Producer price indices for services: documentation of statistics

The producer price Index for services covers the following sections of the CPA 2015 product classification:

• H Transportation and storage services
• I Accomodation and food services
• J Information and communication services
• L Real estate services
• M Professional, scientific and technical services
• N Administrative and support services
• P Education services
• Q Human health and social work services
• R Arts, entertainment and recreation services
• S Other services

Some of the indices are also published at 2-digit, 3-digit or 4-digit levels.

Statistical unit is KAU, i.e. kind-of-activity unit.

The population of the producer price indices for services includes all enterprises operating in Finland that provide services belonging to the main sections H-S (excl. K and O) of CPA 2015 classification.

The producer price indices for services are compiled on product basis, so the main industry of the enterprises producing products and services is irrelevant. If a service enterprise also produces goods, its goods production is excluded from the scope of the description of the producer price indices for services. On the other hand, an enterprise that mainly produces industrial goods may also produce other services than industrial services, in which case for these services, the enterprise belongs to the scope of the description of the producer price indices for services.

The geographical reference area is the whole country.

Time series for the new indices 2021=100 are for the most part available starting from the index data for January 2015. The series for old indices 2015=100, 2010=100 and 2005=100 are produced for the time being. Monthly index point figures on the producer price indices for services are also available starting from January 2017.

The base period of the producer price index for services is year 2021 (2021=100).

The producer price indices for services are published as index point figures. In addition, percentage changes based on the index figures are published.

The reference period in the producer price indices for services is quarter. In some cases, the collected prices may refer to the first, second or third month of the quarter. Monthly index point figures are also published at the same time with the quarterly published indices. The indices are published on the 24th day of the month following the statistical reference quarter or on the first working day following it. 

Starting from the base year of 2015=100, producer price indices for services uses European Classification of Products by Activitiy (CPA Ver. 2.1). The classification can be found from the Statistics Finland website. 

Indices with older base years (2010=100 and 2005=100) use Finnish national version of European NACE Rev. 2 industrial classification (TOL 2008).

The compilation of statistics is guided by the Statistics Act. The Statistics Act contains provisions on collection of data, processing of data and the obligation to provide data. Besides the Statistics Act, the General Data Protection Regulation, the Data Protection Act and the Act on the Openness of Government Activities are applied to processing of data when producing statistics.

Statistics Finland compiles statistics in line with the EU’s regulations applicable to statistics, which steer the statistical agencies of all EU Member States.

Further information: Statistical legislation

The compilation of statistics is guided by the Statistics Act. The Statistics Act contains provisions on collection of data, processing of data and the obligation to provide data. Besides the Statistics Act, the Data Protection Act and the Act on the Openness of Government Activities are applied to processing of data when producing statistics.

Statistics Finland compiles statistics in line with the EU’s regulations applicable to statistics, which steer the statistical agencies of all EU Member States.

Producer price indices for services comply with the following regulations:

• Regulation (EU) 2019/2152 of the European Parliament and of the Council on European business statistics
• Commission Implementing Regulation (EU) 2020/1197

Further information: Statistical legislation

The published producer price indices for services are delivered to Eurostat quarterly. Eurostat publishes indices on their website.

The response burden was last measured in autumn 2018. In the monthly data collection of producer price indices for manufactured products and services, the median for the response time is 15 minutes per response round per respondent. The average sample size per collection is 950 respondents and around 11,400 responses are given annually.

The producer price indices for services are based on a sample. The data used in the calculation of the indices are collected with a separate data collection from the enterprises included in the sample. The sampling frame for the producer price indices for services is Statistics Finland's Business register and Statistics on service industry commodities. Sampling methods may vary between different industries. Probability proportional to size (PPS) and judicious sampling or a combination of these have been used as the main sampling methods. The services whose price development are monitored have been selected in cooperation with the enterprises who have been drawn into the sample.

Producer price Indices for services is published quarterly, which means that, as a rule, all prices are collected every quarter. Depending on the industry of the enterprise, the time of quoting the price may be the first, second or third month of the quarter. In industries with volatile prices, such as goods transport by road and sea, data are collected for the whole quarter. However, due to practical reasons when prices remain unchanged some price data are collected less often.

Since 2018 producer price indices for services have been compiled on a monthly level, as well. The primary frequency of data collection for the enterprises which have been selected into the sample after 2018 is monthly. The share of price data collected less frequently than once per quarter is about 20 per cent in the producer price indices for services.

The data collection frequencies are examined regularly for each enterprise and product to ensure a balance between the quality of the indices and the response burden of the enterprises.

The price data used in the calculation of the producer price indices for services are mainly collected from enterprises. The data are collected with the help of an online inquiry and email inquiries. In addition to data collected directly from enterprises, the index point figures and price data of the consumer price index are utilised. 

In planning the web inquiry, attention has been paid to user friendliness in order to reduce the response burden. Non-response is followed monthly.  

Producer price indices are “pure” price indices, which are not affected by changes in the quality of the products (in statistical terminology, quality changes refer to changes in the characteristics of the product). Efforts are made to eliminate price changes caused by changes in the characteristics of the products from the index. The physical, technical, and financial (such and conditions on financing, guarantee, whether product is sold to a wholesaler or retailer, etc.) characteristics of a product must remain unchanged. In practice, product characteristics change continuously. Changes to the characteristics and their treatment are among the main challenges in index calculations. In producer price indices, several methods are applied to control changes in the characteristics to make sure that the best possible method for measuring price change is always used.

Primarily, efforts are made to collect an overlapping price observation for the changed product. In practice, this means that as the product changes the price for the preceding period is collected in addition to the price for the current period. This allows the true change in the price to be calculated and the price history stays unbroken despite the change in the monitored product. The price for the current period can concern the month or quarter and the preceding period refers to the preceding corresponding period. If overlapping price observations cannot be obtained, various pricing methods can be used to measure/assess the price change, such as model or component pricing.

Expert assessment can also be used to assess price changes. In this case, the responder is asked to assess which proportion of the price change is a genuine change in price and which proportion is due to the change in the characteristics of the product. The expert assessment is based on the idea that the data supplier enterprise is best equipped to estimate the price development of its own products.

If neither an overlapping price observation nor an expert assessment can be obtained and price measurement methods cannot be applied, the price development of the product is imputed with the average change in the prices of other products belonging to the same commodity group. The imputation is based on the assumption that the prices of products in the same commodity group develop in roughly the same way.

If none of the above methods can be used, discretionary use of the following methods is possible:

• The characteristics of the changed product are assumed to be the same as that of the earlier product. In this case, the price change is included in the index as is.
• The price change is assumed to derive entirely from a change in the characteristics, in which case the price change is eliminated, and the index does not change as the product changes.

Price measuring and methodologies to control changes in quality are constantly being developed and international guidelines and recommendations are taken into account when applying different methods.

The producer price indices for services are so-called annual chain inices. In practice, this means, for example, that the weight structure of the indices is updated annually, even though the base year remains the same for five years. 

The overall index of the producer price indices for services describes average development in the prices of the product categories covered by the index. The individual products whose prices are monitored, or variants, reported by an enterprise do not have their own weights but the enterprise-specific CPA product category indices, or elementary indices, are calculated as the geometric average of the price ratios (=current price/price at comparison period) of the products belonging to that category. The elementary indices are aggregated into an overall index and to the higher levels of the CPA product classification according to Laspeyres' index formula with a weighting coefficient corresponding to each product category and enterprise. In other words, changes in the price ratios of individual products have different-sized effects on the overall index.

Producer price indices are used to describe short-term inflationary pressures in different sectors of the economy. They are also used in GDP and volume calculations. Research institutes and enterprises use the indices in their reports, monitoring and forecasts. They can also be used as index clauses in agreements.

Eurostat assesses six-monthly the fulfilment of the regulation requirements of short-term business statistics. The producer price indices for services belong to short-term business statistics, and Finland's latest assessment of the fulfilment of the regulations was the maximum, 10 points.

There are several possible sources of bias in the producer price indices for services. These sources of bias include:

• sampling error
• deficient product and enterprise frameworks
• non-response
• quality changes in service products included in price collection
• substitution bias

The calculation of producer price indices is based on a sample. Sampling error is always associated with sampling. In the calculation solution, the randomness caused by sampling is reduced by the fact that the statistics is based on a panel design: data has been collected repeatedly from the same respondents over a longer period. This procedure ensures that the price change estimates produced by the index are very precise in a sampling technical respect.

1. Substitution bias

• Producer price indices use the Laspeyres index formula. Scientific literature on indices often refers to the substitution bias that Laspeyres’ index formula may create. The direction of the bias depends on the target of measurement. In the case of the producer price indices, substitution bias may arise because (when maximising their profits) enterprises react to changes in relative prices by changing their production volumes. For example, if the price of light fuel oil rises relative to petrol, an enterprise engaged in the oil industry can produce more light fuel oil. In such a case, an index calculated with the Laspeyres’ formula underestimates price development from the enterprises’ viewpoint. The significance of the substitution bias depends on the scale at which individual enterprises are able to redirect their production when relative prices change.

2. Bias caused by new products

• Producer price indices may contain bias arising from the entry of new products or services on the market. When speaking of new products reference is often made to electrotechnical and electrical products or digital services whose production and sales can grow quite rapidly. The structural change is also fast in the service industry and new services are developed constantly. If the change is vigorous, the index may not describe sufficiently accurately the average development in the prices of the commodities produced in the economy.

3. Bias caused by quality change

• The objective of producer price indices is to describe pure price development, which is why changes in the quality or characteristics of products must be taken into consideration in the index calculation. The problem of quality change is usually encountered either when a data supplier reports that a product included in the collection is no longer produced, imported or exported, or that changes have been made to an existing product. Changes in quality may cause error in the index as the defining of a pure price change can be difficult and, conversely, the proportion of a price change that is due to changed quality is difficult to estimate and eliminate from calculations. If, as a product changes, we assume that the entire price change is due to a change in the characteristics of the product, we may disregard genuine changes in price, whereby the index incorrectly does not change at all for the product in question. If, then again, we assume that the entire price change is due to a genuine change in price, we may disregard changed product characteristics and the index changes too much.

The producer price indices for services are product-based statistics, that is, the main industry of an enterprise manufacturing, exporting or importing a product is irrelevant. The principle of statistics compilation is also economic ownership, that is, exports and imports of a product are not determined by physical movement of products across borders, but by economic ownership and its change. The data from which the samples and weight structures of the statistics are formed do not necessarily take these factors fully into account, which may cause both over-coverage and under-coverage to the sample.

The monthly non-response rate ranges from five to ten per cent in producer price indices.

Quality management requires comprehensive guidance of activities. The European Statistics Code of Practice forms the basis for the common quality system of the European Statistical System.

The Code of Practice is based on 16 principles that concern statistical authorities' independence, accountability and the quality of the processes and data to be published.

The principles are in line with the Fundamental Principles of Official Statistics approved by the United Nations Statistics Commission and are supplementary to them. The quality criteria of Official Statistics of Finland are compatible with the European Statistics Code of Practice.

Further information: European Statistics Code of Practice | Statistics Finland and Recommendations of the Advisory Board of Official Statistics of Finland | Statistics Finland

The quality of the producer price indices for services is evaluated in several different stages of the statistical process. Changes in unit-level data are examined monthly and the correctness of exceptional data is examined. Aggregate level data are also checked.

The producer price indices for services are not revised.

The producer price indices for services are published on the 24th day of the month following the statistical reference quarter or on the first working day following it.

The data are published on the days indicated in the release calendar.

European definitions according to the short-term business statistics regulation are used in the production of the statistics, so the data of the statistics are internationally comparable and cover the whole of Finland.

The time series of producer prices for services are mainly comparable over time.

The reference year, or base year, of the indices is 2021. The classification used in the releases is the CPA product classification instead of the previously used European industry standard classification system NACE. Publishing of data with base years 2015=100, 2010=100 and 2005=100 continue. Only the indices of the latest base year are genuinely calculated - indices with old base years are chained forward with the changes of the latest base year indices.

From 2019 onwards, the producer price indices for services are an annual chain index. In practice, the shift to the chain-linked index method means that the weight structure of the producer price index for services is updated every year. The new weight structure takes effect starting from the index for the first quarter of each year. In addition to the weight structure, product categories and the enterprise sample can also be updated annually. With the annual chain index method, changes in production, exports and imports can be taken into account.

The chaining coefficients of the overall indices of old base years are available in the Handbook for users. Chaining coefficients for other product categories may be requested from the statistical experts of producer price indices.

The weight structures of the indices updated in 2025

Starting from January 2025 data, the weight structure of the producer price indices for services was updated to reflect the structure of the 2024 economy. In addition to the weight structure, product categories and the enterprise sample were also updated.

The most recent available data from national accounts and Statistics on service industry commodities are used in preparing the weight structures. The most recent balanced data from the supply and use tables of national accounts concerned the year 2022.

The distribution data of the weight structures of the indices is available in the documentation section of the statistics.

The price indices concerning commodities compiled by Statistics Finland can be described as a system where the aim is to measure the development of prices at different stages of production and distribution. Producer price indices for agricultural products, manufactured products and services describe the price development at the early stage of price formation as products leave their producers or enter the country. The price index for wholesale goods would locate in the second stage of distribution.

Statistics Finland does not compile a price index for wholesale goods. Wholesale and retail trade margins come under the scope of description of producer price indices for services. In the classification of products, they mainly belong to categories 46 Wholesale trade, except of motor vehicles and motorcycles and 47 Retail trade (excl. motor vehicles and motorcycles); wholesale and retail trade of motor vehicles and the revision is differentiated into category 45. For the time being, Statistics Finland does not compile price indices for trade margins.

Development in the prices of consumption goods and services at the end use stage is measured by the Consumer Price Index.

The monthly, quarterly and annual data on the producer price indices for services are compiled in the same way so that they are fully congruent.

The producer price indices for services are used as a deflator in national accounts. National accounts supply and use tables are used in the compilation of the weight structure of the producer price indices for services.

The producer price indices for manufactured products and services measure development of the prices of products and services produced by enterprises. So, producer price indices depict inflation from the viewpoint of enterprises. Producer price indices belong to short term business statistics that describe the short-term development in various factors and areas of economy. Producer price indices for manufactured products are published monthly. Producer price indices for services are published quarterly.

Five different indices are produced under the producer price indices for manufacturing: producer price index for manufactured products, export price index, import price index, basic price index for domestic supply, and basic price index for domestic supply, including taxes (formerly wholesale price index). The producer price indices for services, in turn, describe the price development of services provided by enterprises to other enterprises and the public sector (Business to Business, BtoB), to households (Business to Consumers, BtoC) and to all end users (Business to All, BtoAll). All the above-mentioned indices measure price development slightly differently from each other because the price concepts used, and the industries covered vary by index.

The producer price indices for manufactured products and services are compiled with the same methods.

Statistics Finland publishes new statistical data at 8 am on weekdays in its web service. The release times of statistics are given in advance in the release calendar available in the web service. The data become public after they have been updated in the web service.

Further information: Publication principles for statistics at Statistics Finland

Statistics Finland's release calendar Future publications

Future publications of the statistics can be found on the page of the statistics at: Future publications of the statistics

The data are released to all users at the same time. Statistical data may be processed at Statistics Finland and information on them may be given before release only by persons involved in the production of the statistics concerned or who need the data of the statistics concerned in their own work before the data are published.

Further information: Publication principles for statistics

Unless otherwise specifically stated in connection with the product, data or service concerned, Statistics Finland is the producer and copyright owner of the data. The terms of use for statistical data.

The indices are published quarterly at the Statistics Finland's website. The producer price indices for services are not revised.

The release is published quarterly on the home page of the statistics.

There are no other publications.

The database tables of the statistics can be found in the StatFin database.

Monthly, quarterly and annual index point figures are available for producer price indices for services starting from the base year of 2015=100. For older base years (2010=100 and 2005=100) only quarterly and annual figures are published.

Micro-level data of producer price indices for services is used only for the production of the statistics. Currently only producers of the indices have access to the micro-level data.

Methodological description for the producer price indices for services (2015=100) is available in the statistics' Handbook for users.

The data protection of data collected for statistical purposes is guaranteed. The compilation of statistics is guided by the Statistics Act. Alongside the Statistics Act, the EU’s General Data Protection Regulation and the Finnish Data Protection Act are applied to the processing of personal data. Provisions on the confidentiality of data collected for statistical purposes are laid down in the Act on the Openness of Government Activities.

The data are processed only by persons who need the data in their work. The use of data is restricted by usage rights. All persons employed by Statistics Finland have signed a pledge of secrecy, where they have obliged to keep secret the data prescribed as confidential by virtue of the Statistics Act or the Act on the Openness of Government Activities.

Further information: Data protection | Statistics Finland (stat.fi)

The confidentiality of the information, prices, is taken into account when publishing the statistics: no information on individual enterprise can be deducted from the results. Such results are flagged as confidential when sent to Eurostat.