Statistics Denmark

Prices and Consumption, Economic Statistics

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The total producer and import price index for commodities contains price information on:

1. Imported commodities
2. Commodities produced for domestic markets
3. Commodities produced for export

The Producer price index for commodities indicates trends in prices relating to the first commercial transaction. The calculation is based on number 2 and 3. A range of sub-indices show distributions by Industry.

Import price index for commodities indicates trends in prices relating to the first commercial transaction. The calculation is based on number 1. A range of sub-indices show distributions by Industry.

The Price index for domestic supply indicates trends in the prices relating to the first commercial transaction. The calculation is based on number 1 and 2. A range of sub-indices show distribution by commodity.

Producer price

The prices used for the index are actual prices, which means that the prices must include all possible discounts. Therefore list prices do not apply unless the prices never include discounts. A distinction is made between the prices of imported commodities and the prices of commodities for the domestic market.

Imported commodities

Actual transaction prices (in some cases transfer prices) c.i.f. excluding all duties and taxes on the goods as far as possible on the 15th of the month.

Danish commodities for the domestic marked

Actual transaction price (in some cases transfer prices) ex producer excluding VAT and excise duties as far as possible on the 15th of the month.

The Producer Price index for commodities, Import Price index for commodities and Price index for domestic supply are divided by industry and commodities.

The producer- and import price index for commodities is divided by Industry following Danish Industrial Classifications 2007 (DB07). DB07 is based on NACE rev. 2.

The Price index for domestic supply is divided by commodities following the Combined Nomenclature (CN) and The Harmonized Commodity Description and Coding System (HS). HS is the international tariff classification and developed by the World Customs Organization (WCO).

HS is a 6-digit hierarchically structured commodity classification. CN is the EU classification of tariffs and foreign trade statistics. CN is a subdivision of HS. The prices collected for the producer- and import price index are collected according to this commodity classification.

The statistic is subject to the European regulation for short-term statistics. In concordance with the regulation the statistic is comprised of all imported and domestic produced commodities belonging to the industries B to E in the DB07 nomenclature. Additionally, prices are also gathered belonging to industry A for The Price index for domestic supply.

• A: Agriculture, forestry and fishing
• B: Mining and quarrying
• C: Manufacturing
• D: Electricity, gas, steam and air conditioning supply
• E: Water supply; sewerage, waste management and remediation activities

The Producer- and import price index for commodities is comprised of industry B to E.

The Price index for domestic supply is comprised of industry A to C.

Domestic price: The price of domestically produced goods and services, sold to the domestic market.

Export price: The price of domestically produced goods and services, sold to export.

Import price: The price of imported goods and services.

Real transaction price: The price of a good or service actually paid in the market. It represents the actual price paid, inclusive of any discounts, surcharges or rebates, for an individual transaction that can be observed repeatedly

Transfer pricing: The process whereby companies price intra-group transactions to ensure that they are traded on market-like terms. This is done in practice by pricing the transactions so that each part of the group's value chain receives a profit that is within the limits set by the authorities.

The statistical units in the producer and import price index for commodities are companies, where each company is determined by the legal entity. In Statistics Denmark's Statistical Business Register, the legal entities are determined by their VAT number. In some cases, the principle is abandoned. Several companies can be combined into one unit, e.g. if they have centralized administration or in the case of franchises.

The population covers all commodities that are imported or produced in Denmark for the domestic market for the various industries and commodity groups.

Denmark.

The Producer price index for commodities has been published since January 2000. Import price index for commodities has been published since 2005. The Price index for domestic supply has been published since 1981.

2015=100

Index.

The firms are to report the prices, which were in force on the 15th of the month in so far it is possible.

At the national level legal authority to collect data is provided by the Act on Statistics Denmark, section 8, as subsequently amended (most recently by Act no. 610 of may 30th, 2018).

Council Regulation (EC) No 1165/98 of 19 May 1998 concerning short-term statistics (EFT L 162 05.06.98).

At the European level the legal authority is provided by the (EBS) Regulation (EU) 2019/2152 on 27 November 2019 and the Commission implementing Regulation 2020/1197. 

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)(1). According to the EBS Regulation (Article 17) Member States shall transmit annually quality and metadata reports for the data transmitted. Data are transmitted to Eurostat

Data Confidentiality Policy for Statistics Denmark.

Confidential data are treated by suppression. In practice this means that there will not be published any figures where individual companies can be identified, unless the figures are already publicly available. The Statute of Statistics Denmark and a letter explaining terms and conditions, including the confidentiality of individual responses, are sent out to all enterprises participating in the survey.

The publication date appears in the release calendar. The date is confirmed in the weeks before.

The Release Calender can be accessed on our English website: Release Calender.

Statistics are always published at 8:00 a.m. at the day announced in the release calendar. No one outside of Statistics Denmark can access the statistics before they are published.

Monthly.

These statistics are published monthly in a Danish press release.

These statistics feature in the Eurostat Statistical Book on European Price Statistcs - An overview. These statistics also featured in the Statistical Yearbook until 2017.

These statistics are published in the Statbank under Producer and Import Price Index for Commodities in the following tables:

Producer price index for commodities

• PRIS4015: Producer price index for commodities (2015=100) by Industry (groups), market and unit
• PRIS4215: Producer price index for commodities (2015=100) by industry standard industrial groupings and unit

Import price index for commodities

• PRIS4115: Import price index for commodities (2015=100) by Industry (groups) and unit

Price index for domestic supply

• PRIS1115: Price index for Domestic Supply (2015=100) by commodity group and unit
• PRIS4615: Import price index for commodities (2015=100) by Industry (groups) and unit

Producer and import price index for commodities

• PRIS4315: Producer and import price index for commodities (2015=100) by Industry (groups), market and unit

Researchers and other analytics from authorized research institutes, may apply for access to the statistics micro-data with Danish Statistics' research program Data for research. Only Danish research environments are granted authorization. Foreign researchers can, however, get access to micro-data through an affiliation to a Danish authorized environment. . A similar research program is available for Danish state departments, agencies and directorates.

Micro-data available in the form of price information are; electronic reports back to the year 2010. In addition, micro-data at the level of elementary aggregates are available back to the year 1993 for the Producer and Import Price Index.

In addition, micro-data at the level of elementary aggregates are available back to the year 1993 for the Producer and Import Price Index.

The statistic is available in Eurostat's database.

These statistics follows the principle in the Handbook on industrial producer price indices (PPI) from 2012 and the Producer Price Index Manual: Theory and Practice from 2004.

Results from the quality evaluation of products and selected processes are available in detail for each statistics and in summary reports for the Working Group on Quality.

Statistics Denmark follows the principles in the Code of Practice for European Statistics (CoP) and uses the Quality Assurance Framework of the European Statistical System (QAF) for the implementation of the principles. This involves continuous decentralized and central control of products and processes based on documentation following international standards. The central quality assurance function reports to the Working Group on Quality. Reports include suggestions for improvement that are assessed, decided and subsequently implemented.

Overall the indices of the Producer- and Import Price Index of Services is assessed to be of high quality and representative of the price development in the population, i.e. the price development of goods sold by Danish producers and of goods bought by Danish importers. This assessment relies on the data used for the index, which consists of 6800 prices distributed on approximately 1100 commodity codes which covers at least 70 pct. of the total revenue in the population. This together with the weights encompasses the main part of all Danish trade as well as the continuously monitoring of the quality of the sample.

There are large differences between the commodity- and industry groups that the Producer and Import Price Index for commodities covers. There is great variation in the number of companies from group to group. In some groups it is possible to cover a large amount of turnover with a small sample, whereas in others, it is difficult to cover a small amount of turnover even with a large sample. Hence it is not possible to determine a common quality benchmark across all groups, and the quality will vary more for more disaggregate indices.

A comprehensive quality assessment is therefore based on a combination of assessing turnover coverage, the number of companies and prices in the sample and the quality of the collected prices, including the pricing methods used. The quality of the statistic is being continually monitored and improvements are made where it is assessed that the quality can be levered. Conducting quality work therefore includes making replacements within- and increasing the sample with more respondents. Asking existing respondents to report more prices, or use better pricing methods to define and calculate prices.

Furthermore, the quality of this statistic can be assessed by to what extent the statistic is relevant, accurate and reliable, timely and punctual, comparable and accessible to the users. You can read how the index lives up to these goals in the sections with the corresponding headlines.

The Producer- and Import price index for commodities is a key business cycle indicator which is used by public and private decision-makers to analyze the socioeconomic development.

Deflator The index is used to adjust other economic time series for price changes:

• Fixed price calculations in the national accounts statistics, i.e. calculation of the actual economic development in Denmark.
• Fixed price calculations in the industry statistics.

Contract adjustment The index is also used by businesses to adjust contracts.

The primary user of this statistic is the Danish National Accounts. For this reason, the statistics main objective to act as a deflator for fixed price calculations. This has implications with regards to the choice of the sample, as the ambition is to cover as much industry turnover as possible, rather than reflect typical price developments. There is an ongoing dialogue with national accounts, in terms of quality and user satisfaction.

There are also external decision makers who use the statistic for contractual regulations, as well as to monitor price developments in the published indices. Statistics Denmark is on a regular basis in contact with these users, and attempt to meet any requests to the extent which it is possible.

Periodically Statistics Denmark holds a committee meeting with users of price indices. The Meetings are held in cooperation with The Consumer Price Index as well as the statistics for Purchasing Power Parities and Price Level Indices. Members of the committee are; the Ministry of Finance, the Ministry of Economic Affairs and the Interior, The Danish National Bank and the Danish Competition and Consumer Authority. Membership may be changed as needed.

The statistic is covered by requirements from the EU in terms of industry coverage, level of detail, frequency and release times. Statistics Denmark meets all these requirements. Some indices are not included in the population because the goods are of a special nature or because turnover is too low. Other sub-indices are included in the sample, but not published due to confidentiality reasons.

Prices are collected for approximately 1100 groups of commodities covered by approximately 6800 price series. The samples for each commodity group are selected top-down to achieve as high turnover coverage as possible. Within each of these commodity groups the largest companies, measured on turnover, are selected. Each of those companies are asked to report the prices of their most representative commodities based upon revenue or the amount sold/import within the given commodity group. Therefore, it is assumed that the price developments in the samples expresses the price developments in the whole population.

The weight are based on the National accounts balances for 2018, which is based on multiple in-house primary sources (Purchases and sales by enterprises, Production and turnover in manufacturing industries. Retail Trade and International Trade etc.). This covers most of all the trade in Denmark and it is assessed to been representative of the Danish economy.

The samples for each commodity group are selected top-down to achieve as high turnover coverage as possible. The samples are thus not based on the probability of sampling selection corresponding to the importance of each commodity. To match the turnover balances in the National Accounts, prices are strictly collected from companies within the specific six-digit commodity groups. The sample is therefore not a random sample and it is not possible to estimate the overall size of the sampling error.

During the COVID-19 pandemic in Denmark, the non-response rate has roughly been unchanged compared with previous periods before the pandemic. Therefore the index is not considered to have an increased uncertainty due to COVID-19.

The weights, which are based on the supply and use tables from national accounts for the year 2018, are equal to the sum of the import- and production values for the home marked. The current weights were implemented by the publication of the index for January 2022. There is this a constant lag in the weights used of at least four years.

As time passes, the commodities in the sample gets replaced. Because the new commodities often have different quality than the commodities that they replace, there is continuous quality adjustment of the index. When replacing commodities, new commodities are not included in the index before their prices are observed in two subsequent periods. A bias can arise in cases where price changes coincide with changes in quality. Methods for dealing with quality changes are described in IMF's guide for Producer Price Index for Commodities (Producer Price Index Manual - Theory and Practice).

There might be a tendency towards keeping commodities that are out of fashion too long in the sample, and new commodities are implemented too late. The enterprises are regularly asked to update the basked of goods.

Errors may occur when an enterprise report prices for other commodities than expected. The reason for this is normally misunderstandings e.g. change in staff. Furthermore, errors may occur when questionnaires are recorded in Statistics Denmark. Our error checking procedures normally spot such errors. Recording errors are not regarded to be important.

The price index is calculated as a fixed basket of goods index of the Laspeyres type. This means that in the calculation of the index it is assumed to have an fixed basket of goods through time. In reality substitution between commodities happen due to one reason or another (change in relative prices, preferences or technology). Resulting in the calculated price development in the index not necessarily reflecting the precise reality perceived by the companies in the real world, because they substitute away from goods with relative price increases. This is sought to be minimized by updating the sample every 5th year. Furthermore, the companies are continuously and systematically asked to review the portfolio of commodities they report prices on and asses their representativeness of the company’s activity.

The monthly non-response is less than 1 percent and is not considered a significant source of error. If there is non-response for significant commodities the prices are imputed, otherwise the prices are considered unchanged.

Index calculations are automatized and done in a dedicated Price index calculation system. Therefore it is assessed that the possibility of processing errors are insignificant.

The statistics are published every month. For a specific month it will be published on the 15th of the following month or the first business day thereafter.

The statistics are usually published without delay in relation to the scheduled date.

All EU member states are required to produce The Producer and Import Price Index under the guidelines of the Council Regulation (EC) no. 1165/98 concerning short-term statistics. The statistics can be compared internationally on the webpage of Eurostat. Also, outside the European community, The Producer and Import Price Indices are produced.

These statistics have been produced in its current form since 2000, but changes in the year of comparison, the base year and the industry classification have occurred during that period.

• From 2005 to 2008, 2000=100, weight year is 2000 and industry classification is DB03
• From 2009 to 2013, 2005=100, weight year is 2005 and industry classification is DB07
• From 2014 to 2018, 2010=100, weight year is 2010 and industry classification is DB07
• In 2019, 2005=100, weight year is 2015 and industry classification is DB07
• In 2020, 2015=100, weight year is 2016 and industry classification is DB07
• In 2021, 2015=100, weight year is 2017 and industry classification is DB07
• In 2022, 2015=100, weight year is 2018 and industry classification is DB07

To enable comparisons with earlier periods it is, in principle, possible to interlink old and new indices by comparing indices with new and old year of comparison for the same period

When comparing indices over a longer period of time it is important to note that weight changes and the continuous update to the sample interferes with the assumption of a fixed basket of goods, central to price index theory. Though these measures are taken to ensure the index better reflect the current turnover in the Danish economy.

The Price index for domestic supply have been produced in its current form as a monthly index since 1981, but have changed base and weight reference year during the period.

The Price index for domestic supply is also published as a yearly index in the StatBank, PRIS1900. Statistics Denmark have produced different version of the index since 1876, and first published the index in Statistisk årbog fra 1913 (tabel 61). The index has had different names through the years but became the Price index for domestic supply in 2003. The yearly index published in the StatBank is an index compiled from a series of indices from 1876 and up to today, and these indices have had different methodological changes through the years, which is something to note when using the index.

The Price index for domestic supply has had a number of changes from its inception until now. Immediately below is a structured overview of the changes to base year, weight reference year and commodity groupings: -Period: 1925-1934. Base year: 1913=100. Weight year: 1924. Commodity grouping: 11 Groups. -Period: 1935-1937. Base year: 1931=100. Weight year: 1934. Commodity grouping: 11 Groups. -Period: 1938-1956. Base year: 1935=100. Weight year: 1935. Commodity grouping: 11 Groups. -Period: 1957-1971. Base year: 1955=100. Weight year: 1954. Commodity grouping: SITC. -Period: 1971-1981. Base year: 1968=100. Weight year: 1966. Commodity grouping: BTN. -Period: 1982-1984. Base year: 1975=100. Weight year: 1975. Commodity grouping: CCCN. -Period: 1985-1993. Base year: 1980=100. Weight year: 1980. Commodity grouping: CCCN. -Period: 1994-2002. Base year: 1990=100. Weight year: 1990. Commodity grouping: HS. -Period: 2003-2004. Base year: 2000=100. Weight year: 1998. Commodity grouping: HS. -Period: 2005-2008. Base year: 2000=100. Weight year: 2000. Commodity grouping: HS. -Period: 2009-2013. Base year: 2005=100. Weight year: 2005. Commodity grouping: HS. -Period: 2014-2018. Base year: 2010=100. Weight year: 2010. Commodity grouping: HS. -Period: 2019. Base year: 2015=100. Weight year: 2015. Commodity grouping: HS. -Period: 2020. Base year: 2015=100. Weight year: 2016. Commodity grouping: HS. -Period: 2021. Base year: 2015=100. Weight year: 2017. Commodity grouping: HS. -Period: 2022. Base year: 2015=100. Weight year: 2018. Commodity grouping: HS.

The index was originally calculated on the base of the utilized prices for 38 significant commodities in the valuation calculations in the trade statistic, and further added weight after significance. Through the years the sample have been expanded upon and different methodologies, price definitions etc. have been introduced. Immediately below is an overview of these changes, but if you want to know more you can find a more detailed overview in a document on our subject page in the near future.

Overview of changes through the years: -1913: The index was published for the first time in Statistisk årbog 1913 for the years 1876, 1881, 1886, 1900, 1901, 1905, 1906, 1907, 1908, 1909, 1910, 1911 and 1912. -1914: The total index series from 1876-1913 is published for the first time in the Statistisk årbog 1914. As base year for the index the average of 1891-1900 is set to 100. -1925: The department of Statistics reorganizes the statistic from a yearly to a monthly index. -1936: Increased price information and new groupings. -1957: The statistic changes name from The wholesale price number to The wholesale Price index, roughly translated from Danish. An English version of the index was not published at the time. -1963: The price definition changes from whole sale prices to producer prices. -1982: The raw material price index is included independently in the import table. -1985: New price information and weights. Price reference and base year are changed to 1980=100. -1994: The weights and price information are revised. Base year is changed to 1990=100 and the utilized nomenclature is changed to HS (Harmonized System). -2001: The data of price collection is change from the 25th to the 15th in the given month. -2003: The calculation methodology changes from a simple arithmetic average to a geometric average and the price definition is changed to transaction prices. The index changes name to The price index for domestic supply. -2004: The price definition for import prices is changed from sales price to purchase price. -2013: The overall statistic has a name change to The Producer- and Import price index for commodities. The price index for domestic supply continues to be produced under this new overall name for the statistic. The raw material price index is discontinued.

A lot of these cases constitute a structural break in the data. Furthermore, there a changes to nomenclatures, weights, the basket of goods, groupings, and collection methods. It is important to note all of these when utilizing the yearly Price index for domestic supply that is compiled by historical indices.

The collected price data is used in compiling price indices for:

1. Producer price index for commodities by Industry and market
2. Producer price index for commodities by Industry standard industrial groupings
3. Import price index for commodities by Industry
4. Price index for Domestic Supply by commodity group

The Producer Price Index for Commodities is also related to the Producer price Index for Services. That is similarly used for fixed price calculations in the Danish National Accounts.

Price indices by industry groups and commodity group are calculated on the basis of the same data.

The calculation of the price index is based on the price change for the individual product in the sample. Therefore the composition of products in a commodity group can have different quantities and units of quantity. For example if the price for a 500 gram steel bolt is increased by 4 pct. and a 1 kg steel bolt is increased by 6 pct. the average price change is calculated to 5 ct. for the commodity, steel bolts.

The response burden is estimated at 1,148 DKK million.

Statistics Denmark revises published figures in accordance with the Revision Policy for Statistics Denmark. The common procedures and principles of the Revision Policy are for some statistics supplemented by a specific revision practice. The same revision policy is applied nationally and in transmission to Eurostat.

Only final figures are published.

The Producer- and import price index for commodities is calculated on the basis of about 6800 prices, reported by selected producers and importers in Denmark. Of these, about 3600 prices are used for calculating the producer price index, about 3200 prices are used for calculating the import price index and about 5200 prices are used for calculating the price index for domestic supply.

The weights are based on national accounts estimates of Danish companies' turnover values.

Monthly.

Prices are collected through an electronic reporting form, which is sent out to selected companies.

The first validation of price data happens when prices arrive to Statistics Denmark. Here they are auto tested for unusual developments. The prices that do not pass a predetermined threshold value will be checked manually by the staff and accepted only if the firms can verify the change. When all prices are received, the system generates a list that includes all price changes and a measure of how these affects the elementary aggregates. The last validation is a visual inspection of all index tables.

The Producer and import price indices are calculated in a hierarchical system where the first calculation is made for the most detailed group of commodities, i.e. the elementary aggregates. These indices are calculated as geometric Jevons indices. The detailed elementary aggregates are subsequently weighted together for sub-indices and in the end for the total producer and import price indices. These are calculated as arithmetic Laspeyres indices. It is calculated as a Laspeyres type index where the price and weight reference period does not coincide.

Weights: Weights are assigned to every detailed group of commodities and used for weighting the base indices together for sub-indicies and for the total Price index for domestic supply. The weights, which are based on the supply and use tables from national accounts for 2018, are equal to the sum of the import values and production values for the home market excluding VAT and excise duties. This ensures that the sample reflects the population.

Estimates for non-response: Non-response is negligible. If it should happen for any significant goods, imputation techniques are used. In other cases the prices are regarded as unchanged.

There are no corrections of data beyond what has already been described during data validation and data processing.

For more information please contact Statistics Denmark at Producer- and Import price index for commodities.