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Home > Statistics > Outline of Statistics and Statistical Release Schedule > Notices of Changes and Corrections 1999 > Revision of the Corporate Service Price Index (CSPI) to 1995 base
December 7, 1999
Bank of Japan
Research and Statistics Department
Click on ntcspi01.pdf (209KB) to download the full text.
The Corporate Service Price Index (CSPI) focuses on the prices of services traded among corporations, which has been published since January 1991 with a retroactive index from January 1985. The CSPI can be regarded as a counterpart of the Wholesale Price Index (WPI), which focuses on goods traded among corporations.
The base year for both index and weight calculation has been updated from 1990 to 1995 to incorporate the changes in Japan's economic structure. Groupings and selection of items have also been revised to enhance the accuracy of the indexes.
The revision is conducted once every five years. This is the second revision for the CSPI, following the revision from the 1985 base to the 1990 base, which was done in 1994.
The structure of the CSPI and the base data for its weight calculation, which generally correspond to the values of the intermediate transactions in the Input-Output Tables (I-O Tables) published by the Management and Coordination Agency, are the same as before.
In reviewing the groupings and the selection of items, we have made a special effort to capture the appearance of new services and the diversification of existing services, which are brought about by the recent deregulations and technological innovations. The groupings and items have further expanded. As the variance of price movements within the same or similar services is becoming larger than before, we have also revised the price data to enhance the accuracy of the indexes.
(a) In the telecommunications field, where deregulations and technological innovations have brought about new services and diversified existing services rapidly, "ISDN (Integrated Services Digital Network)," "PHS (Personal Handyphone System) services" and "access charges" are newly selected. "International telex" is abolished because of the decrease in transaction value.
(b) In the miscellaneous services field, nine items as professional services, five of which are the result of the division of two existing items, are newly selected. These include "certified administrative procedures specialist services," "certified social insurance and labor specialist services" and "attorney services," etc. As other services, "linen supply" is also selected.
(c) In the financial services field, "underwriting services" and "trust business services" are newly selected by using the Consumer Price Index (CPI) as an inflator.(Note) "Securities issuance and related services" is also selected.
(a) To cope with the proliferation of discount pricing systems in telecommunications services, various type of discount prices are adopted for items such as "domestic fixed telephone services" and "cellular phone services."
(b) Adoption of average prices is expanded to cope with cases when it is difficult to select a representative service for the price data.
Average prices are newly adopted for items such as "securities issuance and related services," "television commercials" and "temporary employment services."
(c) In the items of "fire insurance" and "architectural design and contract administration services," the inflator is changed from the Construction Cost Deflators published by the Ministry of Construction to the Building Construction Cost Index published by the Construction Research Institute, because the latter is more suitable for both services.
(a) The treatment of the movement of foreign exchange rates in converting foreign currency based price indexes to yen based price indexes for items such as "ocean trampers" and "ocean tankers" is changed.
Previsouly, if there were no transactions for a certain price data contracted in foreign currency in a certain survey period, then not only the "contract currency basis" indexes but also the foreign exchange rates (therefore the "yen basis" indexes) were treated as unchanged. The new treatment is that the movement of foreign exchange rates is always reflected in the conversion regardless of the existence of transactions during each survey period. As a result, even if the index for "contract currency basis" does not change, the index for "yen basis" changes because of the movement of foreign exchange rates during the survey period.
In the Wholesale Price Index (WPI) and the Input-Output Price Indexes of Manufacturing Industry by Sector (IOPI), the same method will be adopted from the data for January 2000 which will be published February 2000. (Note)
(b) Previously, the weights of services which were not selected as items in the CSPI within "other business services" and "other personal services" were imputed to "miscellaneous services" (named "other services" in the 1990 base index) and "leasing and rental." (Note) In the revised index, they are imputed only to "miscellaneous services."
This revision will also be adopted in the WPI and the IOPI.