base period) of the products belonging to that category.
The micro indices are combined into an overall index with a weight coefficient corresponding to each product category and enterprise. In other words, changes in the price ratios of individual commodities have different-sized effects on the overall index.
At the 4-digit level of the CPA product classification, the producer price indices are Laspeyres indices. Below the 4-digit level, the weights can be revised as necessary and new commodities or data suppliers included in the index.
WEIGHTS
The values of domestic production, imports and exports for the forming of the weights were obtained from the supply and use tables of national accounts, statistics on industrial output and from Finnish Customs' statistics on international trade. The latest data from the supply and use tables of national accounts concerned the year 2020. Additional corrections to the weight structure were made for oil products; the 2020 data were not considered to be representative considering the 2022 weight structure, so the 2019 structures were used as starting data for oil products. The detailed commodity structures are based on data concerning 2021. Starting from 2019, an annual chain index method is used in the indices, which means that the weight structures of the indices will be updated annually.
The forming of weights was started by deducting re-exports from the values of imports and exports, and exports from domestic values. This yielded for imports the value of imports remaining in Finland, for export the value of exports of goods produced in Finland only and for domestic supply the value of production remaining in Finland.
The value of the production/exports/imports of small CPA product categories excluded from the sample was also taken into account in the forming of the weight structures. So-called bootstrapping of representative values was used in the calculating of the weights. The bootstrapping of representative values means that the CPA product categories included in the index get their value weight based on the gross value of the entire industry so that the product categories included from an industry share the gross value of that entire industry. Thus, through their weight structure, the CPA product categories included in the index also represent those product categories in their industry that are not included in the index.
18.6. Adjustment
Producer price indices are “pure” price indices, which are not affected by changes in the quality of the products. Efforts are made to eliminate from the index price changes that are caused by changes in quality. Both the physical and financial (such and conditions on financing, guarantee, whether product is sold to a wholesaler or retailer) characteristics of a product must remain unchanged. In practice, product characteristics change continuously. Qualitative changes and their treatment are among the main challenges in index calculations. In producer price indices changes in quality are controlled for with several methods to make sure that the best possible method for measuring price change is always used.
For some products, such as agricultural products and clothing, prices are quoted only in those months in which the commodity is most typically sold, and the last observation is carried forward throughout the off-season.
Producer price indices are not calendar or seasonally adjusted. By examining annual changes, “seasonal adjustment” is implicitly done as same months are compared.
Not available.
Industrial producer prices / Producer price indices for industry.
The producer price index measures average changes in the prices of goods sold by domestic producers. The index includes both goods sold at home (domestic) and goods sold abroad (non-domestic). The price used for goods intended for the domestic market is the so-called factory price, i.e. price at the factory gate, exclusive of taxes. The price of goods intended for export is the f.o.b. price (free on board).
The produce price index, non-domestic market (i.e. export price index) measures changes in the f.o.b. prices of export goods. Foreign-currency export prices are converted to EUR using the Bank of Finland’s mean rate for the statistical reference month.
The price data collected from enterprises are quantity weighted average prices. If the average price cannot be determined, the price data may also be the price of the delivery/billing/payment time on the 15th day of the month.
EU's EBS regulation asks to monitor the moment of order prices. However, turnover is not recorded at that particular time moment, which contradicts the coherence between statistics given the moment of order prices are followed in PPIs.
Observation unit: KAU, i.e kind-of-activity unit.
Reporting unit: KAU.
POPULATION Manufactured products and industrial services belonging to the product groups B to E36 on CPA version 2.1.
FRAMES AND WEIGHT SOURCES National accounts: supply and use tables (SUT). Customs data on international trade. Statistics on industrial production (PRODCOM).
DESCRIPTION The calculation of producer price indices is based on a sample. The CPA product categories are sampled first, and then for each CPA product category enterprise sample is drawn. The price data used to calculate indices is collected from the enterprises included in the sample.
The frames of CPA product categories for the producer price indices are built by using the supply and use tables of national accounts and the international trade statistics of the Finnish Customs.
The frames of the data supplier sample are formed by using data from statistics on industrial output and from the international trade statistics of the Finnish Customs.
The enterprise sample frame for export is formed by using data from the international trade statistics of the Finnish Customs. The enterprise frame for production that remains on the domestic market is formed by using heading-specific data on enterprises from statistics on industrial output. Data on the enterprises’ exports by commodity heading are deducted from the values whereby the remaining figure describes the domestic supply.
COVERAGE CPA headings included to the statistics cover approximately 85 percent of the total value of sections B-E36. The value of the production/exports of small CPA product categories excluded from the sample was also taken into account in the forming of the weight structures. So-called rolling of representative values was used in the calculating of the weights. The rolling of representative values means that the CPA product categories included in the index get their value weight based on the gross value of the entire industry so that the product categories included from an industry share the gross value of that entire industry. Thus, through their weight structure, the CPA product categories included in the index also represent those product categories in their industry that are not included in the index.
The geographical coverage is the whole country.
In export prices, we follow the current EBS regulation (data scope in the European sample scheme) for output prices for non-domestic market. In sampling, we do not sample any specific countries, we sample the area (euro area / non-euro-area). Enterprises included in the sample must select the country which is relevant inside the euro or non-euro-area. The countries included in the European sample scheme are up-to-date.
One of the main use of PPI is to be a deflator for national accounts and volume indices. That is why it is good to consider global issues also in price indices if possible.
Month.
In a few cases prices refer to the mid-month.
Possible error sources, list is not exhaustive. Bias may occur up- or downward, and its degree varies. Statistics Finland has not estimated the accuracy of producer price index, i.e. difference between estimated index figures and population values. As an expert assesment, producer price index is concidered unbiased and rather accurate.
Indeficiencies in product and enterprise frames;
Sampling error;
Outdated weight structures due to structural changes in economy;
Handling of new products entering and old one exiting from the market;
Measurement difficulties in unique/one-off products;
Uncertainty of imputation models;
Substitution bias and other issues related to Laspeyres index formula.
Index figures are not subject to revisions.
Index.
CALCULATION
The overall indices describe the average development in the prices of the CPA headings included in the index.
The individual products whose prices are monitored, or variants, reported by an enterprise do not have their own weights but the enterprise-specific CPA product category indices, or micro indices, are calculated as the geometric average of the price ratios (=current price/price at base period) of the products belonging to that category.
The micro indices are combined into an overall index with a weight coefficient corresponding to each product category and enterprise. In other words, changes in the price ratios of individual commodities have different-sized effects on the overall index.
At the 4-digit level of the CPA product classification, the producer price indices are Laspeyres indices. Below the 4-digit level, the weights can be revised as necessary and new commodities or data suppliers included in the index.
WEIGHTS
The values of domestic production, imports and exports for the forming of the weights were obtained from the supply and use tables of national accounts, statistics on industrial output and from Finnish Customs' statistics on international trade. The latest data from the supply and use tables of national accounts concerned the year 2020. Additional corrections to the weight structure were made for oil products; the 2020 data were not considered to be representative considering the 2022 weight structure, so the 2019 structures were used as starting data for oil products. The detailed commodity structures are based on data concerning 2021. Starting from 2019, an annual chain index method is used in the indices, which means that the weight structures of the indices will be updated annually.
The forming of weights was started by deducting re-exports from the values of imports and exports, and exports from domestic values. This yielded for imports the value of imports remaining in Finland, for export the value of exports of goods produced in Finland only and for domestic supply the value of production remaining in Finland.
The value of the production/exports/imports of small CPA product categories excluded from the sample was also taken into account in the forming of the weight structures. So-called bootstrapping of representative values was used in the calculating of the weights. The bootstrapping of representative values means that the CPA product categories included in the index get their value weight based on the gross value of the entire industry so that the product categories included from an industry share the gross value of that entire industry. Thus, through their weight structure, the CPA product categories included in the index also represent those product categories in their industry that are not included in the index.
Price data set is based on a sample survey. Majority of price data is collected directly from enterprises; few prices are obtained from other sources, such as other price statistics.
SAMPLE FRAMES The producer price indices’ CPA heading frame has been produced using the data of national accounts supply and use tables. The frames of the data supplier sample have been formed on the basis of data obtained from industrial commodity statistics and Finnish Customs statistics on international trade. The enterprise sample frames for export and import are obtained from Customs statistics on international trade. As regards production staying in the domestic market, the enterprise frame was formed on the basis of CPA heading specific enterprise data obtained from statistics on industrial commodities and Customs data.
SAMPLING The sampling solution followed three main steps (first CPA headings and then enterprises). (1) The CPA heading samples, selection of the CPA headings to be included in the index, were drawn as a cut-off: all of the significant products are picked. The coverage aim is approximately 90 percent value share of the total production / export value.
(2) The enterprise sample was drawn using stratified sampling. Stratification was based on the value of the enterprises’ domestic supply/exports/(imports). A simple random sampling was done within the strata. The dominant enterprises in each heading were, however, selected to the sample with a probability of one. The number of enterprises selected for each heading depended on the size of the entire frame. The more enterprises in the strata, the more enterprises were selected from it.
Group
Number of strata
1
1 (1-3 dominant enterprises)
2
2 (one dominant/others)
3
2 (two dominant/others)
4
2 (large/small)
5
3 (large/medium/small)
(3) The products, variants, selected for actual price monitoring were selected in co-operation with data suppliers. The objective is that the monitored product would be as representative as possible and its price could be monitored as well as possible.
Table below gives the numbers of the data suppliers, CPA product categories and price data for the producer price indices.
Index
No. of data suppliers
No. of headings
No. of price data
Producer Prices, domestic
470
489
2,540
Producer Prices , non-domestic
350
310
1,200
Import Price Index
670
570
2,400
The samples of CPA product categories and enterprise data suppliers included in producer price indices are generally revised annually; starting from 2019, the producer price indices adopted an annual chain-linked index, which means the sample is updated and maintained annually.
Monthly.
Producer price indices are published on the 24th day of the month following the statistical reference month or on the first working day following it (except January's statistics that is published a couple of days later due to changes to the weight structure of the index, and November's statistics that is released on the last weekday preceding 24 December).
Indices are published 24 days after the end of the reference month, thus lag is 24 days.
No geographical dimension; Finland as a whole.
As a rule, STS time series start at 01/2000. However, special industry aggregates designated in Eurostat's GESMES manual start from 01/2015.
Nationally the 2021=100 producer price indices are backcasted to 1995 at 2-digit CPA level.
In a need of longer index time series, the nationally published 1949=100 producer price indices may be utilized.
