Lithuania - Producer Price Index (PPI)





Lithuania: Producer Price Index (PPI)

Mnemonic PPI.ILTU
Unit Index 2015=100, NSA
Adjustments Not Seasonally Adjusted
Monthly 0.79 %
Data Oct 2019 105.04
Sep 2019 105.88

Series Information

Source Statistics Lithuania
Release PPI
Frequency Monthly
Start Date 1/31/1996
End Date 10/31/2019

Lithuania: Price

Reference Last Previous Units Frequency
Consumer Price Index (CPI) Nov 2019 110.66 110.67 Index 2015=100, NSA Monthly
Producer Price Index (PPI) Oct 2019 105.04 105.88 Index 2015=100, NSA Monthly

Release Information
  • Definition: PPI measures the developments in output prices of a constant set of industrial goods produced by the domestic goods-producing sector.
  • Concepts: The concepts of the PPI in Lithuania are based on the standards described in the European System of Accounts 1995 (ESA 1995), as well as on the Council Regulations concerning short-term statistics (EU-STS), Producer Price Index Manual: Theory and Practice, 2004 (ILO, IMF, OECD, UNECE and World Bank), Methodology of Short-term Business Statistics. Interpretation and Guidelines, 2005 (Eurostat).

Scope of the data

  • Industrial coverage: All items belonging to the industries B – E of the NACE Rev. 2 (Mining and quarrying, manufacturing, electricity, gas, steam and air conditioning supply, water supply, sewerage, waste management and remediation activities).
  • Product coverage: Domestically produced industrial goods for sale on the Lithuanian market or sale on the non-Lithuanian market.
  • Geographical coverage: Entire territory of the country.

Exceptions to coverage

Important exclusions are Building of ships and boats (group 30.1), Manufacture of railway locomotives and rolling stock (group 30.2), Manufacture of air and spacecraft and related machinery (group 30.3).

Valuation

Types of prices: The prices collected are net transactions prices received by the producers for their largest consignments. The prices exclude value added tax and excise duties on products. Fob prices are used for goods sold on the non-Lithuanian market. Prices for goods sold on the non-Lithuanian market in foreign currency are converted into Litas using the official exchange rate as determined by the Bank of Lithuania.

Source data collection programs

  • Sources of weights: Weights are derived from statistical data on industrial production sales volume in value estimation when VAT and excises are excluded. 12 months summary on the monthly “Report P-12 on Industrial Production of the Enterprise” is used as an information source. The Enterprises Production of Commodities Survey covers all kinds of enterprises whose main activity according to EVRK Rev. 2 is mining and quarrying (B), manufacturing (C) and whose annual turnover is higher than LTL 0.2 million, as well as non-industrial enterprises whose industry-related annual turnover is higher than LTL 0.5 million. The enterprises whose annual turnover is lower than LTL 0.2 million, but which produce commodities important for the Lithuanian economy, are surveyed as well. Weights for representative products are based on sales values from enterprises (inquiry form KA-09). For activities within sections D and E complementary sources for weights are used.
  • Period of current index weights: Calendar year t-2 (t – reporting year) is the weights' reference period.
  • Frequency of weight updates: Annual, in December of year t-1.
  • Establishment selection: Purposive sampling, based on coverage of important commodities. Enterprises are chosen with a record of stable production and large share of sales in the respective PGPK product heading, i.e. the selected reporting units should cover more than 50 percent of sales in the respective PGPK product heading.
  • Product/transaction selection: Purposive sampling; i.e. products are chosen with high sales volume on the Lithuanian market and high sales volume on the non-Lithuanian market, and are constantly available. The selection is made by the reporting enterprise in conjunction with the specialists of Statistics Lithuania.
  • Product/transaction specification: The enterprises provide tight specification of selected products, including brand, content, material used, size of consignment, nature of customer, etc. in the annual inquiry form for selection of products (form KA-09).
  • Sample size: about 580 enterprises and 390 product headings, which account for about 70 percent of the total sales values of manufactured goods of industry in t-2 (t is the reporting year).
  • Number of product prices collected: About 1,750 per month: about 1,100 price quotes for about 320 product headings sold on the Lithuanian market from about 470 enterprises, and another about 650 price quote for about 270 product headings sold on the non-Lithuanian market from about 290 enterprises.
  • Price collection methods: Prices are collected on paper and electronic collection forms from individual establishments by mail questionnaire and website. Some data are collected by fax, e-mail, or telephone.

Source data timeliness

  • Timing of price observation: The prices collected refer to the 15th day of the reference month or as close to this date as possible. Important exceptions include refined petroleum products (class 19.20 of the NACE Rev. 2), crude petroleum (class 06.10 of the NACE Rev. 2), electric power generation, transmition and distribution (group 35.1 of the NACE Rev. 2) for which the prices are the averages during the reference month.

Source data statistical techniques

  • Computation of lowest level indices: The lowest level indices are the ratios of the individual prices of individual representative products of the current month to the prices for December of the previous year multiplied by 100.
  • Aggregation: Individual product indices are combined using Laspeyres formula and reference period weights to obtain higher level indices for product headings as well as for NACE classes, groups, divisions, sections, and the total industry.
  • Aggregation structure: Product indices are aggregated into 391 product headings, 143 main classes, 75 groups, 29 divisions, 9 special aggregates (analogous to the subsections of NACE rev. 1.1), 4 sections (B, C, D, E) of the NACE Rev. 2 and 5 main industrial groups.
  • Alignment of expenditure and base period: The weights refer to the sales volume in the year t-2 (t is the reporting year), while the reference price refers to December of the t-1. The annual weights are price adjusted to align with the price reference period.
  • Linking re-weighted index to historical index: The re-weighted index is annually chain linked to the historical index. December is the linking month.
  • Reference period: December of the previous year is the reference period for prices, 2015 is the reference period for indexes. Discontinued indexes are based to 2010, 2005 and 2000.

Other statistical procedures

  • Treatment of missing prices: In case of a missing price, the missing price is imputed by observing the movement in the index for similar products or group to which the product belongs or the previous observed price is carried forward.
  • Selection of replacement items: If a product becomes permanently unavailable within the year an appropriate replacement item is selected with specifications close to the previous variety. Quality adjustment, if required, is done.
  • Adjustments for quality differences: Prices are adjusted by two methods. According to the first - overlap method - prices are collected for old and new products in the same month and the difference in the two is taken as a measure of their quality difference. In the second method, explicit quality adjustment is made based on information on the percentage price effect of quality difference provided by the respondent.
  • Introducing new products: New representative items are introduced at the beginning of the year on the basis of the summary of the monthly surveys of sales of products conducted in the year t-2.
  • Seasonal items: When prices are temporarily absent for seasonal items, the last observed price is carried forward.
  • Seasonally adjusted indices: The index is not seasonally adjusted.

Validation of Intermediate Results

  • Verification of prices: Prices data are reviewed by the staff of Territorial Statistical Offices. In case of problems or suspect cases the respondents are contacted by telephone for clarification. The computerized system is introduced to check price movements: the monthly movements outside the range of -5% to +5% are only input after checking with the respondents.
  • Verification of processing: The computation of the index is manually verified by the price statistics staff of Central Statistical Office at various stages of its compilation by comparing it with comparable market information, for example, price movement of individual items with large weights in the index.
  • All PPIs are routinely subject to revision one month after the original publication, so as to reflect corrections made by company respondents. The revised indices are considered final.