Finland - Wholesale Price Index

For Finland, the producer price indices measure the development of commodity prices from the perspective of enterprises. The producer price indices comprise five separately produced indices, which measure price development differently because the used price concepts and the covered industries vary by index.

Active:

• Classifications:
  • CPA Ver 2.1
  • MIG
• Fixed-base index relative to 2015 (Index 2015=100)
• Adjustment: Not seasonally adjusted (NSA)
• Native frequency: Monthly
• Start date:

Predecessors:

• 2010=100
• 2005=100
• 2000=100

The producer price indices comprise the following five indices:

• Producer price index for manufactured goods
• Export price index
• Import price index
• Basic price index for domestic supply
• Wholesale price index. 

The coverage of industries and the applied price concept vary somewhat by index. All data collected for the producer price indices are confidential.

The producer price index for manufactured goods measures average changes in the prices of goods sold by domestic producers. The index includes both goods sold at home and exported goods. The price used for goods intended for the domestic market is the so-called factory price exclusive of taxes. The price of export goods is the price obtained by the exported, which is usually the same as the f.o.b. (free on board) price of the exports. The produce price index for manufactured goods covers industries C to E, i.e. commodities from minerals to electricity, gas and water.

The export price index measures developments in the f.o.b. prices of export goods. Foreign-currency export prices are converted into euro according to the mid-month rate of the statistical reference month. The export price index covers the commodities of industries A to E, i.e. those from agricultural products to electricity, gas and water.

The import price index measures developments in the c.i.f. (cost, insurance and freight) prices of import goods. Foreign-currency import prices are converted into euro according to the mid-month rate of the statistical reference month. The import price index covers the commodities of industries A to E, i.e. those from agricultural products to electricity, gas and water.

The basic price index for domestic supply measures developments in the prices of goods used in Finland as they first enter the market. The index includes both domestic and imported goods. The price for domestic goods is the factory price exclusive of taxes. The price for imported goods is the c.i.f. of the imports plus customs duties. The basic price index for domestic supply covers industries A to F, i.e. commodities from agricultural products to construction.

The wholesale price index measures development in the purchase prices inclusive of taxes of goods used in Finland. The index includes both domestic and imported goods. The wholesale price index includes the value-added tax and other indirect taxes. Besides the value-added tax, indirect taxes include diverse excise taxes, and the motor car and motor cycle tax. The wholesale price for domestic goods comprises the factory price, value-added tax and other indirect taxes. The wholesale price of imported goods comprises the c.i.f. price of imports, customs duties, value added tax and other indirect taxes. The wholesale price index covers industries A to E, i.e. commodities from agricultural products to electricity, gas and water.

Concepts and Definitions:

• Annual change: Annual change is the relative change of the index in comparison with the corresponding time period one year ago (e.g. annual change of total index of consumer prices, i.e. inflation).
• Base index: In the base index the price of the calculation period is always compared with the base period. In the base index weights are usually changed less often than yearly, for example, at intervals of five years.
• Basic price index for domestic supply: The basic price index for domestic supply measures development in the prices of goods used in Finland as they enter the market. The index includes both domestic and imported goods. The price for domestic goods is the factory price exclusive of taxes. The price for imported goods is the c.i.f. price of the imports plus customs duties. The index covers commodities classified under industry categories A to F.
• C.i.f. price: The price inclusive of cost, insurance and freight. The seller pays the sea freight to the agreed port of destination and takes out marine insurance for the goods in the buyer's favor.
• Chain index: In the chain index the comparison takes place always between successive calculation periods. In the chain index the change in two calculation periods is used to take forward the index point figure of the desired base period. In the chain index the weights are changed in principle in each calculation period. At times the chain index is also mentioned in such cases where the comparison period is retained fixed in comparisons within the year, but the comparison period and the weight structure of the index is changed whenever the year changes.
• Export price index: The export price index measures development in the f.o.b. prices of export goods. Foreign-currency export prices are converted to euro using the mean rate for the statistical reference month. The index covers commodities of industry categories A to E.
• F.o.b. price: Price free on board a vessel. Value of goods at basic price inclusive of transport and delivery to the designated border location and possible taxes on export goods less subsidies.
• Import price index: The import price index measures development in the c.i.f. prices of imported goods. Foreign-currency import prices are converted to euro using the mean rate for the statistical reference month. The index covers commodities classified under industry categories A to E.
• Index: An index is a ratio describing the relative change in a variable (e.g. price, volume or value) compared to a certain base period (e.g. one year). The index point figure for each point in time tells what percentage the given examined variable is of its respective value or volume at the base point in time. The mean of the index point figures for the base period is 100.
• Index formula: Index formula is a mathematical function by means of which an individual key figure describing change is calculated from observation values (e.g. Fischer, Laspeyres and Paasche index formulas).
• Monthly change: Monthly change is the relative change in the index from a time period one month earlier. The change is usually expressed as a percentage.
• Point figure: Point figure is a change quantity used in price indices, which expresses the price, average price or index of the comparison period relative to the price, average price or index of the base period. The point figure of the base period is usually denoted by the number hundred. For example, if the point figure for a commodity at a certain point in time is 105.3, it means that the price of that commodity has risen by 5.3 per cent from the base period.
• Producer price: The price received by an enterprise for its commodity or service.
• Producer price index for manufactured products: Producer price index for manufactured products measures development in the producer prices of goods manufactured in Finland. The index includes both goods sold at home and exported goods. The price for domestic goods is the factory price exclusive of taxes and the price for export goods is the f.o.b. price. The index covers commodities of industry categories B to E.
• Weight structure: Describes what meaning each sub-index (commodity, employee group, etc.) belonging to the index has for total index.
• Wholesale price index: The wholesale price index measures development in the purchase prices inclusive of taxes of goods used in Finland. The index includes both domestic and imported goods. The wholesale price for domestic goods is the factory price plus value-added tax and other indirect taxes. The wholesale price for imported goods is the c.i.f. price plus customs duties, value-added tax and other indirect taxes. The index covers commodities of industry categories A to E.

Producer price indices have been revised and their base years have been changed to 2005. The weight structures of the producer price indices have been revised, the enterprise and commodity samples have been updated and the volume of price data has been increased considerably. The revised standard industrial classification, TOL 2008, was also introduced in connection with the periodic review.

The introduction of the revised industrial classification means i.a. at the main industry level that fishing has been combined with agriculture and forestry into industry A, electricity and gas supply have been combined with steam and air conditioning supply into industry D and water supply has been combined with sewerage, waste management and remediation into industry E. More detailed information about TOL 2008, including its contents and classification principles, is available under Classifications on Statistics Finland Internet pages at http://tilastokeskus.fi/meta/luokitukset/index_en.html

All publishable point figures according to the revised standard industrial classification and the base year are available in Statistics Finland's StatFin database. For the time being, producer price indices according to the old industrial classification, TOL 2002, and with base year 2000=100 will also be published in the StatFin database. However, the division to domestic and imported goods for the basic price index for domestic supply and the wholesale price index with base year 2000=100, and the division to domestic and exported goods for the producer price index for manufacturing, will no longer be available.

Moody's Analytics supplements

For the general index, we construct a seasonally adjusted counterpart.

Corrections

• 23 December 2022

Further reading

At the source:

• Correction on 23 December 2022

At IMF (SDDS Plus):

• Price index: Producer prices (Jan 2020 / Jan 2022)

• 6 Jan 2023, Phillip Thorne - Properties, Moody's Analytics supplements, Corrections, Further reading