Import and Export Price Indices in the Czech Republic
Methodology | Contents |
Goods import and export price indices
The import and export price index has been calculated for the Czech Republic since 1993. The prices were measured by means of the national quarterly statistical questionnaire Ceny ZO1-04, but the monthly report Ceny ZO1-12 has been used since 1998. Besides these indices, the CSO also compile indices of average import and export prices in external trade (figures of the unit value type) calculated from customs data and the physical volume of imports and exports for different SITC groups. These reflect price trends on the one hand and changes in the product range (structure of the groups) on the other hand.
In 2000, a comprehensive revision of price indices was run. Since January 2001, the pattern of the index used to keep track of price trends in external trade has been relied on a set of chosen products, raw materials and supplies (the so-called price representatives) as well as on constant weights –structure of external trade in 1999; (the former indices stemmed from the import and export structure in 1993) - derived from customs statistics for 4-digit groups of the Harmonized System. Weights of the individual representatives were then set according to sold volumes of particular representatives or of whole groups of representatives, included by chosen reporting units in their reports.
The index is compiled according to the Harmonized System - Customs Tariff and is converted to suit the breakdown by SITC, Rev.3 main group and, for the needs of national accounts and Eurostat, the breakdown of the Standard Classification of Production (CZ-CPA).
The price representatives were chosen by enterprises, joint-stock companies and limited liability companies important for the external trade of the Czech Republic (i.e. by both production enterprises and enterprises engaged in foreign trade only- about 450 and 410 of them engaged in exports and imports, respectively. At present, the weight pattern includes approximately 1420 exported and 1200 imported products, raw materials and supplies - price representatives, which take up a significant share in the volume of rather significant groups traded in the framework of external trade (both exports and imports). Compared to condition before the revision, about 15% more respondents were addressed and the number of the representatives is also higher (by about 15%).
Price trends are measured on individual price representatives chosen in the framework of the 8-digit code of the Customs Tariff (Harmonized system). The price representatives are characterized by certain technical and qualitative parameters, mark, unit of measure and possibly stable foreign market. The sample of representatives represents all significant 2-digit-code groups of the Customs Tariff and the 2-digit-code groups then include all 4-digit-code groups of Customs Tariff, if possible. These groups include as possible all the most important 4-digit groups of the Customs Tariff. The groups, which mostly embrace non-standard products, and industrial plants, for which price indices cannot be calculated due to the non-repeatability of their imports or exports, are therefore represented only by repeatedly exported or imported product, on which price trends can be measured. However, only information on some selected classes and chapters of the Customs Tariff are released.
Reporting units state average prices in terms of weighted arithmetic mean (weighted by the amount of products in physical units) derived from prices achieved in rather significant trade transactions either in different countries or in a stable foreign market, provided it is included in the characteristic of the price representative concerned, for a whole reference month. Trade parity prices and FOB prices are measured for imports and exports, respectively
The basis of implementation prices are invoiced prices of significant import and export trade transactions - they are converted into CZK by average monthly exchange rates declared by the Czech National Bank. This is done is carried out either by a reporting unit or the Czech Statistical Office if prices are reported in a foreign currency. The price indices reflect thus changes in foreign exchange rates, too. The stated prices are free of duty, value added tax and consumer tax.
The indices are calculated using the Laspeyres formula.
p1 - the price (of representative) in the reference period
po - the price (of representative) in the base period
poqo - constant weights (relative structure) – the value of implementation of external trade in 1999
Since 2001, the basic price period for the calculation of the indices has included average prices of the individual representatives in 1999; the indices are also derived on the following bases: corresponding period of previous year = 100 and previous period = 100, and introduced as a standard index reference period for all price indices has been the 2000 average =100 (the previous indices used the 1993 average and the 1994 average for base periods). Shown is also the ratio of moving averages, which the sum of basic indices for the last 12 months related to the sum of indices for previous 12 months.
Linkage between the time series published up to the end of 2000 which are still valid and the revised indices released since 2001 is ensured by means of coefficients - converting bridges - calculated from the ratio of revised indices and initial indices for December 2000 to 1999 average. The converted time series of the indices for previous years can be found in the detailed publication “Import and Export Price Indices for the Czech republic - Revision 2000” (code 0210-01).
B. Price indices of international transport and of bank services
1) Price indices of international transport of goods by rail
These indices have been released since January 1998. Price trends are measured on 36 chosen representatives using the national statistical report Ceny Služ ZO 1- 12.
Measured are prices paid for rail transport of goods imported to, exported from or in transit on the territory of the Czech Republic. The selection and price characteristic of the price representatives are linked to tariffs for international transport of goods by rail applied in the Czech Republic. Average prices calculated from tariff prices and from contractual prices (including discounts) are measured when imports and exports are effected. As far as transport in transit is concerned, tariff prices are measured to be converted from the Swiss franc into the Czech koruna using the railway exchange rate in force at the time of price reporting. The established prices are averages for the whole month. The reporting unit is the České dráhy company.
2) Price indices of international transport of passengers by rail
The indices have been published since January 2000. Price development is measured on 78 selected representatives using the statistical report Ceny Služ ZO 1a- 12.
The price development is measured from the viewpoint of assets and liabilities in the balance of payments of České dráhy compared with international railway partners in Europe. The assets include payments of foreign railways for crossing our territory, where they have their target stations. Transport in transit, whose revenues are included in the balance-of-payments assets, is measured separately. Payments made by České dráhy to foreign countries for the use of foreign lines are included in liabilities.
For the purpose of calculating the price index, per ticket rates relating to the 2nd class carriage (without additional charge) are surveyed. International settlement of payments for passenger transport by rail has been made in terms of EUR since 1 January 1999 and converted from national currencies into CZK by České dráhy using the exchange rate in force at the time of reporting of prices. České dráhy are the reporting unit.
3) Price indices of international air transport
These indices have been also published since January 1998. Measured are prices in force on the 10th calendar day of the month under observation, using the national statistical report Ceny Služ ZO 2-12, which is filled in by the ČSA company.
A total of 84 airlines of regular air transport have been chosen for price representatives, of which 44 for passenger air transport and 40 for goods air transport. Prices of air tickets bought abroad are converted from national currencies into CZK, using the IATA-Clearing-House exchange rate in force at the time of price reporting.
4) Price indices of bank services related to foreign countries
The indices have been published since January 2001. Price development is measured by the statistical report Ceny Služ ZO 5- 12 on services selected as representatives.
The price movements are measured by tariffs of services offered to natural and legal persons in contact with foreign countries abroad. Chosen as reporting units were banks on the territory of the Czech Republic, which offer bank services related to foreign countries, which are charged to clients in CZK.
The calculation of the above-mentioned indices is carried out by the Laspeyres formula, since 2001 with constant weights from 1999. The weights in the index pattern were derived from 1999 sales/revenues and collections, and the average of 1999 = 100 was chosen for the constant price basis.
In 2000, a comprehensive revision of price indices was carried out. Revised in its framework were price indices of international transport of goods by rail and of international air transport, whose former price indices had been calculated since 1995 being based on the1994 weight structure. Linkage between the time series published by the end of 2000, which are still valid, and the revised indices published since 2001 is ensured like with price indices of imports and exports of goods. Price indices of international railway passenger transport and of bank services related to foreign countries, calculated as late as from 1999 and 2001respectively, were compiled in the framework of unification directly on the constant price basis 1999 average = 100.