Monthly Report on Producer Price Index in Bosnia and Herzegovina Reference Metadata in Euro SDMX Metadata Structure Agency for Statistics of Bosnia and Herzegovina
	1. Contact
	2. Metadata update
	3. Statistical presentation
	4. Unit of measure
	5. Reference period
	6. Institutional mandate
	7. Confidentiality
	8. Release policy
	9.  Frequency of dissemination
	10. Accessibility and clarity
	11. Quality management
	12. Relevance
	13. Accuracy and reliability
	14. Timeliness and punctuality
	15. Coherence and comparability
	16. Cost and burden
	17. Data revision
	18. Statistical processing
	19. Comment
	1. Contact
	1.1. Contact organisation	AGENCY FOR STATISTICS OF BOSNIA AND HERZEGOVINA
	1.2. Contact organisation unit	Sector for Economic Statistics - Department for Price Statistics
	1.3. Contact name	a) Rubina Ligata                                    b) Gorčin Stojanović
	1.4. Contact person function	a) Head of Department for Price Statistics     b) Assistant
	1.5. Contact mail address	Zelenih beretki 26, 71 000, Sarajevo
	1.6. Contact email address	rubina.ligata@bhas.gov.ba gorcin.stojanovic@bhas.gov.ba
	1.7. Contact phone number	+387 33 911 966
	1.8. Contact fax number	+387 33 220 622
	2. Metadata update
	2.1. Metadata last certified	15.09.2021
	2.2. Metadata last posted	31.10.2017
	2.3. Metadata last update	15.09.2021
	3. Statistical presentation
	3.1. Data description	Producer price index in Bosnia and Herzegovina is a short-term statistical indicator that shows a dynamics of change in prices of domestic producers of  products. Producer price index is primarily intended to serve as a measure of general inflation. It can also serve as the indicator of macro economical performances. escalator for price adjustments in long-term contracts, deflator of nominal values of output or intermediate consumption in the realised volume of output and deflator of nominal value of capital expenditures in national accounts and as a important tool in creating monetary and fiscal policies as well as for making informed economic decisions in private sector.
	3.2. Classification system	Industry classification (General Industrial Classification of Economic activities within the European Union-NACE) groups producer units according to their main activity, based on output criterion. At the beginning of the project, NACE classification was used, version  1.1. From 2010, NACE 2 classification was used. The products are classified by the national version of Classification of Product by Activity (PRODCOM-Eurostat Classification of Product by Activity).
	3.3. Sector coverage	Producer price index in Bosnia and Herzegovina is limited to the industrial activities of B. Mining and quarrying, C. Manufacturing, D. Electricity, gas, steam and hot water supply, and E. Water supply; sewerage, waste management and remediation activities.
	3.4. Statistical concepts and definitons	Producer price index in Bosnia and Herzegovina is a short-term statistical indicator that shows a dynamics of change in prices of domestic producers of  products.  Producer price index is primarily intended to serve as the measure of general inflation.
	3.5. Statistical unit	The observation unit in this survey is, in accordance with the basic concepts of SNA 1993, an individual, homogeneous, manufacturing plant or enterprise, which means that individual subsidiaries, sales units or administrative units are not included, due to the fact that these parts are not able to independently make decisions, perform all production operations or calculate prices independently.
	3.6. Statistical population	Producer price index in Bosnia and Herzegovina is also classified by product and industrial divisions, and includes domestic and non-domestic market divided into euro and non-euro zone. The prices observed  in this survey represent actual transaction prices that show the producer's income from goods sold to actual customers. These are not catalog prices or prices from a pricelist, as they are intended to reflect all possible discounts, rebates, taxes and other charges that may be included in the prices. Therefore, the subject of the observation are prices recorded at the time of the transaction, not the price from the time of order submission because large orders can take a lot of time between the order moment and the moment of delivery of the goods.
	3.7. Reference area	Data refer to Bosnia and Herzegovina.
	3.8 Time coverage	2007-ongoing.
	3.9. Base period	2015
	4. Unit of measure	Units of measure used: Index (index numbers), percent of change in comparison with the same month of previous year (rate) and percent of change in comparison with the previous month (rate).
	5. Reference period	Month (indices and rates).
	6. Institutional mandate
	6.1. Legal acts and other agreements	• Law on statistics of Bosnia and Herzegovina, • Multiannual statistical programmes and work plans of Bosnia and Herzegovina, • Methodology of the Producer price index in BiH, • International recommendations and manuals (Eurostat, IMF, UN).
	6.2. Data sharing	Agency for Statistics of BiH as a producer of official statistics is an institution authorised for the production of producer price index.
	7. Confidentiality
	7.1. Confidentiality-policy	Confidentiality of statistical data is regulated by law and the personnel conducting statistical surveys has the legal obligation to protect confidentiality. Law on Statistics of BiH (Off. Gazette of BiH 26/04 and 42/04 - Chapter XI - Article 23.-29.) establishes the principle of confidentiality as one of the main principles. Agency for statistics of BiH distributes statistics in line with statistical principles of the European Statistics Code of Practice and in particular with the principle of statistical confidentiality.
	7.2. Confidentiality-data treatment	The document "Rules on the Protection of Statistical Data in the Agency for Statistics" lists procedures for ensuring confidentiality during collection, processing and dissemination - including protocols for securing individual data being accessed, rules for defining confidential cells in output tables and procedures for the detection and prevention of subsequent disclosures as well as access to microdata for research purposes. By signing the Memorandum of Understanding with Agency for statistics of Bosnia and Herzegovina, data users having access to individual data are obliged to: treat individual anonymized data as confidential in accordance with the rules, regulations and procedures, ensure adequate protection of individual data in accordance with the rules, regulations and procedures, protect the transfer of microdata and destroy the media where the data are, as well as the accompanying documentation, five days after the publication of the results.
	8. Release policy
	8.1. Release calendar	At the end of December every year, BHAS announces the Release Calendar with the precise date and time of publication of the statistics for the following year.
	8.2. Release calendar access	The Calendar is placed on:
		https://bhas.gov.ba/Calendar/
	8.3. User access	The data is disseminated to all users through the official web site of Agency for statistics of Bosnia and Herzegovina, at the same time new release is also e-mailed to the media and to the all users from user database:
		https://bhas.gov.ba
	9.  Frequency of dissemination	Producer price index is disseminated on a monthly basis.
	10. Accessibility and clarity
	10.1. News release	Monthly release on Producer price indices in BiH, as well as the Thematic bulletin, are available at web site of the Agency for Statistics of BiH:
		https://bhas.gov.ba/Calendar/Category/10
	10.2. Publications	Thematic bulletin "Producer price indices in BiH" and the publication "BiH in figures"- section Prices:
		https://bhas.gov.ba/Calendar/Category/10
		https://bhas.gov.ba/data/Publikacije/Bilteni/2021/NUM_00_2020_TB_1_EN.pdf
	10.3. On-line database	At web site of the Agency for Statistics of BiH there are releases and thematic bulletin, published since  2007 up to date, as well as the data time series that can be downloaded in excel format.
		https://bhas.gov.ba/Calendar/Category/10
	10.4. Micro-data access	/
	10.5. Other	/
	10.6. Documentation on methodology	Methodological document: Producer price indices in BiH.
	10.7. Quality documentation	/
	11. Quality management
	11.1. Quality assurance	Quality Management Policy as an element of the system of quality management generally is related to the following components: product quality of the process as well as other elements of the system for quality management, such as planning and controls. To assure the quality of processes and products, Agency for statistics is the implementation of the Quality management model (TQM) done using the CAF tool. The Common Assessment Framework (CAF) is a total quality management tool developed by the public sector for the public sector, inspired by the Excellence Model of the European Foundation for Quality Management (EFQM). Process of self-assessment identifies and monitors all organization results, provides feedback on organizational capacity and results of policy and planning processes. The scoring tool for self-assessment has 9 key indicators and 28 criteria based on which it is possible to measure management level achieved and determine which are the critical points for improvements in future. It looks at the organization from different angles at the same time: the holistic approach to organization performance analysis. BHAS use „The CAF guidelines for implementation “and a 10-step implementation plan developed to help organizations use it in the most efficient and effective way. Process of self-assessment identifies and monitors all-important organizational results and provides feedback on organizational capacities and results of policy and planning processes. This model of quality monitoring requires the development of a standardized questionnaire that includes all principles in the model. Agency for statistics of BiH is committed to quality assurance in the production of official statistics based on Article 19, Paragraph (1) “Law of Statistics BIH, Official Gazette of BiH 26/04; 42/04”. In order to ensure the quality of statistics Agency developed a documented Policy and programme for quality management which is available on web site:
		https://bhas.gov.ba/Content/Read/92?title=Kvalitet
	11.2. Quality assessments	The quality of official statistics’ products (main indicators/statistics) are regularly assessed in quality reports through the calculation of quality indicators. On other hand, processes included in statistical production are assessed by specific process quality indicators in quality reports and additionally through Generic Statistical Business Process Model (GSBPM) documentation.
	12. Relevance
	12.1. User needs	Key users of the statistical survey data are:  Ministry of Foreign Trade and Economic Relations of BiH, BiH Directorate for Economic Planning, Central bank of BiH, Eurostat,  World bank, IMF, and Statistical division of UN (UNSD), embassies and consular representations of foreign countries. Users of the data are also business entities-enterprises media and general public.  Internal user is a statistics of national accounts for the purpose of production of gross domestic product.
	12.2. User satisfaction	One of the key elements in securing the quality of statistical data is monitoring the users’ satisfaction. The results of the User Satisfaction Survey are available on:
		https://bhas.gov.ba/data/Dokumenti/Kvalitet/AZK2020_BS.pdf
	12.3. Completeness	Data completeness  rate is 100%. For this statistic all key indicators, which are required by international standards, are calculated.
	13. Accuracy and reliability
	13.1. Overall accuracy	/
	13.2. Sampling error	/
	13.3. Non -sampling error	Coverage error: The producer price survey in Bosnia and Herzegovina is based on a sample of products and their producers, i. e. production units located on the territory of Bosnia and Herzegovina, which market their products on domestic or non-domestic markets (euro and non-euro zone). The design of the sample was carried out in two stages: In the first stage, respondents were selected (production units) in accordance with the data obtained by the Annual Survey on Industry (IND-21), after which in the second stage specific products to be observed were selected. Product identification was carried out according to the national version of PRODCOM nomenclature of products (NIP BIH) in a way that a survey was conducted based on the data on the production of individual enterprises which were provided the forms in which, each enterprise defined the items from its assortment for the mentioned products. Each producer in the sample was given the opportunity to harmonise the definition of the pre-selected product with its production process in order to facilitate the process of filling-in the delivered forms by the respondent (producer). Sample selection is done once a year (usually in December) according to the obtained data on increase or loss of importance of certain products and producers. For ensuring consistency of the monitoring of price change, the pattern does not change during the year. Samples of producers and products in Bosnia and Herzegovina have been selected by the entity statistical offices, for their territory, using the appropriate IND-21 data conducted by their offices and the selection threshold for entry into the sample: for the Federal Institute of Statistics, enterprises with 5 and more employees and more than 100,000 KM of annual turnover, and for the Republika Srpska Institute of Statistics 10 and more employees and 50,000 KM of sales. The sample for the territory of Brčko District of BiH was made in the branch of the Agency for Statistics of BiH, with partially different criteria due to the fact that the production of certain types of products on this territory is specific and unique in BiH.
		Measurement error: Quality plays a key role in the process of calculating the index and determining the accuracy of the data obtained on the changes in prices on the market. Data editing includes checking data quality in terms of completeness, coherence and continuity of basic information obtained from reporting units, and presents one of the most important preparatory phases of calculating and publishing the index. The first phase of the preparation for the entry is a logical check of submitted data, which takes place in the entity statistical offices and branch offices of BHAS in Brčko District. This verification relates to checking whether the forms have been submitted in a timely manner, whether they are fully filled in according to the instructions, whether the information is coherent and whether the price has been submitted in accordance with the previously submitted prices for those items. If a form does not pass this stage, the person in charge of the control contact the respondent. After this phase comes the stage of the data entry of the submitted prices and related information from the form in the software application which also contains certain logical controls, by which the submitted data are additionally automatically filtered. The application has predefined change intervals of the entered prices and automatically recognizes out of the range (outlier) prices. These outlier prices are re-checked by staff by contacting the reporting unit, comparing it with similar products or producers, or analyzing time series depending on which product or producer is in question. Non-response error: If it is found that the reporting unit does not submit the forms for a longer period of time, it is necessary to determine the reason why this is so. Some reasons for the non-response may be: the transfer of production outside the territory of BiH, production discontinuity, refusal of cooperation, closure of the enterprise or disrespect of the importance of statistics. Once the reason is found, it is necessary to find an adequate replacement for the company that will provide prices for similar items. If it is determined that for a particular item a longer period of time (longer than three months) a form is submitted with the indication "there was no sale" it is necessary to contact the reporting unit to determine if the item is no longer representative or the company has stopped producing it. If so, then it is also necessary to find the appropriate replacement in cooperation with the reporting unit. In order to maintain a fixed sample, all replacements are made in December of the current year to collect the price for the next year. Unit non-response rate:  Some reasons for the non-response may be: the transfer of production outside the territory of BiH, production discontinuity, refusal of cooperation, closure of the enterprise or disrespect of the importance of statistics. After determining the cause, it is necessary to find appropriate replacement for the enterprise which will submit prices for similar items.
	14. Timeliness and punctuality
	14.1. Timeliness	Time lag - first result: T+20.  A full set of indices is published each month, on average 20 days after the reference period due to a complicated procedure of data delivery between the entity offices and BHAS. We do not publish preliminary data. Time lag - final result: Results of the first release are final data at the same time, therefore the timeliness of the final results is equal to timeliness of the first release.
	14.2. Punctuality	Punctuality rate of the data release is 12/(12+0) = 1.0 or 100 %. All 12 results of the monthly survey of price statistics were published on the date announced in the Release calendar. Punctuality - delivery and publication: T+0. There is no discrepancy between announced and real date of publishing (according to the Release calendar), considering that the published calendar is tailored to the speed of data delivery and data processing.
	15. Coherence and comparability
	15.1. Comparability-geographical	Despite some differences in the methodologies used by countries, PPI can be used for international comparisons of inflation rates. However, it is primarily used at the national level.
	15.2. Comparability-over time	Data on producer price indices have been produced and published since 2007 in a monthly dynamics. Length of comparable time series: Data on producer price indices have been produced and published since 2007 in a monthly dynamics. Length of comparable time series, considering the monthly time series, is 14x12 = 168 (months).
	15.3. Coherence-cross domain	/
	15.4. Coherence-internal	/
	16. Cost and burden	Considering the paper format of questionnaires filled in by business entities in several copies and delivered monthly to the entity offices and considering that there is several similar surveys that request same data for different statistical purposes, the respondent burden is not negligible, while costs include costs of preparation and printing of large quantity of forms.
	17. Data revision
	17.1. Data revision-policy	The Agency for statistics of Bosnia and Herzegovina does not have an official revision policy document.
	17.2. Data revision-practice	Data on indices are published monthly as final data for previous month. Data are not subject of revisions.
	18. Statistical processing
	18.1. Source data	Survey on producer price index in Bosnia and Herzegovina is based on the sample of products and their producers or production units located in the territory of Bosnia and Herzegovina, which market their products on domestic or non-domestic market (euro and non-euro zone). The observation unit in this survey is, in accordance with the basic concepts of SNA 1993, an individual, homogeneous, manufacturing plant or enterprise, which means that individual subsidiaries, sales units or administrative units are not included, due to the fact that these parts are not able to independently make decisions, perform all production operations or calculate prices independently. Purchasing price of the producer of industrial products on the domestic market is the price at which the producer sells the products to regular customers on the domestic market in the largest quantities, franked on a wagon (truck) at the site of the producer. This price includes regressions if the producer realizes them, and excludes trade rebates and discounts that the seller approves to the buyer, VAT and excise. The price of the product for the non-domestic market is the price at national border - FOB (free on board), which means that the seller pays the freight transport to the port of shipment and the costs of loading and the buyer pays transportation, insurance, unloading costs and transportation from the port of destination to the final destination of use . The aforementioned price excludes VAT and similar taxes directly linked to turnover, as well as all taxes and charges on the products and services that enterprises pay until possible subsidies on products are added.
	18.2. Frequency of data collection	All prices are collected monthly in the collection period from the 21 st of the month until the 20th of the month. The form is distributed to the manufacturing enterprises that fill it up and send it to the central offices of the entity statistical institutions for data processing. After the data processing, entity offices deliver calculated indices to the Agency for Statistics of BiH for their aggregation for the level of Bosnia and Herzegovina.
	18.3. Data collection	The data is collected by direct filling in of paper forms by the business entity covered by the survey. The form consists of a pre-filled section containing data that identify the survey respondent (according to the data from the register), data on specific products which prices are observed and the manual for filling in the form. In addition, the form contains a section that is filled by the reporting unit (eEnterprise) and refers to the prices and necessary notes related to their change. Thus, the enterprise for the selected items defined by the description, unit of measurement and quantity, fills in the prices at which the item is sold on a domestic or non-domestic market (euro or non-euro zone) which is called price collection according to concrete specifications (specification pricing).
	18.4. Data validation	Quality plays a key role in the process of calculating the index and determining the accuracy of the data obtained on the changes in prices on the observed market. Data editing includes checking data quality in terms of completeness, coherence and continuity of basic information obtained from reporting units, and presents one of the most important preparatory phases of calculating and publishing the index. The first phase of the preparation for the entry is a logical check of submitted data, which takes place in the entity statistical offices and branch offices of BHAS in Brčko District. This verification relates to checking whether the forms have been submitted in a timely manner, whether they are fully filled in according to the instructions, whether the information is coherent and whether the price has been submitted in accordance with the previously submitted prices for those items. If a form does not pass this stage, the person in charge of the control contact the respondent. After this phase comes the phase of the data entry of the submitted prices and related information from the form in the software application which also contains certain logical controls, by which the submitted data are additionally automatically filtered. The application has predefined change intervals of the entered prices and automatically recognizes out of the range (outlier) prices. These outlier prices are re-checked by staff by contacting the reporting unit, comparing it with similar products or producers, or analyzing time series depending on which product or producer is in question. If it is found that the reporting unit does not submit the forms for a longer period of time, it is necessary to determine the reason why this is so. Some reasons for the non-response may be: the transfer of production outside the territory of BiH, production discontinuity, refusal of cooperation, closure of the enterprise or disrespect of the importance of statistics. Once the reason is found, it is necessary to find an adequate replacement for the company that will provide prices for similar items. If it is determined that for a particular item a longer period of time (longer than three months) a form is submitted with the indication "there was no sale" it is necessary to contact the reporting unit to determine if the item is no longer representative or the company has stopped producing it. If so, then it is also necessary to find the appropriate replacement in cooperation with the reporting unit. In order to maintain a fixed sample, all replacements are made in December of the current year to collect the price for the next year. After these controls, data processing is made, as well as imputation of missing data and calculation of indices for the level of entities and Brčko District. After data processing, data on elementary indices are delivered to the Agency for Statistics of Bosnia and Herzegovina which performs a control of data consistency between entities and prepares calculation and publishing of indices for the territory of Bosnia and Herzegovina.
	18.5. Data compilation	The producer price index is a weighted arithmetic mean of the simple geometric means, i.e. producer price indices are the aggregate Laspeyres type of indices based on the Jevon approach. The first step in calculating the index is to calculate the relation between the prices, i. e. the ratio between the current and the base price. Since it is a chain index, the base price is always that of December of the previous year. After calculating these ratios for each item falling under one product, a simple geometric mean of the calculated ratios is calculated, since we do not have information about the relative share of each individual item to weight them. Furthermore, the indices are aggregated using the appropriate weights, i. e. the Laspayers formula. For the state index at every level, the indices are calculated by multiplying the index of that level obtained from entities with the participation of that entity in the state and their aggregation. In Bosnia and Herzegovina, the weights are specific because of the fact that the entity statistical offices and branch of BHAS are offices that calculate weights according to PRODCOM values for specific products and total turnover as a weight for enterprises (according to data from IND 21). After that, these weights are used to create a weighting structure at a state level, which means that state-level weights represent the participation of individual entities and Brčko District. Thus, at the state level, three weighting vectors are linked by a weighted arithmetic mean, based on the absolute values of the entity weights whereby the ratios of the weights are in fact the ratios of absolute values of the individual aggregate and the total value all the aggregates. So the sum of the state-level weighs is a total of the sum of the weights of two entities and Brčko District. At all levels, the hierarchical structure of classification of the products consists of six aggregates: LEVEL       AGGREGATE 8 digits     PRODUCT 4 digits     PRODCOM product 3 digits      NACE group 2 digits      SECTION 2 letters    SUBSECTOR 1 letter      SECTOR -------- TOTAL There is a rule that for each level of aggregation of the sum of weights is equal to 1, in addition, the total values of the sample and the total population must always be the same, i. e. if some enterprise or product is not selected in the sample then the value of its sales is redistributed to the sampled enterprises or products within the same level of aggregate using coefficients that the distribution depends upon. At the end, the weights are normalized by multiplying by 1000000. At the end of each year, the weights are aligned with the price changes of selected products and enterprises recorded in that year (December of the current year on December of the previous year), which are then used as weights for the next year in the calculation of the index. The mentioned weighting procedure refers to the calculation of the weights used in calculating the producer price index on domestic and non-domestic markets. The structure of the non-domestic market weights represents the relative share of sales in the euro and non-euro zone markets, while the weight for the total market represents a relative share of domestic and non-domestic markets.
	18.6. Adjustment	Statistical procedures for series adjustment (methods for seasonal adjustment) are not used. No seasonal adjustment is done.
	19. Comment	/