Indexation
What is indexation? Are you required to adjust amounts in a contract according to an index? What has been the price increase for, for example, building materials? How much has the salary increased? Find a list of the most requested indices for contract, price, and salary adjustment and read more about how to use price indices for adjustment.
What is indexation?
Indexation is a way of adjusting prices and values to align with changes in an industry or the economy in general. This is done by using a predetermined index that measures the price level of goods and services over time.
Most popular indices for adjustment of contracts, prices and wages
The annual change in the consumer price index is used as a measure of inflation. Learn more about the index on the subject page Consumer price index. Use our Price calculator to compare prices from previously with today and see how the price level has developed over the years.
The Net Price Index shows the development in actual consumer prices minus taxes and duties. The index is especially used by businesses for the adjustment of contracts and lease agreements.
Learn more about the index and see our price calculator on the subject page Net price index.
In Statbank Denmark, you will find the following monthly indices by commodity group:
Consumer price index by commodity group (PRIS111)
Net price index by commodity group (PRIS114)
Introduction to each index and the latest published figures can be found on the subject page Indices for the construction sector.
For a comprehensive overview of all indices within the construction and civil engineering sector, please refer to Statbank Denmark.
Here is a selection of the most commonly used indices:
Construction cost indices for civil engineering projects (BYG61)
The index is calculated for the following categories: Earth work, Asphalt work, Concrete structures, Iron and steel structures, as well as sub-indices for Traffic performance by lorries and Materials and machinery. Additionally, an index for road construction is published, which is a composite of the indices for earth work, asphalt work, and concrete constructions.
Construction cost index for residential buildings (BYG42)
The index is broken down into seven sub-indices by profession and six sub-indices by building parts. Both the total index and sub-indices are divided into material costs and labor costs.
Producer price index for construction of dwellings (PRIS90)
The index show trends in prices in the first stage of commercial transactions for the construction, i.e., the transaction carried out between the construction company and the builder. The index describes the price of constructing dwelling, i.e. the price a household or a developer pays the construction company, e.g. a producer of turn-key houses, for the construction of a dwelling.
Producer price index for renovation and maintenance (PRIS91)
The index reflects the price developments for the production of refurbishment and maintenance services, i.e the price the household pays a company to perform a standard refurbishment and maintenance task. I.e. a carpenter changing a window frame.
Shows the price development of goods relating to the first commercial transaction (business-to-business). Primarily used for fixed-price calculations, it also serves as an economic indicator and for contract regulations in the business sector.
The latest published figures can be found on the subject page Producer and import price index for commodities. An overview of all producer and import price indices for goods can be found in StatBank Denmark
Here is a selection of the most commonly used indices:
Producer price index for commodities by industry groups and market (PRIS4015)
Shows the total price development in the first stage of turnover for commodities produced in Denmark. It includes commodities produced for domestic market and export. The prices are sales prices before taxes and duties.
Import price index for commodities by industry groups (PRIS4115)
Shows the total price development in the first stage of turnover for commodities imported into Denmark. The prices are purchase prices, including transportation, before taxes and duties.
Price index for Domestic Supply by commodity group (PRIS1115)
Shows the total price development in the first stage of turnover (business-to-business) for commodities used in Denmark. It includes commodities produced for domestic market and imported commodities.
Introduction to the index and the latest figures can be found on the subject page Producer price index for services.
In StatBank Denmark, you can find:
Producer price index for services (PRIS1515)
Shows the price development in the first stage of commercial transaction of services, i.e. producers' selling prices to other producers (business to business), for the domestic market and export.
There are two types of wage indices: “The standardised index of average earnings" and "The implicit index of average earnings". The difference is described in the “Documentation of statistics”, section “Coherence - cross domain”
Internationally, the implicit index of average earnings can be compared to the labor cost index collected and published by Eurostat for all EU countries.
An overview of all wage indices can be found in StatBank Denmark.
Here is a selection of the most commonly used indices:
Standardised index of average earnings
Standardised index of average earnings by industry and sector (SBLON1)
Standardised index of average earnings by occupation and sector (SBLON2)
Implicit index of average earnings
Implicit index of average earnings in corporations and organizations (ILON12)
Implicit index of average earnings in the public sector, central government (ILON22)
Implicit index of average earnings in the public sector, local government (ILON32)