Producer and import price index for commodities
What are the trends in the producers’ sales prices and the importers’ purchase prices? How have prices developed for selected commodity groups, such as iron and steel, wood or plastics? The Producer price index (home market + exports), Import price index and Producer price index for domestic supply of commodities (home market + imports) show the price trend of commodities at the first stage. The primary purpose of the indices is to be deflators enabling the measurement of the real-economic development of the Danish economy. In addition to that, they are used as key economic indicators and for contract adjustments in the corporate sector.
Explainer on…
The sales price of products at the first stage of distribution, which typically involves the sale of goods from the producer to other businesses. In the Producer Price Index, the relevant price is the basic price, which excludes VAT and other deductible taxes related to turnover. Taxes and duties on goods and services invoiced by the company, are also excluded, whereas any product-related subsidies and discounts are included.
The price of domestically produced goods and services, sold to the domestic market.
The price of domestically produced goods and services, sold to export.
The price of imported goods and services.
The price of a good or service actually paid in the market. It represents the actual price paid, inclusive of any discounts, surcharges or rebates, for an individual transaction that can be observed repeatedly
The process whereby companies price intra-group transactions to ensure that they are traded on market-like terms. This is done in practice by pricing the transactions so that each part of the group's value chain receives a profit that is within the limits set by the authorities.
Selected statistics on Producer and import price index for commodities
Price development in the aggregate producer and import price index for commodities
Approximately 6800 prices are collected each month. Of these, approximately 3600 prices are used for calculating the Producer Price Index for Commodities and approximately 3200 for calculating the Import Price Index for Commodities and approximately 5200 prices to calculate the Domestic Supply Price Index.
The sample of approximately 6800 prices are distributed over approximately 1100 item groups. These product groups are selected so that they cover a minimum of 70 percent of the total turnover value for the target population. Within each of these product groups, the largest companies are selected (top-down), based on revenue value. By selecting the largest companies within a given product group, it is assumed that as per basic market theory these larger companies, as price influencers, have both a large direct share or transactions but also an even larger indirect representativeness which helps to ensure a representative sample for the entire product group. Each of these companies is requested to select their most representative commodities, i.e. those products that most represent their sales and/or purchasing behavior within a given product group. In order to match the sales balances in the national accounts, only prices are collected from companies that have production or import value within the specific product groups.
Each selected company is determined by their legal entity registration. In Denmark's Statistics Business Statistical Register, the legal entities are determined by their CVR number. In cases where a company has multiple CVR numbers sharing the same activity these can be combined into one unit from which prices are collected, for example, franchises. The companies must, as far as possible, report the price in force on the 15th of the month. If no price information is available for the 15th of the month, an appropriate day earlier in the month or an average of the prices for the first 15 days of the month can be utilized. For industries or products with high variation within the month – an average price for the whole month is instead preferred.
Weights for aggregation purposes come from the National Accounts product balances, based on several internal primary sources (Industrial commodity statistics and International Trade etc.). This covers the main part of all trading in the first turnover stage in Denmark, within the delimitation of the purpose of the statistics. Companies under a defined size are not included in the national accounts of the national accounts.
Producer and import price index for commodities
Approximately 6800 prices are collected each month. Of these, approximately 3600 prices are used for calculating the Producer Price Index for Commodities and approximately 3200 for calculating the Import Price Index for Commodities and approximately 5200 prices to calculate the Domestic Supply Price Index.
The sample of approximately 6800 prices are distributed over approximately 1100 item groups. These product groups are selected so that they cover a minimum of 70 percent of the total turnover value for the target population. Within each of these product groups, the largest companies are selected (top-down), based on revenue value. By selecting the largest companies within a given product group, it is assumed that as per basic market theory these larger companies, as price influencers, have both a large direct share or transactions but also an even larger indirect representativeness which helps to ensure a representative sample for the entire product group. Each of these companies is requested to select their most representative commodities, i.e. those products that most represent their sales and/or purchasing behavior within a given product group. In order to match the sales balances in the national accounts, only prices are collected from companies that have production or import value within the specific product groups.
Each selected company is determined by their legal entity registration. In Denmark's Statistics Business Statistical Register, the legal entities are determined by their CVR number. In cases where a company has multiple CVR numbers sharing the same activity these can be combined into one unit from which prices are collected, for example, franchises. The companies must, as far as possible, report the price in force on the 15th of the month. If no price information is available for the 15th of the month, an appropriate day earlier in the month or an average of the prices for the first 15 days of the month can be utilized. For industries or products with high variation within the month – an average price for the whole month is instead preferred.
Weights for aggregation purposes come from the National Accounts product balances, based on several internal primary sources (Industrial commodity statistics and International Trade etc.). This covers the main part of all trading in the first turnover stage in Denmark, within the delimitation of the purpose of the statistics. Companies under a defined size are not included in the national accounts of the national accounts.
Price index for domestic supply of commodities
Approximately 6800 prices are collected each month. Of these, approximately 3600 prices are used for calculating the Producer Price Index for Commodities and approximately 3200 for calculating the Import Price Index for Commodities and approximately 5200 prices to calculate the Domestic Supply Price Index.
The sample of approximately 6800 prices are distributed over approximately 1100 item groups. These product groups are selected so that they cover a minimum of 70 percent of the total turnover value for the target population. Within each of these product groups, the largest companies are selected (top-down), based on revenue value. By selecting the largest companies within a given product group, it is assumed that as per basic market theory these larger companies, as price influencers, have both a large direct share or transactions but also an even larger indirect representativeness which helps to ensure a representative sample for the entire product group. Each of these companies is requested to select their most representative commodities, i.e. those products that most represent their sales and/or purchasing behavior within a given product group. In order to match the sales balances in the national accounts, only prices are collected from companies that have production or import value within the specific product groups.
Each selected company is determined by their legal entity registration. In Denmark's Statistics Business Statistical Register, the legal entities are determined by their CVR number. In cases where a company has multiple CVR numbers sharing the same activity these can be combined into one unit from which prices are collected, for example, franchises. The companies must, as far as possible, report the price in force on the 15th of the month. If no price information is available for the 15th of the month, an appropriate day earlier in the month or an average of the prices for the first 15 days of the month can be utilized. For industries or products with high variation within the month – an average price for the whole month is instead preferred.
Weights for aggregation purposes come from the National Accounts product balances, based on several internal primary sources (Industrial commodity statistics and International Trade etc.). This covers the main part of all trading in the first turnover stage in Denmark, within the delimitation of the purpose of the statistics. Companies under a defined size are not included in the national accounts of the national accounts.
Price index for domestic supply of commodities
Approximately 6800 prices are collected each month. Of these, approximately 3600 prices are used for calculating the Producer Price Index for Commodities and approximately 3200 for calculating the Import Price Index for Commodities and approximately 5200 prices to calculate the Domestic Supply Price Index.
The sample of approximately 6800 prices are distributed over approximately 1100 item groups. These product groups are selected so that they cover a minimum of 70 percent of the total turnover value for the target population. Within each of these product groups, the largest companies are selected (top-down), based on revenue value. By selecting the largest companies within a given product group, it is assumed that as per basic market theory these larger companies, as price influencers, have both a large direct share or transactions but also an even larger indirect representativeness which helps to ensure a representative sample for the entire product group. Each of these companies is requested to select their most representative commodities, i.e. those products that most represent their sales and/or purchasing behavior within a given product group. In order to match the sales balances in the national accounts, only prices are collected from companies that have production or import value within the specific product groups.
Each selected company is determined by their legal entity registration. In Denmark's Statistics Business Statistical Register, the legal entities are determined by their CVR number. In cases where a company has multiple CVR numbers sharing the same activity these can be combined into one unit from which prices are collected, for example, franchises. The companies must, as far as possible, report the price in force on the 15th of the month. If no price information is available for the 15th of the month, an appropriate day earlier in the month or an average of the prices for the first 15 days of the month can be utilized. For industries or products with high variation within the month – an average price for the whole month is instead preferred.
Weights for aggregation purposes come from the National Accounts product balances, based on several internal primary sources (Industrial commodity statistics and International Trade etc.). This covers the main part of all trading in the first turnover stage in Denmark, within the delimitation of the purpose of the statistics. Companies under a defined size are not included in the national accounts of the national accounts.
On the statistics – documentation, sources and method
See the documentation of statistics to learn more:
The statistics Producer and Import Price Index for Commodities show the price development of commodities in the first stage of transaction. The primary use is as deflators (converting nominal values to real values), but is also used as a business cycle indicator and for contract adjustments in the business sector. The index can be divided into Producer price index for commodities, Import price index for commodities and Price index for domestic commodities supply. The Price index for domestic supply of commodities can be traced back to 1876 and in the current form back to 1981. Producer Price Index for Commodities dates back to 2000 and Import Price Index for Commodities to 2005.