Chapter 15.
International Price Indexes
Publication
Index Construction
All reporting is voluntary and confidential; therefore,
no index is published in such a way as to reveal the
name, price, or price behavior of a particular
respondent. A publishable index must contain three or
more companies with at least one item having a usable
price. For the vast majority of indexes, there are
considerably more than three companies responding. Price
data are collected every month for 20,000 to 25,000 goods
and every 3 months for 1,500 to 2,000 service items.
The primary publication of the IPP is the monthly news
release. The release contains summary text, import and
export price indexes, and a technical note. The summary
text provides a general description of price movements
for aggregate merchandise and services areas as well as
for imports by locality of origin.
The merchandise indexes are published using three
different classification systems - Harmonized (HS),
Bureau of Economic Analysis End Use (End Use), and the
Standard International Trade Classification (SITC), Rev.
3. The HS, released by the Customs Cooperation Council,
was designed to be an international system used for
Customs tariff, statistical, and transport documentation
purposes. The HS contains homogeneous product groups, is
compatible with other classification systems, is familiar
to survey respondents who provide import and export
prices to the IPP since it is used for customs
documentation, and is used for sampling, weighting, and
collection of data. The SITC, also a commodity based
system, was created by the United Nations and was the
first classification system used by the International
Price Program to publish its price indexes.
The SITC contains historical data of export and import
price indexes going back to 1974 for some categories (as
compared to 1993 for HS). The End Use system created by
the BEA was designed to categorize items by use or
consumption rather than by the more traditional stage of
production. The End Use system also has historical data
available, and aggregates at the upper level which are
more equally weighted than the SITC. In addition, the End
Use system is used for demand analysis and to deflate the
national accounts.
The international services price indexes are published
using two other definitions since services are not
covered in the classification systems used for
merchandise trade. The first definition is a BOP basis
which represents transactions between United States
residents and foreign residents. The second is an
International basis which represents all transactions
with U.S. importers or exporters, regardless of
nationality.
The locality of origin indexes for imports cover
merchandise trade and are classified by industrial
origin. The indexes are calculated and published for
Japan, Canada, the European Union, and the Asian Newly
Industrialized Countries. In addition, these indexes are
grouped according to status as ''developed'' or
''developing.'' The indexes are available on a
quarterly basis beginning December 1990 and on a monthly
basis since January 1993.
The technical note included in the news release
describes the classification systems and the methods used
to calculate import and export price indexes. The
technical note also describes guidelines for price data
collection, the IPP revision policy, and appropriate uses
of the indexes.
Historical index and percent change tables prepared at
a more detailed level than the indexes shown in the
monthly news release are available upon request. Import
and export price indexes are published for a wide variety
of commodity areas with several levels of detail.
Currently, IPP publishes indexes for commodity areas with
at least $2 billion in annual import trade value or at
least $1.6 billion in annual export trade value based on
1995 data. Commodity areas that represent areas of trade
with smaller dollar values are incorporated into the
calculation of higher level indexes, but typically are
not published separately.
IPP data users can access the Internet at http://www.bls.gov for
a variety of information from the Bureau of Labor
Statistics. The IEP home page
contains an electronic version of the news
release as well as links to the LABSTAT database
which contains the complete set of available data. All of
the index series are also available for purchase on
diskettes in an ASCII or spreadsheet format.
The Bureau's fax-on-demand service is another means to
access data from the news release. The phone number is
(202) 691-6325. For this service, the news release is
divided into five parts:
2810 Text
2815 End use and locality of origin tables
2820 SITC tables
2825 Services tables
2890 Technical note
In addition, users of IPP data can be added to a
mailing list at no charge for the news release or any of
the detailed tables.
Next: Uses
and Limitations
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