Industrial Producer Price Index

The Industrial Producer Price Index (IPPI) is an important short term indicator for the domestic economy that is designed to measure price trends for all goods that are produced by industries and sold on the market (total, domestic and foreign markets). The price trends measured should be as up-to-date as possible (measured monthly). The index includes activities in ÖNACE 2008 Sections B–E: mining and quarrying, manufacturing, and electricity, gas and water supply. Prices are measured on the basis of price information for goods that have been produced and sold by manufacturing establishments in the industry specified above, regardless of whether production was characteristic or non-characteristic. The price is based on the ex-factory price without VAT, which is the price that the business unit charges the customer (transaction price).

The Industrial Producer Price Index is calculated monthly on the basis of approx. 9 000 price observations, which are collected for around 1 200 selected product groups from approx. 1 580 manufacturing establishments.

The Regulation (EU) 2019/2152 of the European Parliament and of the Council of 27 November 2019 on European business statistics stipulates the compulsory calculation of Producer Price Indexes for the industries. The Industrial Producer Price Index is currently calculated and published on the base year 2021=100. Linking coefficients (available only on the German website) can be used to continue index series for the overall index, the ÖNACE/ÖCPA sections and divisions and for the EU-harmonised main industrial groupings of the IPPI (2021=100) with base year 2015, with base year 2010 or with base year 2005.

Since the Industrial Producer Price Index measures the change in prices in an earlier phase of economic activity than the consumer price index and the wholesale price index, it is an important leading price indicator. When combined with these two indices it represents a comprehensive system for showing macroeconomic price trends.

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