Czech Statistical Office (CZSO).

Prices Statistics Department

Czech Statistical Office

Na padesátém 81

100 82 Praha 10

Czech Republic

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.

NACE Rev. 2.

CPA 2015.

Agricultural, Construction, and Services Prices Statistics Unit publishes price indices for sections and their aggregations within the CZ-CPA Production Classification nationally.

The data for Eurostat are published for sections and their aggregations within the NACE Classification.

According to CPA Classification, following sections are covered nationally:

• Production in Section H: 49.2, 49.4, 50.4, 52.1, 52.2, 53.1, 53.2;
• Production in Section J: 58.1, 59.0, 60.0, 61.1, 61.2, 62.0, 63.1;
• Production in Section K: 65.1;
• Production in Section L: 68.2, 68.3;
• Production in Section M: 69.1, 69.2, 70.2, 71.1, 73.1, 73.2, 74.3;
• Production in Section N: 77.1, 77.3, 78.1, 78.2, 80.1, 80.2, 81.2, 82.3.

According to NACE Classification, following sections are covered for data transmitted to Eurostat:

• Activities in Section H: 49, 50, 51, 52, 53;
• Activities in Section I: 55, 56;
• Activities in Section J: 58, 59, 60, 61, 62, 63;
• Activities in Section L: 68;
• Activities in Section M: 69, 70.2, 71, 73, 74;
• Activities in Section N: 77, 78, 79, 80, 81, 82.

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.

Business to business indices published nationally data are available from 1994.

The data transmitted to Eurostat are available from 2005.

The base year (the year on which the weights are based) for data transmitted to Eurostat is 2021 and the reference year is 2021 average = 100. These data are recalculated from data released nationally with reference year 2015 average = 100.

Weighting scheme that is based on year 2021 differs for data released nationally and data for Eurostat.

Index.

Monthly in internally and quarterly in dissemination to Eurostat. 

Legal basis: Act No. 89/1995 Coll. on the state statistical service, was amended by Act No. 220/2000 Coll., Act No. 411/2000 Coll., and Act No. 230/2006 Coll.

Regulation (EU) 2019/2152 of the European Parliament and of the Council of 27 November 2019 on European business statistics, repealing 10 legal acts in the field of business statistics (EBS-Regulation).

Commission Implementing Regulation (EU) 2020/1197 of 30 July 2020 laying down technical specifications and arrangements pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics repealing 10 legal acts in the field of business statistics (General Implementing Act).

Commission Implementing Decision (EU) 2021/1003 of 18 June 2021 granting derogations to certain Member States with respect to the transmission of statistics pursuant to Regulation (EU) 2019/2152 of the European Parliament and of the Council (Derogations).

Obligation on units to provide data: Response is obligatory. Protection of individual data is guaranteed. Fines can be given.

Data sharing with international organizations: Eurostat (tables predefined by the organization). The data are not transmitted to any other international organisations.

Statistical surveys carried out by the Czech Statistical Office are governed by the State Statistical Service Act No.89/1995 Coll. This Act defines the independence of the CZSO and its rights and duties towards responding units. Protection of individual data represents an important section. All information except for individual data is freely available on the office's website.

To maintain the protection of confidential data, selected aggregation of data are published. These aggregations are verified and approved once per year from the point of view of protection.

The data for Eurostat are released according to release calendar published on the Eurostat website. National release calendar does not exist for the data transmitted to Eurostat because they are not disseminated nationally.

Release calendar - Eurostat

No external user has access to the data before its general release.

The data are transmitted quarterly to Eurostat. 

There are no commentaries of ministries and other institutions. Only Czech Statistical Office prepares the commentaries of the published data.

The data for Eurostat are not released in any national publication.

Data released nationally are published in following publications:

Monthly (electronic version only)

• “Price Indices of market services for businesses” (Czech-English version)

Yearly (electronic and paper version)

• “Statistical Yearbook of the Czech Republic” (Czech-English version)
• “Price Indices of market services for businesses” (Czech - English version)

There is an online database where the business to business indices can be seen.

Description of standard tables produced:

• Monthly, quarterly, yearly indices in the breakdown Total (Service total meaning the sum of Sections H, J, K, L, M and N), Sections, Subsections, Divisions and Groups of CPA Classification.
• Indices are published with the following bases: 2015 average =100, previous period = 100, corresponding period of the previous year = 100 and the ratio of rolling averages.
• Time series of indices on the CZSO web pages use the following bases: 2015 average =100, previous period = 100, corresponding period of the previous year = 100.

There is no microdata access.

The data for Eurostat are transmitted in format of time series.

Dissemination of documentation on methodology and sources used in preparing statistics: Description of methodology is a part of publication “Prices of market services – methodology”. This methodology relates to business to business indices released by Agricultural, Construction, and Services Prices Statistics Unit. See the methodology in annexes.

The whole process of data production is driven by internal documentation (Technical project and the Statistic Metadata System) to which all interested parties has an access.
Audit reports including all the test and analysis carried out within the audit are stored and the public parts are available on request (see also quality management).

See general documents in annexes.

The key components of the quality assurance are the following:

1. Strategic documents of the CZSO: Mission, Vision and Priorities of the CZSO, Quality commitment, Priority tasks defined for each year.
2. Irregular methodological audits represents an important tool in quality control. Audits are usually carried out by expert group comprising of internal and external experts (NA experts, representatives of universities, ministries etc.).

Assessment of the quality uses the following components:

1. Standard STS compliance assessments carried out by Eurostat. This assessment is used internally as well.
2. The methodological audit (see also Quality assurance) includes inter alia different quality analysis, e.g. benchmark analysis, response analysis, in case of leading indicators, their ability to predict the changes in the economy.
3. Regular response rate measurement.
4. Regular confrontation of estimates with later available administrative data or comparable data acquired or estimated from statistics with different periodicity.

The data user is Eurostat. Data is put together according to an assignment of the user. Requirements of Eurostat in terms of time series are fulfilled.

Not available.

Requirements of Eurostat in terms of time series are fulfilled.

Sampling error comes along with the selection of units into the sample. Selection of units is determined by yearly statistical survey „Annual report of economic entities of selected production sectors“ where theCZSO staff find out the distribution up to 6-digit CZ-CPA and address the most significant enterprises according to their sales. Sampling error may appear when enterprises are not correctly listed in CZ-CPA Classification. These enterprises are not included into the sample and the CZSO staff have to choose another significant enterprises according to their sales.

The main problems of non-sampling errors:

1. Long term non-response.
2. Exit of the respondent or termination of activity which we have surveyed. These problems can be solved by replacements of respondents. Replacements are implemented with no quality change.
3. Organisational changes in reporting units.
4. Outdated weight structure due to structural changes in economy. Editing and imputation of prices.
5. Qualitative problems of defining representatives and statistical units. In many cases prices of market services are offered in some specific package tailored for specific customer. Hence the problem of how to define a representative and statistical unit for a wider range of respondents within a specific service. However definition and use of a specific representative and statistical unit can be variable in the time.

Actions to speed up or increase the rate of response: Telephone contacts, e-mails, face-to-face contacts.

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.

Business to business indices released by Agricultural, Construction, and Services Prices Statistics Unit are always published according to release calendar.

The same concepts are used within the whole national territory.

Price indices are consistent in time.

Dissemination of information that support statistical cross-checks and provide assurance of reasonableness: None.

Confrontation with other data sets: In some services, a comparison with consumer prices.

All aggregates are consistent with their sub-aggregates.

Cost (NSI) hours per year: 6600.

Burden (respondents) hours per year: 3300.

Data revisions follow the Revision Policy of the CZSO, which represent one of the key documents of the office. It is accessible via CZSO website in both Czech and English. Calendar of standard revisions is being prepared together with the release calendar. The same revision policy is applied to STS data released nationally and transmitted to Eurostat.

Revision and the prepared methodological changes are discussed and announced in advance.

Data revision: The purpose of the revision is to update the system of price statistics creation, especially due to accumulated changes in the real described section. This update applies to sample collections of representatives and respondents, weighting scheme, price base and concept of calculation. Revision is usually carried out in five-year periods.

Revision of business to business indices: During the year 2023 a complex standard revision of business to business indices in market services had taken place. Since January 2024 was started the calculation on the structure of 2021 sales with the new price base “average 2021 = 100”. The newly calculated technical indices were chained to the index basis “2015 average = 100” in December 2023. This preserves the continuity of the existing time series.

Revision of data transmitted to Eurostat: During the year 2023a revision of data for Eurostat was carried out in the same way as the revision of business to business indices.

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.

Data are collected monthly - it is only for national purposes.

For Eurostat data are collected quarterly.

Questionnaires used in the survey: „Monthly report on the prices of market services“.

Planned changes in national questionnaires: The new services will be gradually added.

Data collection media:

• online electronic questionnaire – online reports with the use of application named Dane-WEB,
• offline electronic questionnaire – sent by e-mail in PDF format,
• telephone or e-mail contact CZSO workers is possible too.

Verification of prices: Specialists analyse the reported price changes and the reasons for price change as indicated (in code including commentary) by the reporting units. They remain in close contact with the reporting units.

Verification of processing: Price changes are, among other things, compared with the previous period and comments provided by reporting units. The influence of price changes in individual products and groups on the development of the total index is analysed.

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.

No seasonal or working day adjustment.

No additional comments.