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Eurostat-OECD Methodological Guide for Developing Producer
Price Indices for Services
Contents
Producer Price Indices for Services
E
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Part I. Methodological aspects r
o
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Chapter 1. General aspects of Service Producer Price Indices compilation t
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Chapter 2. Main pricing methods for Service Producer Price Indices O
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Chapter 3. Practical aspects of the development process C
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Part II. Producer Price Indices for specific service industries M
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Chapter 4. Waste management h
o
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Chapter 5. Wholesale and retail trade services o
lo Eurostat-OECD
Chapter 6. Transportation and storage g
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Chapter 7. Accommodation and food service activities a
l G Methodological
Chapter 8. Information and telecommunication u
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Chapter 9. Financial and insurance activities e
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Chapter 10. Real estate activities r Guide for
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Chapter 11. Professional, scientific and technical activities e
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Chapter 12. Administrative and support service activities lo Developing
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Chapter 13. Human health activities in
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Annex A. Classification systems by industry P
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Annex B. Classification systems by product d
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Glossary e
r P Indices for Services
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Consult this publication on line at http://dx.doi.org/10.1787/9789264220676-en. It
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ISbn 978-92-64-22066-9
9HSTCQE*ccaggj+
30 2014 06 1 P

Eurostat-OECD
Methodological Guide
for Developing Producer
Price Indices for Services
SECOND EDITION
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FOREWORD - 3
Foreword
The international Producer Price Index Manual (PPI Manual) published by the IMF
in 2004 constituted a landmark for international standards on price measurement. It
contains detailed, comprehensive information for the compilation of producer price
indices as well as an extensive coverage of conceptual and theoretical issues. The joint
Eurostat-OECD Methodological Guide for Developing Producer Price Indices for
Services (SPPI Guide) is a complement to the PPI Manual in two ways: it focuses on
service specific aspects in the PPI compilation by further developing the conceptual
framework and it adds detailed descriptions of PPI measurement for a series of service
industries.
Over the past decade, the field of service producer price indices (SPPI) has developed
further. Considerable methodological and practical progress has been made by both
European Union (EU) and non-EU OECD countries, resulting in a significant increase in
the availability of SPPI. This second edition of the SPPI Guide signifies this considerable
progress. It updates and replaces the first edition of the Guide that was published in 2005.
It aims to help countries in developing SPPIs by sharing experiences and lessons learnt in
the collection of data and the compilation of indices.
The second edition of the SPPI Guide has three objectives: first, to propose a global
and comprehensive framework that improves the understanding of problems related to the
specific nature of services: many services are unique, they are not repeated, at least not in
a fully comparable manner, or they might be customer specific; second, to identify
practical solutions implemented by countries for developing SPPIs for specific service
industry (e.g. transport and storage, information and communication services, and
professional, scientific and technical services); third, to promote new methodologies that
in some cases are still under development (e.g. financial intermediation, insurance, human
health activities) and for which the sharing of experiences and expertise will contribute to
address remaining issues and challenges.
The electronic version of the second edition of the SPPI Guide is available on the
websites of the OECD and Eurostat. The SPPI Guide should be considered as a ‘living
document’; in due course, it will be revised and updated, to incorporate additional service
industries and to address particular issues in greater detail. It is hoped that this Guide will
advance the development of services producer price indices in the OECD region and
beyond, thus providing better information for decision-making and analysis.
We trust that this second edition of the Methodological Guide for developing
producer price indices for services will foster the compilation, the understanding and the
use of producer price indices for services.

Martine Durand Walter Radermacher
OECD Chief Statistician and Chief Statistician and
Director of Statistics Director General of Eurostat
EUROSTAT-OECD METHODOLOGICAL GUIDE FOR DEVELOPING PRODUCER PRICE INDICES FOR SERVICES © OECD/European Union, (2014)

ACKNOWLEDGEMENTS - 5
ACKNOWLEDGEMENTS
The second edition of the SPPI Guide has been jointly produced by the OECD,
Eurostat and a joint Eurostat-OECD Task Force set up to oversee the revision and
updating of the 2005 edition of the SPPI Guide.
The joint Eurostat-OECD Task Force was established in 2011 and met three times: on
14-15 April 2011 (Paris, OECD), 26-27 September 2011 (Newport, U.K., Office for
National Statistics) and 26-27 April 2012 (Paris, OECD). The Task Force was chaired by
Nadim Ahmad (OECD) and Paul Schreyer (OECD). Delegates from Austria, Australia,
Canada, France, Germany, Hungary, Israel, Japan, Korea, the Netherlands, Mexico,
Poland, the United Kingdom and the United States participated in the Task Force. Several
among them contributed to the Guide by providing detailed descriptions of their
methodologies for compiling service PPIs; the others were represented by national
experts in meetings of the Task Force.
André Loranger (Statistics Canada) officially represented the Voorburg Group on
Services Statistics in the Task Force.
The first three methodological chapters in the Guide were written by the OECD and
Eurostat Secretariats, under the guidance of the Task Force. Anne-Sophie Fraisse
(OECD) is the principal author, with support from Thomas Jaegers (Eurostat). Niall
O’Hanlon (CSO Ireland) contributed significantly.
Chapters 4 to 13 of the Guide, which mainly report country practices, were drafted
under the responsibility of lead authors, again under the guidance of the Task Force:
Dorothee Blang (Destatis), Paul Boling (Australian Bureau of Statistics), Johanna von
Borstel (Destatis), Catherine Draper, (Statistics Canada), Anne-Sophie Fraisse (OECD),
David Friedman (U.S. Bureau of Labor Statistics), Denis Gac (INSEE), Alain Gallais
(INSEE), Ildikó Hamvainé Holocsy (Statistics Hungary), Christopher Jenkins (Office for
National Statistics United Kingdom), Hina Kikegawa (Bank of Japan), Michael Morgan
(Australian Bureau of Statistics), Bonnie Murphy (U.S. Bureau of Labor Statistics),
Aspasia Papa (Office for National Statistics United Kingdom), Christian Puchter
(Statistics Austria), Maria Schuch (Statistics Austria), Marcel Spanjaard (Statistics
Netherlands), and Ruth Vizner (Central Bureau of Statistics Israel).
Niall O’Hanlon (CSO Ireland) acted as the editor of the SPPI Guide with
contributions from Anne-Sophie Fraisse (OECD).
Eurostat and the OECD would like to thank all those who contributed by providing
comments and suggestions to the improvement of this Guide.
EUROSTAT-OECD METHODOLOGICAL GUIDE FOR DEVELOPING PRODUCER PRICE INDICES FOR SERVICES © OECD/European Union, (2014)

TABLE OF CONTENTS - 7
Table of contents
Abbreviations .............................................................................................................................................. 11
Producer Price Indices for Services .......................................................................................................... 13
Part I. Methodological aspects ................................................................................................................... 17
Chapter 1. General aspects of Service Producer Price Indices compilation .......................................... 19
1.1. Definition, uses and scope of Service Producer Price Indices ............................................................. 20
1.2. Product and industry based SPPIs ....................................................................................................... 24
1.3. Price concept ....................................................................................................................................... 25
1.4. Statistical units ..................................................................................................................................... 27
1.5. Classification systems.......................................................................................................................... 28
1.6. Identification of service products ........................................................................................................ 29
1.7. Sample frame and weights ................................................................................................................... 31
1.8. Treatment of quality change ................................................................................................................ 32
Chapter 2. Main pricing methods for Service Producer Price Indices .................................................. 37
2.1. Pricing mechanisms and methods ........................................................................................................ 38
2.2. Main pricing methods for SPPI ........................................................................................................... 43
Chapter 3. Practical aspects of the development process ........................................................................ 69
3.1. Preparatory work ................................................................................................................................. 71
3.2. Setting the objectives and scope .......................................................................................................... 72
3.3. Designing the weighting pattern and sample ....................................................................................... 73
3.4. Respondent initialisation phase ........................................................................................................... 76
3.5. Set-up of permanent framework .......................................................................................................... 78
Part II. Producer Price Indices for specific service industries ................................................................ 89
Chapter 4. Waste management .................................................................................................................. 95
4.1. Waste management (Denis Gac, INSEE) ............................................................................................ 96
Chapter 5. Wholesale and retail trade services ...................................................................................... 105
5.1. Wholesale and retail trade services (Catherine Draper, Statistics Canada) ....................................... 106
Chapter 6. Transportation and storage .................................................................................................. 121
6.1. Freight transport by road (Christopher Jenkins and Aspasia Papa, Office for National
Statistics United Kingdom) ...................................................................................................................... 122
6.2. Sea and coastal water transport (Anne-Sophie Fraisse, OECD) ........................................................ 132
6.3. Air transport (Christian Puchter, Statistics Austria) .......................................................................... 142
6.4. Warehousing and storage (Paul Boling, Australian Bureau of Statistics).......................................... 149
6.5. Cargo handling (Paul Boling, Australian Bureau of Statistics) ......................................................... 155
6.6. Courier and postal activities (Denis Gac, INSEE & Ildikó Hamvainé Holocsy, Statistics
Hungary) ................................................................................................................................................... 160
Chapter 7. Accommodation and food service activities ......................................................................... 177
7.1. Accommodation (Anne-Sophie Fraisse, OECD) ............................................................................... 178
EUROSTAT-OECD METHODOLOGICAL GUIDE FOR DEVELOPING PRODUCER PRICE INDICES FOR SERVICES © OECD/European Union, (2014)
8 - TABLE OF CONTENTS
7.2. Food and beverage service activities (Anne-Sophie Fraisse, OECD) ................................................ 191
Chapter 8. Information and telecommunication .................................................................................... 201
8.1. Publishing of books, periodicals and other publishing activities (Denis Gac, INSEE) ..................... 202
8.2. Software publishing (David Friedman, U.S. Bureau of Labor Statistics) .......................................... 208
8.3. Telecommunications (Christopher Jenkins, Office for National Statistics U.K.) .............................. 217
8.4. Computer programming, consultancy and related activity (Ruth Vizner, Central Bureau of
Statistics Israel) ........................................................................................................................................ 228
Chapter 9. Financial and insurance activities ........................................................................................ 241
9.1. Monetary intermediation activities (David Friedman, U.S. Bureau of Labor Statistics) ................... 242
9.2. Investment banking (David Friedman, U.S. Bureau of Labor Statistics) .......................................... 252
9.3. Security and commodity contracts brokerage (Hina Kikegawa, Bank of Japan) ............................... 261
9.4. Insurance (David Friedman, U.S. Bureau of Labor Statistics) .......................................................... 275
Chapter 10. Real estate activities ............................................................................................................. 287
10.1. Real estate activities with own or leased property (Aspasia Papa, Office for National
Statistics United Kingdom) ...................................................................................................................... 288
Chapter 11. Professional, scientific and technical activities .................................................................. 299
11.1. Legal activities (Christopher Jenkins, Office for National Statistics, United Kingdom &
Maria Schuch, Statistics Austria) ............................................................................................................. 300
11.2. Accounting, bookkeeping and auditing activities; tax consultancy (André Loranger,
Statistics Canada) ..................................................................................................................................... 309
11.3. Management consultancy (Denis Gac, INSEE) ............................................................................... 320
11.4. Architectural activities (Marcel Spanjaard, Statistics Netherlands) ................................................ 327
11.5. Engineering services and related technical consulting services (Marcel Spanjaard, Statistics
Netherlands) ............................................................................................................................................. 333
11.6. Technical testing and analysis (Ildiko Holocsy, Hungarian Central Statistical Office) ................... 341
11.7. Advertising (Johanna von Borstel, Destatis) ................................................................................... 352
11.8. Market research and public opinion polling (Aspasia Papa, Office for National Statistics
United Kingdom) ...................................................................................................................................... 364
Chapter 12. Administrative and support service activities ................................................................... 375
12.1. Employment activities (Dorothee Blang,Destatis) .......................................................................... 376
12.2. Security and investigation activities (Anne-Sophie Fraisse, OECD) ............................................... 387
12.3. Cleaning activities (Marcel Spanjaard, Statistics Netherlands) ....................................................... 395
Chapter 13. Human health activities ....................................................................................................... 405
13.1. Human health activities (Bonnie Murphy, U.S. Bureau of Labor Statistics) ................................... 406
Annex A. Classification systems by industry .......................................................................................... 419
Annex B. Classification systems by product ........................................................................................... 421
Glossary ..................................................................................................................................................... 423
Boxes
Box 1.1. SPPI by destination - the French experience .................................................................................. 23
Box 2.1. Classification of main pricing methods for SPPI ........................................................................... 42
Box 2.2. Direct use of prices of repeated services: passenger car rental industry ......................................... 44
Box 2.3. Contract pricing: Freight transport by road .................................................................................... 46
Box 2.4. Unit value: Telecommunications (Example 1) ............................................................................... 48
Box 2.5. Unit value: Air freight transport (Example 2) ................................................................................ 49
EUROSTAT-OECD METHODOLOGICAL GUIDE FOR DEVELOPING PRODUCER PRICE INDICES FOR SERVICES © OECD/European Union, (2014)