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Producer prices in industry

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: National Institute of Statistics (Istat)

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The Producer Price Index measures the average price development of industrial products sold on both domestic and non-domestic markets at the initial stage of commercialization. The purpose of this index is to provide information on price dynamics over the business cycle.

It is also used in National Accounts as a deflator and for updating contracts in the private sector.

9 June 2025

List and definition of variables: the list of products comprises approximately one thousand items (PRODCOM). Prices, consisting of around twenty-three thousand price series, are collected from a list of 7129  enterprises.

Planned changes in information collected: none

Accounting conventions: data are collected for products manufactured and sold on both the domestic and non-domestic market. Reporting units are the industrial enterprises. By definition, prices are effective transaction prices surveyed on the day the orders are made (collected prices are registered at the moment of contract). The price, expressed in euros, refers to an actual transaction (excluding list prices and transfer prices); it excludes VAT and similar deductible taxes directly related to turnover, as well as all duties and taxes on invoiced goods and services; it includes subsidies received by the producer, discounts, rebates, and surcharges given to the buyer. Other sale conditions are defined by the most common contracts.

Reporting unit: Industrial enterprise.

Observation unit(s): Manufactured industrial enterprise's producer price.

The target population of potential reporting units corresponds to all enterprises of Sections B to E36 of NACE.Rev2.
The total number of enterprises is about 380.000 enterprises.

Whole national territory.

Month

The samples are designed with the cut-off method and therefore, sampling errors cannot be measured. Non-sampling errors are reduced or eliminated in the collection phase both using an electronic questionnaire that helps to debug and aiming to increase the response rate of enterprises.

Indices

PPI are a system of Laspeyres chain-linked type indices. The indices compilation is carried out through three main steps:

  •  firstly, by calculating price relatives, i.e. ratios between the surveyed price at the time (y,m) and that of the base period (the month of December of the preceding year) pointed out as (y,0) or (y-1,12)
  •  price ratios are aggregated by simple geometric mean to derive the elementary product index
  •  Laspeyres indices are compiled by grouping product indices at the class level (4-digit of the NACE Rev. 2) up to the overall index.

Adjustments for quality changes: when a price variation is due to a change in price-determining characteristics, a quality change occurs; the overlap algorithm is applied to link the old and new price.

New price quotations are introduced only when the index base is updated

Seasonal items: the most recent price collected is held constant until new prices are reported for the same season.

Method of weighting and chaining: The weights system is defined at a national level. For the higher aggregation level (from the 4-digit level upwards), the weighting coefficients are determined on the basis of (billed) domestic sales of own-produced manufacturing products according to the Survey on "Enterprises Accounting Systems" (the main annual SBS survey). For lower levels, the PRODCOM survey is used.

Seasonally adjusted indices are planned to be added to the raw indices.

Data are collected through a statistical survey. The PRODCOM annual survey and the annual Survey on Enterprises accounts are used as a frame. The survey is conducted on the basis of a sample (based on a non-probabilistic design). The sample is drawn by quotas, calculated in order to guarantee sufficient coverage in terms of turnover. The sample of products and the list of enterprises are updated every year.

Monthly

The deadline for the data transmission is 30 days after the end of the reference period.

Not applicable, only national level.

Time series are available since January 2000.