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Concepts and definitions

Classifications

The classification used in the producer price indices is the national TOL2008 version of the European Union's NACE Rev. 2 classification. The classification used at product level is the European Union's Statistical Classification of Products by Activity (CPA). In selecting the products for which prices are reported, it is also possible to use the CN classification, which enterprises use when reporting foreign trade data to the Customs.

Concepts and definitions

Base index

In the base index, the price of the calculation period is always compared with the base period. In the base index, weights are usually changed less often than yearly, for example, at intervals of five years.

Basic Price Index for Domestic Supply

The basic price index for domestic supply measures developments in the prices of goods used in Finland as they enter the market. The index includes both domestic and imported goods. The price for domestic goods is the factory price exclusive of taxes. The price for imported goods is the c.i.f. price of the imports plus customs duties. The index covers commodities classified under industry categories A to F.

Basic Price Index for Domestic Supply, Including Taxes (former Wholesale Price Index)

The basic price index for domestic supply, including taxes measures development in the purchase prices inclusive of taxes of goods used in Finland. The index includes both domestic and imported goods. The price for domestic goods is the factory price inclusive of value-added tax and other indirect taxes. The price for imported goods is the c.i.f. price plus customs duties, value-added tax and other indirect taxes. The index covers commodities classified under industry categories A to F.

Chain index

In the chain index, the comparison is always made between successive calculation periods. In the chain index, the change in two calculation periods is used to take forward the index point figure of the desired base time period. In the chain index, the weights are in principle changed in each calculation period.

At times, the chain index is also spoken about in cases where the comparison period is kept fixed in comparisons inside the year, but the comparison period and the weight structure of the index is changed whenever the year changes.

C.i.f. price

The price includes cost, insurance and freight. The seller pays the sea freight to the agreed port of destination and takes out marine insurance for the goods in the buyer’s favour.

Export Price Index

The export price index measures development in the f.o.b. prices of export goods. Foreign-currency export prices are converted to euro using the mean rate for the statistical reference month. The index covers commodities classified under industry categories A to E.

F.o.b. price

Price free on board a vessel. Value of goods at basic price inclusive of transport and delivery to a named border location and possible taxes on export goods less subsidies.

Import Price Index

The import price index measures development in the c.i.f. prices of imported goods. Foreign-currency import prices are converted to euro using the mean rate for the statistical reference month. The index covers commodities classified under industry categories A to E.

Index

An index is a ratio describing the relative change in a variable (e.g. price, volume or value) compared to a certain base period (e.g. one year). The index point figure for each point in time tells what percentage the given examined variable is of its respective value or volume at the base point in time. The mean of the index point figures for the base period is 100.

Index formula

Index formula is a mathematical function by means of which an individual key figure describing change is calculated from observation values (e.g. Fischer’s, Laspeyres' and Paasche’s index formulas).

Monthly change

Monthly change is the relative change in the index from a time period one month earlier. The change is usually expressed in percentages.

Point figure

The point figure is a change quantity used in price indices, which expresses the price, average price or index of the comparison period relative to the price, average price or index of the base period. The point figure of the base period is usually denoted by the number hundred. For example, if the point figure for a commodity at a certain point in time is 105.3, it means that the price of the commodity has risen by 5.3 per cent from the base period.

Producer price

The price received by an enterprise for its commodity or service.

Producer Price Index for Manufactured Products

The producer price index for manufactured products measures development in the producer prices of goods manufactured in Finland. The index includes both goods sold at home and exported goods. The price for domestic goods is the factory price exclusive of taxes and the price for export goods is the f.o.b. price. The index covers commodities classified under industry categories B to E.

Producer Price Index for Services

The Producer Price Index for Services describes developments in the prices of services enterprises produce for each other and for the public sector.

Weight structure

Describes what meaning each sub-index (commodity, employee group, etc.) belonging to the index has for the overall index.

Year-on-year change

Year-on-year change is the relative change of the index from the corresponding time period twelve months earlier (e.g. year-on-year change of the total index of consumer prices, i.e. inflation).