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Producer prices in industry

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Institute of Statistics, INSTAT

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Producer Price Index (PPI) is one of the main short-term business indicators; it is regarded as one of the important measures of the economic situation in the Country. Indices for particular economic activity measure the average change in the prices of industrial products, which are produced and sold by Albanian enterprises. Three Producer Price Indices are calculated:

  • Total Producer Price Index
  • Producer Price Index on the domestic market measure the performance of production prices of industrial products produced and sold in the domestic market
  • Producer Price Index on the non-domestic market measure the price performance (converted into domestic currency, including the exchange rate) of domestically produced industrial products and foreign-market sales. 

5 March 2025

Producer Price Index measures price differences of product at the first selling point following production. measures changes in the level of producer prices of manufactured goods that are produced in Albania and sold by producers on the domestic (Albanian) and/or non-domestic market.

The price is the net income earned by the buyer of a product delivered under the terms of the sale.

The relative price is the simplest index of the price change in percentage of a product in two given time periods, one of which constitutes the base 4 period.

Price ratio is calculated automatically whenever price is entered, adjusted or imputed. The price ratio is also automatically adjusted when the base price is adjusted. One price ratio is calculated for each product each month. It is the current price divided either by the actual base price or by an adjusted base price.

Wheihting: Arithmetically weighted averages of individual observations will form the index numbers. The index (short term- link) for a 6-digit NACE is calculated by multiplying all weights by their corresponding index numbers (price ratio) then divide by the sum of the weights.

Imputation: The imputation is done by multiolying the previus reported price by the avarege monthly price movement of the closest higher level of aggregation (6-digit or 2-digit).

Measures of Index:

The annual rate measures the price change between the current quarter and the same quarter of previous year. This measures is responsive to recent changes in price levels but can be influenced by one - off effects in either quarter.

Quarterly change measures the price changes between current quarter and previous quarter. Although current, it can be affected by seasonal effects and other effects.

 

Observation units are enterprises and their units that according to their principal activity belong to Standard Classification of Activities (CPA 2008): The sources for selecting enterprises are the Annual Survey on Industrial Production and Custom Data.

The Statistical populations for Producer Price Index are all active enterprises that according to Statistical Business Register are operating in the sections: B, C, D, and E according to the NACE rev.2. 

The Producer Price comprises all territory of Albania. 

The reference period of Producer Price Index survey is monthly but published quarterly. This report is for the reference year 2024.

The accuracy of Producer Price Index is generally considered to be high. There is methodological accuracy in regards of weights and prices and calculations according to European Regulations.

Unit of measure are:

  • Indices
  • Percentage changes quarterly
  • Percentage changes yearly.

First step is collecting information from administrative data and telephone interviews. The purpose is to bring this information to the statistic level.

This process follows:

  • Physical control of questionnaires
  • Logical control of information collected throught telephone interviews (control of logical marked of responses indicators and control of accurate values)
  • Editing process of data collected (errors and modification)
  • Non response units and the missing information need to be completed through the imputation process
  • The Laspeyres indices are used
  • Analysis of results for each domain of publication
  • Imputation is the statistical method used to fill missing information in the period for which the index should be calculated.

The data sources for Producer Price Index are:

  • Survey on producer prices
  • Annual Structural Survey
  • Custom data.

The frequency of Producer Price Index data dissemination is quarterly.

Results of Producer Price Index are published on INSTAT website 64 days after the end of the reference period (T+64 days). The reference period of these results is December 31st, 2024.

Reference period

31 December 2024

Date of publication

5 March 2025

Timeliness

 64

The Producer Price Index are compiled at national level using European definitions.

Producer Price Index statistics are provided quarterly, annually and are comparable. Time series for Producer Price Index exists from the reference year 1999. (The base period has changed: 1999=100, 2005=100 , 2010=100 , 2020=100 and now 2021=100).

The time series for the Producer Price Index are available from the reference year 2005 (2005 = 100) referring to the statistical database having a time comparability of 20 years (CC2 = Jlast-Jfirst + 1 = 20).

The time series for Domestic Producer Price Index and the Export Price Index are available from the reference year 2007, referring to statistical data having a time comparability of 18 years (CC2 = Jlast-Jfirst + 1 = 18).

The data are constantly checked to ensure their comparability over time.