Price index on Producer Durables

This index is based on the net investor price, which is the figure that a company has to spend on an investment plan (acquisition of machinery, equipment, etc.) after deduction of the terms and conditions- of transport to the agreed destination within the industry, plus any costs for transfer to the site, installation costs, etc., in other words the “actual purchase price” (cost price without VAT).

The capital goods price index has been an essential tool for National Accounts since the early 1980s for deflating gross fixed capital formation.

The results of the price index for capital investments have the following specified uses:

  • specific price indices to guide companies when negotiating offer prices
  • calculation factor for price changes
  • for capital cost reports by judicially specialised experts
  • for valorisation (indexation clauses)
  • specific or general indicator of inflation
  • deflators for measuring changes in price and volume for gross fixed capital formation (for National Accounts).