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Service producer prices

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Agency for Statistics of Bosnia and Herzegovina (BHAS)

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Service producer price index (SPPI) provide measures of the average movements of prices, valued at basic prices received by domestic service producers. SPPIs are therefore a subset of output producer price indices (PPIs). Each individual industry-specific index describes the average movements of prices in that industry. The data are published in the form of quarterly series of base and chain SPPI indices.  SPPI indices are presented in a gross, unadjusted form, they are not adjusted for seasonal influences and calendar days.

23 August 2024

Services Producer Price Index (SPPI) is defined as an output price index for the service production of resident enterprises. That means that SPPI measures the changes in producer prices for services performed by resident enterprises in BiH. Service producer prices represent the invoiced price for services provided by the service providers, to the users of these services, i.e. enterprises or physical persons.  The appropriate price measure is the transaction price reflecting the revenue received by the service provider for services actually sold to customers. They should take into account any applicable discounts, rebates, surcharges, etc. that may apply to the customers. Because the price reflects revenue received by the service provider taxes on services should be excluded from prices whereas subsidies on products received by the producer, if there are any, should be added. Producer (output) prices are monitored from the point of view of service providers as opposed to consumer prices that are monitored from the point of view of end users.

Based on the quarterly survey of producer prices of services in BiH, the quarterly price index is calculated on the basis of collected representative prices, relating to the commercial service for the domestic or foreign market (export), exclusive of VAT. Imported services are not in the scope of quarterly survey of SPPI. Survey methodology is completely harmonized with the one prescribed by new Regulation (EU) 2019/2152 of the European Parliament and of the Council  on European business statistics and Implementing Act no. 2020/1197 (hereinafter EBS regulations) as well as with the Methodological Guide for Developing Producer Price Indices for Services (OECD, Eurostat, 2014, Second Edition).

Reporting units are enterprises and KAUs that are according to the main activity in the Statistical Business Register registered within respective service activities that are listed in 3.6, as well as a minor extent business entities/legal units which are classified according to the main activity in other activities but also perform one of the listed service activities (KAUs). KAUs are included in the sample in case when there are not enough business entities registered in the selected main activity or when KAU is important for that SPPI activity. Selection of statistical units was done by using top-down method by realized turnover within each service industry. The breakdown of services is based on Classification of Products by activities BiH 2016 (KPPD BiH 2016) which is fully harmonized with all 6-digit levels of CPA 2.1. To keep the Index up-to-date in the long term, the population of the reporting units (enterprises and KAUs) included in the sample is reviewed annually. The selected sample is representative at the level of Bosnia and Herzegovina, as well as at the levels of the Federation of BiH, Republika Srpska and the Brčko District of BiH. Entrepreneurs are not included.

Statistical population are business entities /legal units which are, by the main activity in the Statistical Business Register registered  within following service activities:

-   Section H of NACE Nace Rev.2:

  • 49.41  Road freight transport;
  • 52.10 Warehousing and storage;
  • 53.10 Postal activities under universal service obligation;
  • 53.20 Other postal and courier activities.

-   Section J of Nace Rev.2:

  • 61 Telecommunications;

-   Activities in Section M of Nace Rev.2:

  • 71.1 Architectural and engineering activities and related technical consultancy;

-   Section N Nace Rev.2:

  • 80    Security and investigation activities;
  • 81.2 Cleaning activities.

Entrepreneurs are not included in the SPPI survey.

The SPPI survey covers business entities/legal units on the whole territory of Bosnia and Herzegovina.

Reference period is a calendar quarter.

Quarterly service producer prices data are obtained by using the reporting method, using the separate paper questionnaires (K KPS: SPPI CEST, SPPI SKL, SPPI UP, SPPI KURIR, SPPI ARHI/INŽ, SPPI ZAŠT and SPPI ČIŠĆ) and represent the basis for the calculation of a respective SPPI. Considering a very high response rate for STI (approximately 98.0%) the overall accuracy is very good. The data must be filled in before compiling the data for all reporting units in the sample (reporting units are called or visited, if it is not possible to get the data after that, imputation is performed). Every quarter the revised data of previous quarter, if any, are published.

Data are published as base and chain indices (in %).

The SPPI in BiH is calculated in a hierarchical system, where the collected prices are initially divided into CPA-groups which are the most detailed groups of services. The CPA-groups are then aggregated into so-called elementary aggregates for which basic prices are calculated as geometric Jevons Indices. Elementary indices are calculated on the basis of basic prices between two or more periods. The developments of the basic prices are therefore equal to the total price change for a given industry. The elementary indices are subsequently weighted together as aggregated price indices. The Laspeyres’ formula is applied for the calculation. Weights are turnover shares of a one service group in a total turnover of every single enterprise included in the respective service group. This leads to the calculation of a total activity index as a weighted price index average of all service groups. Chain index consists of a series of subsequent indices each of which is linked with its predecessor. Linking includes multiplication of values of each subsequent index by value of its predecessor in an overlapping period so that the base period of a successor is the same as predecessors. In line with the EU Regulation No. 2020/1197, the use of the base (2021) year from January 2024 in EU member states is prescribed. 

Quarterly SPPI survey is main data source, and data are collected directly from reporting units by using statistical questionnaires (K KPS: SPPI CEST, SPPI SKL, SPPI UP, SPPI KURIR, SPPI ARHI/INŽ, SPPI ZAŠT and SPPI ČIŠĆ). Data collection on SPPI survey is carried out by using paper questionnaires (ordinary mail) and e-mail. The source of data for filling in the data on annual turnover and prices in SPPI questionnaire is sales manager/ CEO of enterprise or other relevant documentation of the enterprise. The main observed variables are the value of realized turnover of business entity in previous year, excluding VAT and representative prices for previous and reporting quarter of the business entity registered in the respective service activity.

The Services producer price index (SPPI) for BiH is disseminated on a quarterly basis.

Data collection for SPPI is done on quarterly basis. Reporting units have 30 days (t+30) after the reference quarter for submitting data. Eventually, few more days are available for re-calling of reporting units, which did not delivered the report in order to get the data for all reporting units. Data for the BiH level are published in average 55 days after the end of the reference quarter (t+55). First results shall become final on the date of publication of the press release for the next quarter.

Considering that methodology of the SPPI survey is harmonised with the EU Regulation 2019/2152 on European business statistics and Commission Implementing Regulation 2020/1197 as well as with Eurostat's recommendations for this statistical area, the data are comparable with those of EU member states.

The data series for Road freight transport, Warehousing and storage, Postal activities under universal service obligation, Other postal and courier activities and Telecommunications data on SPPI have been available since first quarter of 2015. For Cleaning activities and Security and investigation activities data on SPPI have been available since first quarter of 2017 and for Architectural and engineering activities and related technical consultancy data on SPPI have been available since from first quarter of 2018. Starting from Q1 2024, respective SPPI series calculated on the base year 2015 (2015 = 100) have been recalculated to the new base year (2021=100), in order to ensure comparability over time.