OECD Statistical Programme of Work 2008, Part II Purchasing…

OECD Statistical Programme of Work 2008, Part II



    Purchasing Power Parities and Prices




                                          135
OECD Statistical Programme of Work 2008, Part II



     Purchasing Power Parities and Prices
        Methodology for Producer Price Indices
Purpose
The measurement of prices and volumes in the service sector is a significant statistical challenge. Yet,
services account for a large part of OECD economies' employment and value-added and their measurement
is key. The present activity is designed to advance methodological work on producer price indices (PPI), in
general, and for service industries, in particular.

Another objective is to take stock of available service PPIs (and/or state of their development) in member
countries and in some other countries that work in this field of statistics.


Objectives and outputs
The objective is to advance a common understanding and methodology for PPIs in selected service
industries. Improvement and harmonisation of methodology is particularly topical because services PPIs are
presently under active development in many OECD member countries. In 2008, the work continues in co-
operation with other international organizations and the services PPI Guide will be updated. A central tool in
the development work is the annual inquiry about country practices in the compilation of services PPIs.
Results of this inquiry are used also for identifying series that are appropriate to be incorporated into the
OECD PPI data work.


Main Developments for 2008
General aspects:

The services PPI Guide will be updated in co-operation with Eurostat. Usability of the PPI inventory will be
improved.




                                                     136
OECD Statistical Programme of Work 2008, Part II



      Purchasing Power Parities and Prices
                                     Price Indicators
Purpose
To provide a set of relevant, reliable, timely monthly and quarterly price indices for internal and external
users. To provide methodological information on these price indices.


Objectives and outputs
The 'Price Indices' dataset in the Main Economic Indicators (MEI) publication and database contains statistics
on Consumer prices, Producer prices and Construction costs for 30 OECD member countries and 6 BRIICS
countries. The data series presented within these subjects have been chosen as the most relevant prices
statistics in the MEI database for which comparable data across countries is available. In all cases much
effort has gone into ensuring international comparability and into the availability of historical time-series for
analysis.

Organisation of Seminars to discuss methodological issues. A manual on real estate prices will be written.


Non-member countries involved in the activity:
Brazil, China, Indonesia, Russian Federation, South Africa


Databases
MEI

MEI_PRICE


Main Developments for 2008
General aspects:

Implementation of construction costs series and related metadata, as well as the PPI classification.


Data management:

Harmonisation of metadata across countries and introduction of new inflation measures.




                                                      137
OECD Statistical Programme of Work 2008, Part II



      Purchasing Power Parities and Prices
                       Purchasing Power Parities
Purpose
Produce reliable and timely Purchasing Power Parities (PPPs) data for OECD member countries. PPPs are an
important tool to compare levels of real income or real output across countries with indicators such as GDP
per capita and relative price levels between countries.


Objectives and outputs
Finalisation of the data collection for the 2005 round which started in 2003 and covers 46 countries (30
OECD countries and 16 non-member countries). Calculation of the final results for 2005 at the end of the
year. Work closely with Eurostat to further harmonise the methodology employed. Organisation of the data
collection for the 2008 Round. Organise annual meeting in Tokyo with non-European OECD countries ("The
Pacific Group") to have closer relationships with countries at all stages of the round and to present the final
2005 results for agreement before the publication. Participate in the ad-hoc task forces set up by Eurostat to
discuss various issues associated with PPPs (In 2007, Task forces on non-market services, integrated PPP
database and construction).

Provide technical input into the 2005 round of the ICP currently being organised by the World Bank. The
work will go on in 2008.


Databases
ANA

Purchasing Power Parities


Main Developments for 2008
General aspects:

Improvement of PPPs for non-market services.




                                                     138
OECD Statistical Programme of Work 2008, Part II



     Purchasing Power Parities and Prices
   Purchasing Power Parities for Non-member
                 Economies
Purpose
To calculate benchmark purchasing power parities (PPPs) for selected non-member countries either
specifically within the OECD PPP Programme or more generally for the European Comparison Programme.
PPPs are currency converters that equalise price levels between countries; they are necessary in order to
make inter-country price and volume comparisons of GDP and its component expenditures.


Objectives and outputs
Contribute to the organisation of 2008 round of the OECD PPP Programme. Non-members covered include
Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Estonia, Israel, Latvia, Lithuania, Macedonia,
Malta, Romania, Serbia, Montenegro, the Russian Federation and Slovenia.


Non-member countries involved in the activity:
Albania, Bosnia and Herzegovina, Bulgaria, Croatia, Cyprus, Israel, Latvia, Lithuania, Macedonia, Malta,
Romania, Russian Federation, Slovenia


Databases
Purchasing Power Parities for non-member countries


Main Developments for 2008
General aspects:

No major changes.




                                                    139