Import price index

The import price index measures the average price trends for goods imported from abroad. In accordance with EU Regulation No. 1158/2005 on short term statistics, the price measurement relates to the import price (“cif price”, i.e. cost, insurance and freight price). It includes the foreign ex works price, the trade margin, and the insurance and transport costs between the production site abroad and the border to the country of importation, but does not contain import duties (turnover tax on imports, customs duties, currency adjustment amounts).

The import price index is an important instrument for measuring inflation imported from foreign markets and thus represents a key indicator for estimating the influences of prices from abroad on domestic inflation trends. In addition to general economic and business cycle analysis, the import price index is used by many market participants as a guide when monitoring the market. In addition, an import price index is used to deflate the external balance of goods and services in National Accounts.

The import price index currently comprises only 10 subindices which are reported to Eurostat for a European sample. An extended version of the import price index is designed to cover in principle all  product groups of CPA Sections A-E, with the indices being calculated at CPA three-digit level. This means that the important products for import from the Eurozone and non-Eurozone would then be included.

Since the project is still in the development phase, time series for the import price index will only become available at the beginning of 2009.