1. SPPI: BtoAll Indices Expanding the scope of publication Anna-Riikka Pitkänen 15.5.2014

2. Agenda Current situation Methodological work to compile BtoAll indices Implementation work Weighting Example: BtoAll index for sea and coastal transport Future plans Discussion 2

3. Current situation (1/3) The scope of the public Finnish producer price indices for services is BtoB, thus services provided to consumers are excluded In addition, the following BtoAll index point figures are submitted quarterly to Eurostat: H501_H502 Sea and coastal water transport H51 Air transport H53 Postal and courier activities J61 Telecommunications M69.1 Legal services M71.11 Architectural services 3

4. Current situation (2/3) Eurostat  requirements for BtoAll indices? The scope of ISP? Mentioned as one of the methodological issue in the forthcoming SPPI manual: Designing SPPI by destination of output (BtoB, BtoC, BtoAll and BtoE) Project in Statistics Finland: ”Calculating BtoAll service price indices and developing index for private health services” in 2008-2010 4

5. Current situation (3/3) SPPI estimated using CPI: passenger rail transport (interurban) taxi transport food and beverage service activities real estate agencies creative, arts and entertainment activities sports activities and amusement and recreation activities repair of computers and personal and household goods 5 Assumption: enterprise and household consumers pay the same prices for services or the price development of services is similar even if there were differences in, say, the price level and even service products

6. Methodological work to compile BtoAll indices (1/2) Indices describing the entire services sector would be calculated by merging data from the CPI and the SPPI Neither data collection, nor the burdening of the respondents needed to be increased International examples 6

7. To study differences between the price concepts and contents of the SPPI and CPI To find appropriate weights for the CPI and SPPI time series To test different relevant BtoAll calculating methods To decide on the method to be used 7 Methodological work to compile BtoAll indices (2/2)

8. Implementation work To design the BtoAll calculating project in detail (e.g. the project tasks, timetable of calculations and the work processes for the different time series) To plan the changes having to be made to the current production system with respect to BtoAll calculation in certain industries To design possible publication formats To calculate quarterly time series 8

9. Weighting The index series of the CPI and the SPPI would be primarily weighted together by utilising the data available from the supply and use tables of National Accounts Exception: Alternative weight structures were investigated in the case of telecommunication activities and telecommunication statistics was chosen as the main source for the weights in the telecom sector 9

10. Example: Weight structure of the BtoAll index of sea and coastal transport 10

11. Example: Development of the index of sea and coastal transport (confidential) 11

12. Future plans We will start to publish the BtoAll series in connection with the SPPI in the near future In addition to the BtoAll series send to Eurostat, we consider also publishing the following industries: E.g. renting and operating of own or leased real estate, bus traffic, hotel activity Added value for the users: the users could simultaneously track the development of prices for the services intended for both enterprises and households, as well as the development of service prices totalled up by customer group Informing of customers is important 12

13. Discussion Do you publish BtoAll indices or do you have plans to publish them? Do you publish BtoB, BtoC, BtoAll, (BtoE) separately? Resources available for developing SPPI? 13

14. Thank you for your attention! Questions? Anna-Riikka Pitkänen anna-riikka.pitkanen@stat.fi tel. +358 9 1734 3466 Susanna Tåg susanna.tag@stat.fi tel. +358 9 1734 2991 14