Eurostat-OECD Methodological Guide for Developing Producer Price Indices for Services

Second Edition

image of Eurostat-OECD Methodological Guide for Developing Producer Price Indices for Services

The International Producer Price Index Manual, Theory and Practice (PPI Manual) published by the IMF in 2004 consituted a landmark for international standards on price measurement and contains detailed, comprehensive information for the compilation of producer price indices as well as an extensive coverage of the conceptual and theoretical issues. This second edition of the Methodological Guide for Developing Producer Price Indices for Services (SPPI Guide) is a complement to the PPI Manual in two ways: it focuses on service-specific aspects in the PPI compilation by developing further the conceptual framework and it adds detailed descriptions of PPI measurement for a wide range of individual service industries.

This second edition of the SPPI Guide has been jointly produced by the OECD, Eurostat, the members of a task Force with deleguates from 14 OECD/EU members countries (Australia, Austria, Canada, France, Germany, Hungary, Israel, Japan, Korea, Mexico, Netherlands, Poland, the United Kingdom and the United States)and in synergy with the Voorburg Group. Several countries contributed to the Guide by providing descriptions of service PPIs for individual industries, other countries were represented by national experts in at least one meeting of the Task Force.



Producer Price Indices for Services

In OECD countries, services account for the largest share of GDP. However, statistics on services are still partially underdeveloped when compared to statistics on goods producing industries.1 This is particularly true for producer price indices where price indices for goods by far outnumber available price indices for services. There are several reasons for this asymmetric coverage of price indices. One is simply that goods historically played a more important role than services and this has shaped statistical systems. Another reason is that developing service price indices is a difficult and expensive task. Service output may be hard to identify on purely theoretical grounds, and even more difficult to measure reliably. For example, services may be unique and have to be treated like new products (e.g. various consultancy services) or they can be tailored or bundled in different ways for different users. All this implies complexity and high costs for price measurement.


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