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National reference metadata

Czechia

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.

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Service producer prices

National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Czech Statistical Office (CZSO).

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Services Producer Price Index (SPPI).

SPPI is an indicator monitoring price movements and measuring inflationary pressures on the market of services. The main purpose of the index is to provide the average monthly price changes of market services on the Czech domestic market. The index was originally designed to be used (and is it still used) as a deflator in the calculation of volume indices.

SPPI is a „selection index“ based on monitoring the prices of selected services provided by companies that significantly represent, in terms of share of total sales, a given group or class of services. The services (representatives) are further defined by the measurement unit, their utility parameters and business and payment terms.

Agricultural, Construction, and Services Prices Statistics Unit observes prices provided by one economic entity to another one. These prices are used for calculation of SPPI for business sector, also called business to business index, abbreviated B2B index. B2B indices reflect relationships between business companies that are not offering services to a final customer on a mass scale.

However, the data for Eurostat are designed as business to all indices that are a combination of business to business indices and business to consumer indices.

1 May 2024

Statistical variables are collected by monthly survey using price questionnaire „Monthly report on the prices of market services“ that includes 31 variants. Each variant contains selected sections of given activities.

The list of main variables in the survey:

  • Price of the given market service in a previous period
  • Price of the given market service in a monitored period
  • Total sales of the given market service in a previous year

The prices are followed without VAT and they are surveyed in predefined units for each service separately. If the prices are listed in different currency than the Czech one, the prices are converted to the national currency based on the average monthly exchange rate of the specified currency. Valid exchange rates are taken from Exchange List of the Czech National Bank.

 

Differences:

  • Prices of representatives J59 and J60 (within CPA Classification) are collected from the internet or other sources.

Reporting and observation unit is enterprise identified by national business register.

The statistical population are all market enterprises with main activity in mentioned activities within CPA Production Classification. For each market service, statistical units are selected on the basis of significant representation in terms of total sales that are surveyed by yearly statistical survey „Annual report of economic entities of selected production sectors“.

The whole Czech Republic.

Monthly in internally and quarterly in dissemination to Eurostat. 

Overall accuracy is good. Price information from sample survey is checked by the special central office staff.

The most significant sources of errors are: non-response and sampling errors. These problems are solved personally during the first level of processing the data.

Overall assessment:

  • SPPI satisfies the principle of accuracy as it describes development of producer prices.
  • Sampling error is not systematically measured.
  • Data released are final.
  • Response rate is reasonable.

 

Number of reporting units: about 600.

Number of price representatives: about 200.

Number of observation: about 2100.

Index.

Estimates for non-response: A justified estimate, which is provided by the reporting enterprise; repeating previous period prices.

Estimates for grossing-up to population levels: None.

Type of index: Modified Laspeyres index.

Method of weighting and chaining: The constant weight 2021 – domestic sales. Usually weighting scheme is updated every 5 years.

Planned changes in production methods: None.

Type of source: Monthly statistical sample survey „Monthly report on the prices of market services“.

Frame on which the source is based: Register of economic subjects.

Sample or census: Choice of market services and choice of reporting units is a sample.

Criteria for stratification: Criteria for selecting reporting units: reporting units are selected from the yearly SBS survey according to the domestic sales in the individual 3, 4 or 5-digit CPA Classification. Criteria for selecting products: products are selected within 6-digit CPA Classification.

Threshold values and percentages: Not available.          

Frequency of updating the sample: Sample of reporting units – continuously during a year, mainly in case of a cessation of firm or a change of activity of firm. Sample of products - continuously. Updating of products to 6-digit CZ-CPA is carried out continuously. New selection during the revision every five years.         

Replacement of Representatives and respondents: Statistical monitoring of price developments, seeking to capture the pure, untouched side-effects of inflation, based on the general principle of price monitoring for load, comparable quality and services provided under the same conditions (sales, delivery, payment, etc.). As a tool for dealing with these facts helps us confusion of Representatives and the substitution of respondents.

Quality adjustment: Quality adjustment is used to eliminate the effects of changes in the monitored quality of Representatives on identifying price trends and allows us to determine the net price development. Performed during the monthly processing, but it is also possible after its own processing. Depending on the specific situation it is possible to use one of the following ways:

  • Direct price comparison: A new replacement commodity is selected, comparable in quality to displaced representative, and its price is used directly to form a price relative.
  • Attribution: If confusing representative is not a direct replacement of decommissioned representative, shall be assigned the current development of similar services or service groups which may be entitled to assume the same price developments.
  • Overlap: When replacing the ending is representative of the service is used is so different that it is not possible their comparison or a situation where there is not enough information to properly assess the impact of changes in quality to price, but prices are available both of Representatives after a common term (at least one month). In this case we assume that the price difference in the common period is just equal to the difference in quality. The new representative takes over the current price developments and the original representative to the price in the current period is grossed up his base period price. This method is used in the substitutions of D (indirect transition to the new representative). This method is always carefully considered and its use is only possible where there is no danger of a hidden price increases.

The data are transmitted quarterly to Eurostat. 

Reporting units provide prices of given market services until the 20th calendary day of the observed month. The data processing ends 9 calendar days after the reference month and then the publication outputs are prepared. Business to business indices are released nationally on the 16th calendar day after the reference month, at 9:00 a.m.

The same concepts are used within the whole national territory.

Price indices are consistent in time.