Producer price indices for services

Name: Producer price indices for services
Topic: Prices and price indices

Division for Price Statistics

Only national level.

Frequency: Quarterly

Timeliness: Published within 57 days after the end of the reference period.

EUROSTAT

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The purpose of the statistics is to measure price developments for services provided by Norwegian registered producers within the service sector, with industry codes 49 to 82 (except 64-66, 72 and 75). This includes the main business areas:

• H - Transport and storage
• I - Accommodation and catering activities
• J - Information and communication
• L - Sales and operation of real estate
• M - Professional, scientific and technical services
• N - Business service provision
• The statistics follow the EU regulation on short-term statistics.

Indices developed before 2024 were published as individual statistics, but are now included in an overall index for the producer price index for services (SPPI). A restructuring of the index is underway (2023-), which affects all individual indices, including publication level, method and data collection. This restructuring will both improve quality, degree of coverage and the workload for respondents in the long term.

The indices developed after 2006 have been recalculated up to and including 2006 using estimates. For activities where historical price information has not been available, the wage statistics has been used.

The Service Producer Price Indices show the price development in various service industries. It is primarily used as a deflator in the National Accounts of Statistics Norway. In addition, it can be used as an indicator in the formulation of monetary policy. Eurostat uses the statistics to compare price developments between European countries.

With regard to the use of statistics for contract adjustment, it is important to emphasize that Statistics Norway is not responsible for either the users' decision to adjust contracts or the choice of index. Statistics Norway, on the other hand, can provide information on available indices and details on these.

It is important to emphasize that the statistics measure price development for services in the various industries and it says nothing about the cost development in these industries. Various cost indices should be considered instead, or the consumer price index for adjusting wages and rents.

No external users can access the statistics before they are published and accessible simultaneously for all users on ssb.no at 8 am. and following a minimum of three months' advance notice given in the Statistics Release Calendar. This is one of Statistics Norway's key principles for ensuring that all users are treated equally

Statistics Norway also produces the Producer Price Index (PPI) which measures the price development of goods and services produced by Norwegian producers in SIC2007 section B-E.

Producer price indices for services should also be considered together with quarterly turnover statistics and annual structural statistics for the same services.

The producer price indices for services are also used in National Accounts.

Passenger air transport: An index describing price development on passenger air transport is also published as part of the CPI. When comparing the two price indices, careful consideration should be given to the following points:

• Different purpose: While the CPI measures the price development for products sold to consumers, the SPPI measures the price development on services sold by producers, which together with sales volumes give the producers turnover. The concepts differ in the sense that producers of services usually collect fees or taxes for a third party (e.g. VAT, airport taxes, etc).

• Differing price definitions: While the SPPI consists of listed prices and actual volumes, the CPI replicates a typical behaviour of consumers purchasing such services, hence, prices are observed on a given trip by airplane which is kept fixed between two periods.

Freight transport by road: Statistics Norway also publishes a monthly cost index for road goods transport.

Lov om offisiell statistikk og Statistisk sentralbyrå (statistikkloven) fra 2019-06-21;

§ 10, vedtak om opplysningsplikt og § 20, vedtak om tvangsmulkt

EBS (Regulation (EU) 2019/2152)

The population includes enterprises and establishments within the service sector:

• H - Transport and storage (NACE 49-53)
• I - Accommodation and catering activities (NACE 55-56)
• J - Information and communication (NACE 58-63)
• L - Sales and operation of real estate (NACE 68)
• M - Professional, scientific and technical services (NACE 69-71, 73-74)
• N - Business services (NACE 77-82)

All are classified according to the Standard for food grouping; SN2007 (NACE Rev. 2)

The statistics are covered by surveys for each activity. In the long term, every activity will be covered by the same survey: Producer prices for services, RA-3000. The most important data source is electronic data from the enterprises. In addition, data from the National Security Authority (NKOM), NHO Service, the Consumer Price Index (CPI), Statistics Norway's wage statistics and Business statistics are used.

The business and enterprise register (VOF) is the main source for drawing the samples for the industries.

For most industries, the sample is drawn according to the PPS method (Probability Proportional to Size), which means that the larger the business (measured by turnover), the greater the chance of being drawn into the sample. A lower limit for inclusion in the sample is used in some cases to delineate the population. The sample is also rotated to ensure a fair distribution of the response burden for industries with a considerable population size.

The statistics are covered by activity-specific surveys. In the long term, all activities will receive the same survey: Producer prices for services, RA-3000. Data is received through an electronic questionnaire in Altinn. In addition, SSB receives file data from some activities, where this is more efficient.

The surveys are adapted to each industry's pricing mechanisms and the characteristics of the services. At the micro level, one follows the price development of the producers' individual services over time, where the characteristics of the service are kept fixed.

Manual and automatic controls of data are performed.

The respondent is contacted about information that seems unreasonable or deviates greatly from previous reporting.

Indices are calculated using a chain-linked Young formula, which is a version of the Laspeyres formula. A Laspeyres formula is characterized by constant weights for a given period. The frequency of updating the weights for the different SPPIs vary. Weights are usually updated less frequent than once per year.

On the lowest level in the hierarchy of index calculations, a geometrical average of prices relative to the prices in the base period are calculated.

The index reference period is 2021=100.

The following price definitions are applied:

• Road freight transport: Prices are measured as invoiced prices on long-term contracts by type of goods, for example frozen and chilled goods, oil products, piece- or container goods and dry goods.
• Passenger air transport: Average price of tickets per price category is calculated based on turnover, number of sold tickets and price category. Based on the various price categories indices are calculated for business trips (B2B), leisure trips (B2C) and total index (B2A). The distinction between B2B and B2C reflects the different options related to ticket flexibility for various tickets. Flexible tickets are considered B2B whereas non-flexible tickets are considered B2C.
• Storage: Prices are measured as invoiced price on representative storage services, such as bulk, frozen or chilled goods, dry goods, containers or hazardous goods.
• Cargo handling: Prices are measured as invoiced prices on contracts related to various types of cargo handling, including wet bulk, dry bulk, container Lolo, container Roro, self-propelled Lolo and Roro and piece goods.
• Postal and courier activities: Prices are measured as invoiced prices on representative postal and courier activities.
• IT services: Prices are measured as average invoiced hourly price for IT consultants with different profiles. The different profiles are: IT architecture, system developers, IT project management, IT consulting and IT infrastructure. In addition, the IT consultants are classified according to four different competence levels within each profile based on education and professional experience.
• Telecommunication services: Unit prices are calculated based on turnover and volumes for the following services: Landline, mobile telephony, mobile and fixed internet broadband.
• Business and management consultancy activities: Prices measured are average hourly rates. Respondents are asked to report invoiced rates if available or alternatively report list prices, excl. VAT.
• Accounting and auditing activities: Price measured are average rates hourly rates. Respondents are asked to report invoiced rates if available or alternatively report list prices, excl. VAT.
• Architectural services: Prices measured are average hourly rates, excl. VAT.
• Legal activities: Prices are measured as average invoiced hourly rates, excl. VAT. Respondents are asked to report invoiced rates if available or alternatively list prices.
• Civil engineering activities: Invoiced hourly rates are calculated based on reported report turnover (excl. VAT) and number of hours worked, for different fields of activity.
• Advertising activities: In this industry prices are measured according to two distinct price definitions. For advertising agencies prices are measured according to average invoiced hourly rates, excl. VAT. For enterprises involved in advertising dissemination average invoiced prices are collected on repeated services.
• Technical testing and analysis: Average invoiced prices are measured on repeated services within six business services: certification of systems, certification of products/personnel, testing and analysis, inspections and controls, measuring and validation services and classification.
• Car rental: Prices are measured include any possible additions regarding extra rental periods/driving distance, insurance, airport fee or other additions. VAT, fuel expenditures and possible one-way fees are not included.
• Employment activities: Invoiced hourly rates are calculated based on invoiced turnover and number of hours worked for different fields of activity.
• Cleaning activities: Price are measured according to invoiced prices, excl. VAT, on long-term contracts within traditional cleaning services.

Not relevant.

Collected and disseminated data are treated according to provisions in the Statistics Act and principles of confidentiality, which ensures that sensitive information on individual enterprises is not identifiable.

The use of collected data from respondents are in accordance with provisions in the Statistics Act.

Norway Post (Norwegian postal Service) agreed that Statistics Norway is the responsible to publish a national index for postal services.

Starting with 1st quarter 2024 all indices are published on the website of Statistics Norway with 2021=100 as the index reference period. Earlier publications were published with 2010=100 as the index reference period. However, changing the index reference period only represents a change in the level of the index and does not have any impact on the rates of change.

In 1st quarter 2015, the index for passenger air transport was recalculated and revised for the period back to 1st quarter 2006. The revision was based on weights reflecting better the distribution of the turnover of the respondent in this industry. This revision had highest impact on the price development for the period 2013-2014.

Measurement errors could be caused by respondents possibly misinterpreting and thus not correctly answering the questionnaires. Processing errors are possible errors introduced during treatment and processing of data in Statistics Norway. Web-based reporting is designed to reduce such type of errors. At same time production processes include controls of both detailed and aggregated data.

Respondents are contacted in situations where the controls disclose possible errors in the reported data.

All sample-based surveys are associated with some non-response, either because of respondents not returning the questionnaires or because the questionnaire is inadequately completed. The response rate is normally above 95 per cent.

Sampling bias may occur in situations where some services or enterprises are poorly represented compared to actual situation in the market.

In order to reduce sampling bias, the largest enterprises are always included in the sample. In addition, the samples are stratified to ensure a representative sample. Furthermore, samples are renewed on a regular basis in order to minimize possible sample bias given that the population size is sufficiently large.

Sampling errors and sample variance are not calculated.

Not relevant.