1 Japanese SPPI (CSPI: Corporate Service Price Index) - Compilation Methods and Its Usage - OECD Short-term Economic Statistics Working Party (STESWP) Meeting Paris, OECD June 2007 Kuniko Moriya, Bank of Japan

2 1.Definition of CSPI - What is CSPI? -  CSPI (Corporate Service Price Index) is a price index which compiles transaction prices of services produced domestically and imported among corporations.  CSPI corresponds to CGPI (Corporate Goods Price Index) which captures transaction prices of goods among corporations.

3 2.Purpose of CSPI - For what is CSPI compiled? -  For obtaining economic indicator of services prices. --- Importance of the service price statistics has increased following the increase of service transactions.  For obtaining deflators of NA.  For indexation in business contracts.

4 3.Scope of CSPI - What is captured by CSPI? -  Coverage of Each Price Index (based on the I-O tables)

5 4.Classification of CSPI - How is CSPI aggregated ? -  Five strata --- All items (1), Major groups (5), Groups (17), Subgroups (40), Items (110)

6 5.Comparison with CPC by ISIC - How many categories are published based on CPC Ver.1 by ISIC Rev.3 ? -  Number of Reported CPC and Distinct Other Products Prices by Country and Activity Source: OECD-Eurostat 2005 Inquiry on National Collection of Services Producer Prices

7 6.Start Date and Frequency - When did BOJ start publishing CSPI? – - How often is CSPI published? -  In January Published series were quarterly basis and available from the Q index.  In September 1993, CSPI has changed to monthly basis from the July 1993 index. Monthly indexes from January 1985 up to June 1993 were also provided at the same time.

8 7.Questions to CSPI (1) - Why does BOJ compile service price index as CSPI separating from goods price index CGPI? -  Because, mainly following three points; (1) Limitation of weighting data. (2) Incomplete coverage of service price index. (3) Consideration of CGPI continuity which has a long history for over 100 years.

9 8.Questions to CSPI (2) - Why does BOJ aggregate all service price indexes to obtain overall index “ All Items ” of CSPI as well as that of CGPI? -  Because, to obtain economic indicator.

10 9.Analysis of CSPI - What we can see from CSPI? -  Price movements caused by the supply-demand conditions of labor market, etc.

11 10.Comparison with CGPI - Are there any different factors in CSPI price movements compared with CGPI? -  CGPI is influenced by the price movements of materials for production, such as oil, iron & steel, rather than CSPI.

12 11.Utility in analyzing CPI - Are CSPI and CGPI useful for forecasting the movements of CPI? -  Yes. But the impacts would differ depending on the items and the economic situation. We carefully watch the price movements of CSPI and CGPI, especially those which would much influence to the price movements of CPI, such as labor-intensive services/products, final goods.

13 FIN Merci beaucoup