The Services Producer Price Index (SPPI), formerly the Corporate Services Price Index (CSPI), is constructed from a statutory quarterly survey. The SPPI's are primarily a suite of individual price indices that provide information on price change for a limited range of service industries. Each SPPI captures quarterly changes in the price received for services provided by UK businesses to other UK businesses and Government. These individual price indices are also aggregated together to create a 'service industry' SPPI with limited coverage (it does not provide full coverage of the 'service sector').
These National Statistics are produced to high professional standards and released according to the arrangements approved by the UK Statistics Authority.
In the second quarter of 2011, movements in the net sector aggregate of selected services producer price index were as follows:
12 month inflation rose 2.4 per cent, compared with a rise of 2.7 per cent in both the first quarter of 2011 and the fourth quarter of 2010.
Between the first and second quarter of 2011 the net sector aggregate services producer price index rose 0.9 per cent, mainly reflecting price increases in advertising placement, sewerage services and freight transport by road partially offset by a price fall in freight forwarding.
|12 month||3 month|
The aggregate SPPI is an aggregate of the individual industry level SPPI's published in this Statistical Bulletin. It does not provide full coverage of the service sector.
Aggregate indices exclude Financial Intermediation (Banks)
|Freight Transport by Road||0.8|
|Sorted Recovered Materials Services||4.1|
|Licensed Hotels and Motels||5.2|
|National Post / Parcelforce||-3.4|
|Freight Transport by Road||3.6|
|Sorted Recovered Materials Services||30.8|
|Maintenance of Motor Vehicles||5.0|
The largest upward effects to the net aggregate services producer price index over the past 12 months came from:
freight transport by road,
sorted recovered materials services,
Other notable upward contributions to the 12 month change came from: sewerage services, advertising placement and maintenance of motor vehicles
These upward movements were partially offset by downward contributions from business telecoms and security services.
In the second quarter of 2011, movements in the gross sector aggregate of selected services producer price index were as follows:
12 month inflation rose 1.9 per cent, compared with a rise of 2.4 per cent in the first quarter of 2011. This is the lowest annual rate since the first quarter of 2010, when the index also rose by 1.9 per cent. The last time the annual rate was lower was in quarter four 2009 (0.6 per cent).
Between the first and second quarter of 2011 the gross sector aggregate services producer price index rose 0.6 per cent.
A development project to increase the industrial coverage of the SPPI has been in place since 2009. Recently the project has focussed on the following industries:
Architecture and Engineering,
An article summarising the findings from this recent stage of the project will be published on Friday 26 August 2011, including experimental new price indices for these industries.
The article will be on the SPPI section of the ONS website.
Link to Summary Quality Report
A Summary Quality Report for the SPPI (139.3 Kb Pdf) can be found on the ONS website. This report describes, in detail, the intended uses of the statistics presented in this Statistical Bulletin, their general quality and the methods used to produce them
Implementation of SIC 2007 in ONS: Update on SPPI
Services Producer Prices has implemented the change to the Standard Industrial Classification 2007 (SIC 2007). The most significant change to SPPI involves the reclassification of ‘recovered secondary raw materials’ and ‘publishing’. These are no longer classified in the manufacturing sector, but are now classified under services.
Further information on the changes and impact of the SIC 2007 on SPPI can be found in an article in Economic & Labour Market Review (84.1 Kb Pdf) .
The SPPI index for sorted recovered materials services (38.32) uses the measurement of price change for recovered material ‘products’ as a proxy. Under the SIC2007 project these recovered material products, along with publishing services, were reclassified out of the manufacturing industry and into SPPI.
Relevance to users
On 10 May 2010, the UK Statistics Authority Assessment team accredited the Services Producer Price Indices (SPPI) as a new National Statistic. The United Kingdom Statistics Authority has designated these statistics as National Statistics, in accordance with the Statistics and Registration Service Act 2007 and signifying compliance with the Code of Practice for Official Statistics.
Designation can be broadly interpreted to mean that the statistics:
meet identified user needs;
are well explained and readily accessible;
are produced according to sound methods, and
are managed impartially and objectively in the public interest.
Once statistics have been designated as National Statistics it is a statutory requirement that the Code of Practice shall continue to be observed.
Further information regarding the UK Statistics Authority assessment (Assessment Report 25) can be found on their website.
Detailed information relating to the published SPPIs and the development of the price index can be accessed on the ONS website.
Property rental payments – Investment Property Databank (IPD),
Business telecommunications – Office of Communications (Ofcom),
Financial Intermediation (Banks) – Bank of England (BoE),
Sewerage services – Office of Water Services (Ofwat),
Business rail fares – Office of Rail Regulation (ORR),
National post parcels - Parcelforce.
Copyright and reproduction
© Crown copyright 2011
Under the terms of the Open Government Licence and UK Government Licensing Framework, anyone wishing to use or re-use ONS material, whether commercially or privately, may do so freely without a specific application for a licence, subject to the conditions of the OGL and the Framework.
For further information, contact the Office of Public Sector Information, Crown Copyright Licensing and Public Sector Information, Kew, Richmond, Surrey, TW9 4DU.
Tel: +44 (0)20 8876 3444
Details of the policy governing the release of new data are available by visiting www.statisticsauthority.gov.uk/assessment/code-of-practice/index.html or from the Media Relations Office email: email@example.com
|Kevin Buckthought||+44 (0)1633 456628||Pricesfirstname.lastname@example.org|