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Breadcrumb

  1. Home
  2. Methodology and quality
  3. ESMS metadata
  4. Purchasing power parity

Purchasing power parity

1. Contact
1.1. Contact organisation

Statistics Estonia

1.2. Contact organisation unit

Economic and Environmental Statistics Department

1.3. Contact name

Lauri Veski

1.4. Contact person function

Team Lead

1.5. Contact mail address

51 Tatari Str, 10134 Tallinn, Estonia

1.6. Contact email address

lauri.veski [at] stat.ee

1.7. Contact phone number

37254005504

2. Metadata update
2.1. Metadata last certified

27/03/2025

2.2. Metadata last update

27/03/2025

3. Statistical presentation
3.1. Data description

Prices of consumer and investment goods; bills of quantities (BOQ); data on gross domestic product (GDP), rents, wages and salaries, medical services and consumer price index (CPI)

3.2. Classification system

Classification of Individual Consumption According to Purpose (ECOICOP5)

3.3. Sector coverage

Purchasing power parities (PPPs) are calculated for gross domestic product (GDP) and its various sub-aggregates on the expenditure side of national accounts.

3.4. Statistical concepts and definitions

Purchasing power parities (PPPs) may be defined as currency converters or as spatial price deflators. Thus, the PPPs can be used as currency conversion rates to convert expenditures expressed in national currencies into an artificial common currency, eliminating price level differences between countries.

3.5. Statistical unit

Estonia as a participant country

3.6. Statistical population

The expenditure side of national accounts

FRAME

Not applicable

3.7. Reference area

Estonia as a whole

3.8. Time coverage

1993, 1996, 1999–…

3.9. Base period

Not applicable

4. Unit of measure

Purchasing power parities (PPP) can be interpreted as the exchange rates of national currencies against the purchasing power standard (PPS). They express the number of national currency units per PPS.

5. Reference period

Year

6. Institutional mandate
6.1. Legal acts and other agreements

DIRECTLY APPLICABLE LEGAL ACTS

Regulation (EC) No 1445/2007 of the European Parliament and of the Council of 11 December 2007 establishing common rules for the provision of basic information on Purchasing Power Parities and for their calculation and dissemination

Commission Regulation (EU) No 193/2011 of 28 February 2011 implementing Regulation (EC) No 1445/2007 of the European Parliament and of the Council as regards the system of quality control used for Purchasing Power Parities

COMMISSION REGULATION (EU) 2015/1163 of 15 July 2015 implementing Regulation (EC) No 1445/2007 of the European Parliament and of the Council as regards the list of basic headings used for Purchasing Power Parities (Text with EEA relevance)

OTHER LEGAL ACTS

Not available

OTHER AGREEMENTS

Not available

7. Confidentiality
7.1. Confidentiality - policy

The dissemination of data collected for the purpose of producing official statistics is guided by the requirements provided for in § 32, § 34, § 35, § 38 of the Official Statistics Act.

7.2. Confidentiality - data treatment

The dissemination of data collected for the production of official statistics is based on the requirements laid down in §§ 34 and 35 of the Official Statistics Act.

The principles for treatment of confidential data can be found here.

8. Release policy
8.1. Release calendar

Not applicable

8.2. Release calendar access

Not applicable

8.3. User access

Not applicable

9. Frequency of dissemination

Annual

10. Accessibility and clarity
10.1. News release

Not published

10.2. Publications

Not published

10.3. Online database

Not published

10.4. Microdata access

The dissemination of data collected for the purpose of producing official statistics is guided by the requirements provided for in § 33, § 34, § 35, § 36, § 38 of the Official Statistics Act. Access to microdata and anonymisation of microdata are regulated by Statistics Estonia’s procedure for dissemination of confidential data for scientific purposes.

10.5. Other

The data are submitted to Eurostat. The data are published in June and December in accordance with Eurostat’s release calendar.

10.6. Documentation on methodology

EUROSTAT-OECD Methodological Manual on Purchasing Power Parities (PPPs). Eurostat, OECD (2012)

http://www.oecd.org/std/prices-ppp/eurostat-oecdmethodologicalmanualonpurchasingpowerparitiesppps.htm

http://www.oecd.org/std/prices-ppp/PPP%20manual%20revised%202012.pdf

10.7. Quality documentation

Commission Regulation (EU) No 193/2011 of 28 February 2011 implementing Regulation (EC) No 1445/2007 of the European Parliament and of the Council as regards the system of quality control used for Purchasing Power Parities

11. Quality management
11.1. Quality assurance

To assure the quality of processes and products, Statistics Estonia applies the EFQM Excellence Model, the European Statistics Code of Practice and the Quality Assurance Framework of the European Statistical System (ESS QAF). Statistics Estonia is also guided by the requirements in § 7. “Principles and quality criteria of producing official statistics” of the Official Statistics Act.

11.2. Quality assessment

Detailed reviews of national practices should be undertaken by Eurostat in cooperation with each participating national statistics institute. This system of quality assessment has been implemented.

12. Relevance
12.1. User needs

Ministry of Finance

12.2. User satisfaction

Since 1996, Statistics Estonia has conducted reputation and user satisfaction surveys. All results are available on the website of Statistics Estonia in the section User surveys.

12.3. Completeness

All indicators are calculated and published for all the participating countries.

13. Accuracy and reliability
13.1. Overall accuracy

The precision of purchasing power parities (PPPs) increases with the level of aggregation.

13.2. Sampling error

Not applicable

13.3. Non-sampling error

Not measured

14. Timeliness and punctuality
14.1. Timeliness

Preliminary data are published 180 days after the end of the reference year (T + 180).

Preliminary results incorporating all new price and expenditure data for the year are published 365 days after the end of the reference year (T + 365).

Revised preliminary results incorporating the most recent expenditure estimates are published 730 days after the end of the reference year (T + 730).

Final results (no further updates, even if the state revises its national accounts estimates) are published 1,095 days after the end of the reference year (T + 1,095).

14.2. Punctuality

Purchasing power parities (PPPs) are published by Eurostat in June and December. The exact publication date is determined a few months in advance.

15. Coherence and comparability
15.1. Comparability - geographical

Purchasing power parities (PPPs) are used to calculate spatial price level indicators, and the comparability of results between countries is presumably very good.

15.2. Comparability - over time

Indicators calculated using purchasing power parities (PPPs) are primarily suitable for comparisons of geographical locations at a given point in time.

15.3. Coherence - cross domain

Purchasing power parities (PPPs) and the derived indicators are accessible from two domains in the Eurostat dissemination database: the PPP domain and the national accounts domain. The PPPs at the level of gross domestic product (GDP) are identical in the two domains. The expenditure data in the PPP domain is updated twice a year (in June and December). The data in the national accounts domain is updated continually as countries provide revised national accounts data. For this reason, the national accounts domain provides the most up-to-date indicators of GDP and GDP per capita in PPS.

15.4. Coherence - internal

Not applicable

16. Cost and burden

17. Data revision
17.1. Data revision - policy

The data revision policy and notification of corrections are described in the section Principles of dissemination of official statistics of the website of Statistics Estonia.

17.2. Data revision - practice

The indicators based on purchasing power parities (PPPs) for a year (t) are published in four stages:

- after t + 6 months: first preliminary results;

- after t + 12 months: preliminary results, incorporating all new price and expenditure data for the year (t);

- after t + 24 months: revised preliminary results, incorporating the most recent expenditure estimates;

- after t + 36 months: final results for the year (t). These results are final, meaning that there will be no further updates, even if the state revises its national accounts estimates.

18. Statistical processing
18.1. Source data

SURVEY DATA

The number of objects in the population depends on the reference year. Based on the methodology of the European comparison programme, the part of consumer goods has been divided over three years, and two surveys are done each year – in spring and autumn. The investment goods survey takes place every other year. In construction, the number of partially or fully evaluated projects changes every year. Right before the beginning of the survey, Eurostat sends the final list of objects to be evaluated for the purpose of the survey.

ADMINISTRATIVE DATA

Not used

DATA FROM OTHER STATISTICAL ACTIVITIES

Data from statistical activities 20407 “Consumer Price Index”, 21401 “National accounts (annual)”, 21102 “Hourly earnings of male and female employees” and 21106 “Labour cost index” are used.

18.2. Frequency of data collection

Annual

18.3. Data collection

Statistics Estonia collects data by direct survey or phone interviews.

18.4. Data validation

The validation of input data is an interactive process between Statistics Estonia and Eurostat.

18.5. Data compilation

The calculation of purchasing power parities (PPPs) is undertaken by Eurostat in three stages.

18.6. Adjustment

The data is revised by Eurostat.

19. Comments

Not available

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