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Service producer prices

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National Reference Metadata in Euro SDMX Metadata Structure (ESMS)

Compiling agency: Hungarian Central Statistical Office (HCSO)

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The services producer price index (SPPI) covers services delivered by the resident business service producers and sold to all customers (economic units or persons representing economic units, public bodies, households and other users) and reflect the average price development of selected service activities compared to the several base periods (e.g. year 2021=100.0). Both domestic prices of services (sold to the resident customers) and export prices of services (sold to the non-resident customers) are collected. The frequency of the electronic data collection is quarterly. The production and transmission of data (indicator 130201) is required by the current EBS regulation.

Product-based price indices of services provided for businesses (B-B) are the aggregates of enterprise-level product-based price indices of CPA 2.1 / TESZOR’15 categories (previous quarter = 100%).

Price indices of services provided for all customers (B-All) are also computed – as weighted averages of Service Producer Price Indices (SPPI, B-B) and Harmonised Indices of Consumer Prices at Constant Tax (HICT-CT).

19 June 2025

According to the current EBS regulation the service producer price index for an economic activity measures the average price development of all services, Business-to-All, which is composed of Business-to-Business- B2B, and Business-to-consumers- B2C. Sales to public sector, Business-to-Government – B2G, is also included in B2B.

Price representative of services is a service item with well delimited parameters of quality, relevant in pricing aspects, which represents considerable weight in sales, and data on which can be continuously supplied.

Pricing methods for services: all specific information based on which the unit service producer price can be determined.

The Methodological guide for developing producer price indices for services (publication of OECD and Eurostat, second edition, KS-04-14-661-EN-C) suggests using eight pricing methods:

Direct use of prices of repeated services: real transaction prices or list prices (although this latter is not proposed) are surveyed. It can be applied when services or “service packages” are actually realized in every survey period.

Contract pricing uses real transaction prices. It is applied when the same producer sells the same (or very similar) service to the same client in several survey periods.

Component pricing divides the composite service into a number of key output components, which are priced separately based on real transaction prices, then component data are combined to form the service price.

Model pricing: the price for a standardised product is estimated based on a model transaction which is not actually transacted in the comparison period.

Unit value method: the unit price is determined as the quotient of the value (sales revenue) and quantity of services sold over a large number of transactions. The method is applicable in cases when the different service types in a group of services are relatively homogeneous.

The percentage fee method estimates a price by multiplying the value of an asset tied to the service by a percentage.

The pricing based on working time surveys the amount of money charged to a buyer of a service for a standard unit (e.g. one hour) of work carried out by an employee contributing to the production (provision) of that service (which amount of money should not be mistaken for the employee’s salary.

Margin pricing method: margin prices are defined as those prices that are not directly observable but where the value of the service can be measured as the difference between the observed acquisition and selling prices of a given product. It is important to differentiate this method from pricing mechanisms that may be used by typical margin charging industries. In some cases these industries will specify the price of a service for a given delivery/provision of a product, which may also be invoiced as a percentage of the value of the underlying product. In these cases the appropriate methods are those that relate real transaction prices or percentage fees. There are however similarities in practice between the percentage fee and margin pricing methods.

Price data are collected quarterly via internet by the questionnaire: No 2130 on business services producer prices.

The sub-indices for large and smaller enterprises are computed using product-type annual sales data for the year preceding the reference year as weights, covered by the SPPI survey. The national weights for the 4-digit level of NACE Rev. 2 are annual SBS sales data from the second year prior to the reference year.

As regards the definitions of variables used in practice of the HCSO the Commission Implementing Regulation 2020/1197 is the standard source.

Reporting unit: Enterprise; Observation unit: KAU (we only observe the service activities from the activities performed by the enterprises in the sample).

The frame of the survey is Business Register.

Sample size: 3000 enterprises were selected. Full coverage for large enterprises (cut-off according to the annual sales and/or the number of persons employed).
Representative sample for smaller enterprises.

Territory of Hungary. The whole national territory is covered and the activities performed outside the national territory is not considered in this variable.

Quarter

Sampling error and non-sampling error are not relevant in scope of SPPI’s. We are out to reach better response rate in every quarter.

In the reference period a missing price is estimated by the previous period’s data of enterprises (regarding contracts) in certain cases or by using the average price development of similar products/enterprises. To impute missing weighting data the annual SBS sales data from the second year prior to the reference year are used. Administrative sources are also applied.

Indices percentage changes (%)

Method for index calculation (B-B):

  1. Elementary price indices (price relatives)
  2. Individual price index for each company (unweighted geometrical average and/or weighted arithmetical average, product-based)
  3. Sub-index for big companies (full coverage, weighted arithmetical average, product-based)
  4. Sub-index for small companies (representative sample, unweighted geometrical average, product-based)
  5. Compiling indices for the products (CPA’08 4-digit level indices, weighted arithmetical average with rate of the turnover of big and small companies). For aggregation indices of big companies we apply product-based turnover data 1 year prior to the actual year collected by the SPPI survey.
  6. The CPA’08 4-digit level nationwide coverage weights are SBS turnover data from 2 years prior to the actual year. The indices are chain linked with annually up-dated weights.

Price indices of services provided for all customers (B-All) are also computed – as weighted averages of Service Producer Price Indices (SPPI, B-B) and Harmonised Indices of Consumer Prices at Constant Tax (HICT-CT).

The indicator of SPPI’s is derived from statistical survey using questionnaires. “Blanket” or class-specific questionnaires are used to collect unit prices, and 4- and 6-digit-level sales data of services sold on domestic and external market by enterprises. Unit prices are sales prices according to the invoice, rather than list prices. Taxes are excluded but discounts, rebates and surcharges have to be taken into account. Sample size: 2000 enterprises were selected with full coverage for large enterprises (according to annual sales or the number of employed persons) and representative sample for smaller enterprises. Data from other statistical domains: weighting data are taken from Structural Business Statistics (SBS) surveys (annual performance indicators of enterprises). Administrative data sources: for imputation and validation of data administrative source (tax data) is also used.

Quarterly

3 months after the end of the reference period – according to the EBS Regulation.

Over the data collection and calculation domestic and non-domestic markets are interpreted according to territory of Hungary. The whole country is treated in a uniform manner in statistical point of view. The same statistical concepts can be applied all of the territory. All data sources coverage fully the regions.

There are no difficulties concerning the geographical comparability.

There is no break in SPPI’s time series, which are relatively short; the data are available from the 1st quarter of 2007. The change of classification systems applied (NACE and CPA) has been successful. The national rebasing of the individual STS indicators including SPPIs was realized according to the Eurostat’s requirements.