Indices Pro users

Below are some information dedicated to former users of Indices Pro.

A matching table (xls file - 344 kB) between Indices Pro series identifiers and BDM series identifiers is also available. This table will help you to find BDM series corresponding to Indices Pro series, in NAF rev.2 and in NAF rev.1.

1. What are the price indices for industry and services to business used for?

   These indices meet a variety of demands from:

   • Economic agents in the private sector (company managers, purchasing managers) and decision-makers in the public sector (local authorities, government departments) for contract indexation purposes, among others. The indices also provide entrepreneurs with information about purchase and sale price trends in their branch, thereby allowing them to appraise their own competitiveness on the markets.
   • The French official statistical service, to provide information about economic activity over the short and medium terms: on the one hand, the indices provide an insight into the business outlook, by providing monthly monitoring of prices on domestic and foreign markets at different stages in the production process; on the other hand, they are used by the national accountants as a deflator of the output from structural business statistics. In this way, the national accountants can distinguish between changes in the volume of activity and changes in price (“volume-price” breakdown) and ultimately determine trends in the volume of Gross Domestic Product.
   • The European Union, via the Eurostat European Statistical Office, within the framework of European Regulation n°1165/98 concerning short-term statistics. The European Central Bank (ECB) uses price indices notably for its Euro Zone indicators.
   • International organisations such as the IMF (International Monetary Fund) and the OECD (Organisation for Economic Cooperation and Development) for global economic monitoring.

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2. What is a producer price index?

   A producer price index for French industry or for services to business measures the monthly or quarterly change in the production of goods and services by French industrial or service companies, sold on a given market.

   A distinction is therefore made between:

   • the producer price index for services to business for the French market;
   • the French industrial producer price index for the French market;
   • the French industrial producer price index for foreign markets;
   • the French industrial producer price index for all markets (combination of the previous two indices);

   In more detail, prices are measured as follows:

   • At basic prices for industrial products and services to business destined for the French market (exclusive of VAT, exclusive of taxes on the products and without deducting any subsidies on the products), in accordance with European Regulation n°1165/98.
   • Also at Ex-Works prices (producer invoice) for industrial products destined for the French market (exclusive of VAT, including taxes on the products and after deduction of any subsidies on the products), notably for contract indexation purposes.
   • At Free On Board (FOB) prices for industrial products sold on foreign markets (valued at the French border, in accordance with European Regulation n°1165/98). The prices are converted into Euros and therefore include exchange effects. All exports are taken into account, whether intra-group or not.

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3. What is an import price index?

   An import price index for industrial products measures changes in the prices of goods and services produced by foreign industrial activities and sold on the French market.

   More precisely, these prices are converted into Euros and therefore include exchange effects. They are measured on a Cost, Insurance and Freight (CIF) basis, meaning at their value at the French border, excluding Customs duties and import taxes, in accordance with European Regulation n°1165/98. All imports are taken into account, whether intra-group or not.

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4. What is a resale price index?

   A resale price index for industrial products measures changes in the prices of industrial products that are imported and resold “as are” on the French market, at their resale price.

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5. What is a domestic supply price index?

   A domestic supply price index for industrial products measures the change in the prices of industrial products marketed in France, whatever their place of production. It is the result of the aggregation of the resale price indices for industrial products and the industrial producer price indices for the French market.
   

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6. What does the abbreviation IPPI mean?

   IPPI means Indice de Prix de Production et d'Importation (Import and Producer Price Index).
   

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7. What source does the information come from?

   The indices are calculated using monthly (or quarterly in some branches) prices for some 30,000 products collected from a representative sample of 5,400 companies through the mandatory Observation des Prix de l'Industrie et des Services aux Entreprises survey (OPISE, Observation of Prices in Industry and Services to Business).
   

   This survey is part of the annual statistical survey programme of the official statistical service examined by the Conseil national de l'information statistique (CNIS, National Council for Statistical information) and published in a ruling at the start of the year in the Official Journal.

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8. What does the abbreviation OPISE mean?

   OPISE means Prix de l'Industrie et des Services aux Entreprises (Observation of Prices in Industry and Services to Business).
   

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9. What is the field of the producer and import price indices?

   The field is defined in accordance with European Regulation n°1165/98.
   

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10. How long have import and producer price indices existed?

    The OPISE survey in its present form succeeded monitoring of wholesale prices that dated back as far as 1911. The scope of the survey has gradually been extended since the creation of the industrial sale price survey in 1977; priority was given first to quarterly and then monthly observation of the producer prices of industrial products manufactured in France and marketed on the French domestic market. The first industrial producer price indices for the French market date back to 1980; the whole of industry for the French market has been covered since the start of 1999.
    

    Coverage of the field has been developed gradually:

    • Industrial producer price indices for the French market have been observed since 1980 (under the term industrial sale price indices). In March 2009, the coverage rate reached 96%.
      
    • Observation of industrial producer price indices for foreign markets started in 2001. In March 2009, the coverage rate stood at 95.0%. Before measurements of transaction prices became available, changes in industrial producer price indices for foreign markets were evaluated by approximation using the unitary value indices for foreign trade.
      
    • Measurement of import prices for industrial products generally started in January 2005. In March 2009, the coverage rate stood at 93.0%. Before measurements of transaction prices became available, changes in import price indices for industrial products were evaluated by approximation using the unitary value indices for foreign trade (pdf file in french - 45 kB).

      Notice : Unitary value indices are prepared by INSEE on the basis of statistics in value and quantity (mass or number of units) supplied by the Direction générale des douanes et des droits indirects (General Customs and Excise Directorate).

    • Monitoring of producer prices for services to business was commenced in 1997 on a field of activities validated by the Conseil national de l'information statistique (CNIS, National Council for Statistical information). Since 2000, coverage of the field has gradually been extended.
      

    The coverage rates indicated here concern all those branches for which price indices are calculated monthly, including those for which data is not published, notably for reasons of statistical confidentiality. They are measured in relation to the field defined by the European regulation with a base year of 2005.
    

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11. On what level of detail are the price indices for industry and services to business expressed?

    Producer and import price indices have been expressed in the C.P.F. (Classification of French Products) Revision 2 of 2008 since March 2009.
    

    Producer price indices for the French market are often available on a more detailed classification level than the four-digit position of the C.P.F. as they are based on prices that are observed at a very fine level.
    

    Industrial producer price indices for foreign markets and import price indices for industrial products are available from the four-digit level of the C.P.F. They therefore make a distinction between trade within the Euro Zone and that outside it.
    

    The changes of base year and reference date were made at the same time: the price indices have been expressed in C.P.F. Revision 2 of 2008, base year and reference 2005, since March 2009.
    

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12. What reference are the price indices for industry and services to business expressed in?

    The indices have been published with a reference of 2005 since the start of March 2009, meaning that the mean of the monthly indices for the year 2005 has a value of 100. For indices introduced after 2005, the reference date is the month of creation of the index. The date at which the level of an index has a value of 100 is called the reference date.
    

    The changes of base year and classification were made at the same time: the price indices have been expressed in C.P.F. Revision 2 of 2008, base year and reference 2005, since March 2009.
    

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13. What is the base year?

    The base year is the year from which the weightings are drawn. It has been 2005 since March 2009 for aggregated indices.

    The changes of base year and classification were made at the same time: the price indices have been expressed in C.P.F. Revision 2 of 2008, base year and reference 2005, since March 2009.
    

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14. How often are the price indices for industry and services to business published?

    Almost all the industrial producer price indices are monthly, with a few rare exceptions being quarterly. The survey therefore responds to demand for outlook indicators.
    

    The producer price indices for services to business are quarterly.

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15. Are price indices for industry and services to business revised?

    Unless indicated otherwise, the price indices for industry and services to business are provisional for a three-month period.
    

    The revisions take account in particular of late responses by companies and of any changes made to weightings as part of the ongoing renovation of indices.
    

    In any indexation clauses in contracts, we recommend that you refer to the latest final indices published.
    

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16. What is the publication schedule of the price indices for industry and services to business?

    The monthly (or quarterly, respectively) indices are generally available less than 30 days (35 days at most) after the end of the reference month (or quarter, respectively). The publication schedule is announced four months in advance.

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17. Where can I find the price indices for industry and services to business?

    All the indices that are published are to be found on the websites of INSEE :

    • The Bulletin Statistique
    • The Macroeconomic Database (BDM).

    The monthly Industrial import and producer price indices (IPPI) Informations Rapides and the quarterly Producer Price Index for Services to Business Informations Rapides provide the main results along with a commentary.

    The price indices for industry and services to business are also published on the European level by Eurostat under the theme “Industry, Commerce, Services”.

    The OECD also publishes the producer price indices for the countries concerned in the harmonised international classification (the ISIC).

    The indices are also referenced on the IMF website.

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18. Who calculates the price indices for industry and services to business?

    Most of these indices are calculated by the “Price Indices for Industry and Services to Business Division” of INSEE, and by the Ministerial Statistical Offices for the rest.
    

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19. Who is responsible for the choice of indices used for indexation of contracts?

    The relevance of the index that is chosen is the sole responsibility of the user. INSEE does not have a standpoint on the suitability of indexation or on the choice of indicators, for these decisions are the sole responsibility of the contracting parties: the role of INSEE is not to advise the use of one price index or another for indexation purposes, or even to propose any such use. However, INSEE does provide a large number of price indices and inform users of the content of the indices that are published so that they can make the most appropriate choice possible.
    

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20. How can a price index be interpreted?

    A price index summarises the change in prices between a given reference period and the current period.
    

    E.g. a price index equal to 110 means that since the reference period, prices have increased by 10%.

    The reference period is the date for which the index value is 100. The indices have been published with a reference of 2005 since early March 2009, meaning that the mean of the monthly indices for the year 2005 has a value of 100. For indices introduced after 2005, the reference date is the month of creation of the index.
    

    To compare changes in price between two given periods (usually two given months), refer to the evolution in the indices between these two months and not to the difference between the two indices.
    

    E.g. a price index value of 152.0 in January 2009 and 157.5 in February 2009 shows a price rise over one month of (157.5 - 152.0) / 152.0 = 3.6%. As a difference, the change over one month is 157.5 - 152.0 = 5.5 points and is affected by the initial level of the index. To update contracts by indexation on this index, the first method should be used.
    

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21. How can indices be connected together when there is a change of reference date?

    When there is a change in the reference date (such as the switch from the reference of 2000 to 2005 in March 2009), connecting coefficients (xls file - 537 kB) are placed at the disposal of users so that the series with the former reference can be extended. These factors are proposed mainly for indices of the four-digit level of the C.P.F. or lower. Also, as part of the renovation of the branches (approximately every five years), some indices may be interrupted and if this is the case, a connecting coefficient is proposed to extend the series that has ended using the closest series.

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22. How can indices be connected together when there is a change of classification?

    When there is a change of classification (switch from C.P.F. rev.1 to C.P.F. rev.2 in March 2009, for example), connecting coefficients are placed at the disposal of users so that the series in the former classification can be extended, as far as possible. These coefficients are mainly proposed for indices of the four-digit level of the C.P.F. or lower.

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23. Are the indices raw or are they corrected for seasonal variations (csv)?

    All the price indices for industry and services to business are raw, meaning that they are not corrected for seasonal variations.
    

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24. How is a price index for industry or services to business calculated?

    Price indices for industry or services to business are chain-linked Laspeyres indices with fixed weighting over a period of about five years. In this way, we can compare over time the value of a basket of transactions that are being monitored and which are representative of production in the branch in the base year.
    

    The indices are constructed by successive aggregations.

    The chain of calculations is as follows:

    • First, for each reference transaction, a simple, so-called elementary index is calculated by comparing the observed price with that measured the previous month (or quarter);
    • Then, all the elementary indices of a group of products in the same family are aggregated, by calculating a weighted mean of the elementary indices (first level of aggregation);
    • The aggregation operation is then repeated at each level in the classification in question until we obtain a global index (for the whole of the field). At each level, aggregation is carried out by calculating the arithmetic mean of the lower-level indices to which weighting coefficients are allocated.

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25. What is the weighting used in calculating price indices for industry and services to business?

    The indices are constructed by successive aggregations. At each level, the aggregation uses an arithmetic mean of the lower-level indices to which weighting coefficients are allocated.
    

    • On the detailed level (strictly inferior to the 4-digit level of the C.P.F.), the weightings correspond to the data supplied by the companies that are surveyed (turnover or amount of imports). The weighting associated with a family of products reflects the real weight of that family in the branch as a whole as closely as possible.
      
    • On the more aggregate level, they are taken from the 2005 national accounts and the amounts of imports recorded by Customs. The weightings that are used reflect the structure of the economy at a given date (currently 2005).
      

    The year from which the weightings are drawn is called the base year.
    

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26. How often are the weightings revised?

    Weightings are updated regularly every five years (or less in branches subject to major technical developments).
    

    • On the detailed level (strictly inferior to the 4-digit level of the C.P.F.), weightings are updated branch by branch each time the sample that is surveyed is renovated. This operation consists in updating the companies that are surveyed and the reference transactions that are tracked to reflect the recent structure of goods and services as closely as possible.
      
    • On the more aggregate level, weightings are modified every five years, in accordance with the requirements of European Regulation n°1165/98. Since March 1999, the year from which the weightings are drawn (or base year) has been 2005 for aggregate indices. Previously, they were expressed with the base year of 2000.
      

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27. What is the price collection process?

    The process comprises two phases: a renovation phase (or renewal of the company samples and reference transactions that are monitored and their weightings) and an ongoing collection phase:
    

    • The renovation phase involves choosing the companies to be surveyed. Each of them receives a visit from an INSEE investigator. In this interview, the reference transactions whose prices will be monitored are defined. Information is also collected on turnover and the amount of imports for the last known accounting period.
      
    • The ongoing price collection phase involves the dispatch by INSEE of a monthly or quarterly questionnaire to the companies in the sample (sent at the end of the month or quarter). The purpose of the questionnaire is to collect prices over a four-month period (two quarters). Companies are also invited to report any modifications likely to influence the stability of transactions and any particular conditions that might be a source of sudden price changes (such as promotions, product launches, stock disposal, rises in raw materials). On the occasion of the company visit, these latter points are addressed precisely with the investigator.
      

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28. Which companies are surveyed?

    The companies are sampled from the survey databases held by INSEE. Selection of the sample obeys what is referred to as a “rational” choice: the companies are ranked in decreasing order of size (measured in terms of sales or of the amount of imports); a selection is then made of the largest units whose cumulative turnover (or imports, respectively) represents 70% of the branch.
    

    The list of sampled companies is confidential, being covered by Law n°51-711 of 7 June 1951 (in french) on legal obligation, coordination and confidentiality in the field of statistics.

    The sample is updated regularly every 5 years to be as representative as possible of the recent structure of goods and services.
    

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29. How do you choose the reference transactions to be monitored?

    Each selected company is visited by an INSEE investigator. During the interview, a certain number of reference transactions are defined that are both representative of price trends in the company and easily determined, in order to limit the response burden for the company to the extent possible.
    

    More precisely, all the company’s products are divided into a number of families with homogenous price trends. Then, within each product or group of products, one or several reference transactions are selected as being representative of price trends for all the transactions in that family. For each reference transaction that is selected, a choice is made of the price indicator that most closely reflects changes in the price of the transaction in question.
    

    The reference transactions are updated regularly every 5 years to be as representative as possible of the recent structure of goods and services.
    

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30. How often are reference transactions changed?

    Reference transactions are revised on two occasions:

    • As part of the monthly or quarterly price collection, companies are invited to indicate in the questionnaire any modifications likely to have an influence on the stability of the transactions (such as the introduction of options, innovations or product replacements, for example).
      
    • The sample for each branch is updated every five years (or less in branches subject to major technical developments). This operation consists in updating the companies that are surveyed and the reference transactions that are tracked to reflect the recent structure of goods and services as closely as possible.

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31. For further information

    
    History of series:

    • Retrospective directory for France 1948-1988 - Buy online.

    
    Legal framework of the survey:

    • European Regulation n°1165/98
    • Statistical confidentiality
    • Annual ruling available on www.cnis.fr

    
    Methodological information:

    • Methodological Guide for Developing Producer Price Indices for Services (Eurostat)
    • Methodology of short-term business statistics (Eurostat)
    • Insee Méthodes n°89, “ The French producer price indices and business-service price indices ”

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Series proposed as replacements for the indices of the Advisory Committee for Material Price Indices (COCIM)

1. Calculation methods

• For contracts made after December 2003, users are asked to no longer include the previous COCIM indices and instead use the industrial producer price indices calculated by INSEE.

• For contracts still in force and containing indexation clauses mentioning a COCIM index, users are invited to use the link ratios between the COCIM indices and the INSEE industrial price indices defined below.

  When COCIM indices are mentioned in the price revision formulae in contracts, the link between a date t earlier than December 2003 and the corresponding INSEE replacement NAF rev.1 index is established according to the following formula:

  

  where the ratio “  ” is called the link ratio between the COCIM index and the replacement INSEE NAF rev. 1 index.

  To switch from the INSEE NAF rev. 1 index obtained in this way to the equivalent INSEE NAF rev.2 index, multiply the indices in the series by the appropriate NAF rev. 1 to NAF rev. 2 link ratio.

  These ratios are available in the correlation table below.

2. Correlation table

A correlation table (xls file - 33 Kb) provides the macroeconomic database identifiers of the INSEE series (NAF rev.1 and NAF rev.2) proposed as a replacement for the COCIM indices, as well as the link ratios to be applied.

Series proposed as replacements for the Miscellaneous Products and Services (PSD) indices

1. General method

Three templates described below can be used to replace the five PSD indices. Users should ensure that these templates are suitable for their contracts. The choice of replacement reference and the monthly calculation of the corresponding values are made under the sole responsibility of the contracting parties.

The proposed replacement references are representative of the various components of the PSD indices and are based on a weighting that takes account of the one indicated in the BOCCRF of 3 June 1999. Their past trends correspond to those of the PSD indices.

a. The 3 templates replacing the PSD indices “A”, “B”, “C”, “T” and “D”

These templates use various series produced by INSEE: a French industry producer price index for the French market (EBI or EBIQ), the consumer price index for “transport, communication and hotels” (TCH) and the construction cost index (ICC).

For this last series, the release published in the BOCCRF of 30 September 2004 proposes to use the average of the four quarterly references known on each of the two dates between which the contract is revised.

b. Calculation methods for a contract indexed to a PSD index

For a contract mentioning a PSD index, the contracting parties are invited to use this index up to July 2004; then, for any date t later than July 2004, to consider one of the formulae below, depending on the case:

• For the PSD index “A”:

  

• For the PSD indices “B”, “C” and “T”:

  

• For the PSD index “D”:

  

Exemple:

Update of the former PSD index “D” for August 2004 in a contract drawn up in September 2000.

The values of the various indices are as follows:

The growth in the index between September 2000 and August 2004 can be measured according to reference template n°3 by:

The index has thus increased by 3.4% between the two dates considered.

c. Calculation methods for a contract drawn up or already revised since the end of the PSD indices

For these contracts, initially dated t0, for any date t later than July 2004 users can apply one of the formulae below, depending on the case:

• For the PSD index “A”:

  

• For the PSD indices “B”, “C” and “T”:

  

• For the PSD index “D”:

  

Exemple:

Creation of an index to replace the PSD index “D” for a contract drawn up in July 2004.

The values of the various indices are as follows:

Application of reference template n°3 results in:

The value of the index in August 2004 thus comes to 100.9.

2. Tailored approach

It is possible for the contracting parties themselves to choose the price indicators for materials, products and services which are characteristic of the costs of the service provision covered by the contract between them.

Several solutions are available, for example:

• Users can refer to the three templates outlined above and modify the weightings, that is, the coefficients used in the above formulae;
• They can also combine these models with other, more specific parameters, taken if necessary from the price indicators published by INSEE;
• They can use only part of the parameters incorporated into the templates and combine them with other indicators of their choice.

Users are advised to refer to the official INSEE series.

A wide choice is on offer, including:

• The industry producer price indices, available at a very detailed level;
• The services to businesses price indices, the number of which is gradually growing and which may, as they develop, replace the household consumer price indices.
• The consumer price indices, in particular for services.

These indices area readily available: the industry producer price indices and the consumer price indices are published in the month following the reference month. As for the services to businesses producer price indices, these are produced quarterly.

All these indices are available in the macroeconomic database.

3. Questions & answers on the PSD

1. Where can I find the values of the EBI, EBIQ, TCH and ICC indices proposed as replacements for the PSD indices?
2. What are the components of the EBI, EBIQ and TCH price indices?
3. Where can I find the components and weightings of the PSD indices?
4. Have the monthly values of the 3 templates replacing the PSD indices proposed in the release published in the BOCCRF of 30 September 2004 been published by INSEE or the DGCCRF?
5. Will the DGCCRF publish the monthly values of the EBI, EBIQ, TCH and ICC price indices in the BOCCRF?
6. The EBI, EBIQ, TCH and ICC indices proposed as replacements for the PSD indices do not fit in with the purpose of our contracts. Is it possible to use other index references?
7. Which price indices should replace a PSD index in the indexation clause of my contract? Can you validate a draft price revision formula?
8. The withdrawal of the PSD indices also affects the engineering index, which is 70% composed of the Syntec index and 30% of the PSD index D. What is the future of this index?
9. Most price revision formulae in our contracts comprise a “wage” index and a PSD index. Can we not replace the PSD index and only use a “wage” index in the new formulae?
10. Has the DGCCRF checked the equivalence between the past trends of the PSD indices and the 3 replacement templates proposed in the release published in the BOCCRF of 30 September 2004?
11. In the framework of a current contract, the price revision formula includes a PSD index in low proportions. Is it possible to remove it and increase the share of the other indicators incorporated into this formula?
12. The news release by the DGCCRF regarding the contract indexation scheme published in the BOCCRF of 30 September 2004 has an appendix presenting fictional examples for the replacement of the PSD indices in contracts underway and new contracts. I can”t find the values of the indices featuring in these examples?
13. In the Instruction of 28 August 2001 for enforcement of the Public Procurement Code (now revoked and replaced by the Decree of 7 January 2004 on the Public Procurement Code), it is indicated (paragraph 17.3) that any modification of the conditions for implementation of the revision clauses of contracts underway constitutes a serious irregularity which may distort the initial conditions of competitive procurement. Is this compatible with the replacement of the PSD indices by means of addenda?
14. The 3 templates replacing the PSD indices as proposed in the release published in the BOCCRF of 30 September 2004 combine a consumer index calculated inclusive of VAT (the TCH index) with producer indices calculated exclusive of VAT (the EBI and EBIQ indices). As the revision formulae are generally applied exclusive of VAT, will the effect of any change to the VAT rate not be passed on twice, at least partially?

Top of page

1. Where can I find the values of the EBI, EBIQ, TCH and ICC indices proposed as replacements for the PSD indices?
   • EBI, EBIQ and TCH indices.
   • Average over four quarters of the ICC index.

     The release published in the BOCCRF of 30 September 2004 proposes using the average of the four quarters known at each of the two dates between which the contract is revised.

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2. What are the components of the EBI, EBIQ and TCH price indices?
   • The “Energy, Intermediate goods” index, or EBI, is a price index elaborated by INSEE. This composite index measures the changes in prices (excluding VAT) of energy goods and intermediate goods originating from the activity of French industrial companies and sold on the French market. It is calculated by combining the Energy products and Intermediate goods price indices;
   • The “Energy, Intermediate goods, Capital goods” index, or EBIQ, is a price index elaborated by INSEE.
     This composite index measures the changes in prices (excluding VAT) of energy goods, intermediate goods and capital goods originating from the activity of French industrial companies and sold on the French market. It is calculated by combining the following indices: Energy products, Intermediate goods and Capital goods;
   • The “Transport, communications and hotels” index, or TCH, is a price index elaborated by INSEE.
     It is calculated by combining the following indices: Transport, Communications, Restaurants and cafés, Hotels incl. board.

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3. Where can I find the components and weightings of the PSD indices?

   This information appears in the BOCCRF n° 10 of 3 June 1999.

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4. Have the monthly values of the 3 templates replacing the PSD indices proposed in the release published in the BOCCRF of 30 September 2004 been published by INSEE or the DGCCRF?

   No. Further to the disappearance of the PSD indices and with the aim of making the transition smoother, users are offered indicative combinations of official INSEE indices likely to be similar to the structure of the PSD indices, for their contracts underway.

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5. Will the DGCCRF publish the monthly values of the EBI, EBIQ, TCH and ICC price indices in the BOCCRF?

   No. These indices are elaborated and published by INSEE.
   The official dissemination media are the INSEE's website.

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6. The EBI, EBIQ, TCH and ICC indices proposed as replacements for the PSD indices do not fit in with the purpose of our contracts. Is it possible to use other index references?

   The EBI, EBIQ, TCH and ICC indices are only given indicatively. The use of other parameters which may be better suited to the purpose of each contract is obviously possible and desirable.

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7. Which price indices should replace a PSD index in the indexation clause of my contract? Can you validate a draft price revision formula?

   The DGCCRF and INSEE are not authorised, or even able, to recommend index parameters for the price revision clauses of contracts of any kind, and cannot validate indexation formulae. This is the responsibility and the free choice of the contracting parties.

   In this perspective, you are advised to refer to the macroeconomic database, which contains a wide range of industry producer price indices, consumer price indices, and services to businesses producer price indices.

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8. The withdrawal of the PSD indices also affects the engineering index, which is 70% composed of the Syntec index and 30% of the PSD index D. What is the future of this index?

   This index was created by announcement of the Ministry for the Economy and Finances published in the Official Journal of the French Republic of 1st March 1974, and the index itself was published in the Official Journal of the Ministry for Infrastructure, Transport, Housing, Tourism and the Sea. It will shortly be revised by the Economic Affairs Directorate of the Infrastructure Ministry, in liaison with the competent departments of the Ministry for the Economy, Finances and Industry.

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9. Most price revision formulae in our contracts comprise a “wage” index and a PSD index. Can we not replace the PSD index and only use a “wage” index in the new formulae?

   With regard to public procurement contracts, the Decree of 23 August 2001 stipulates that “the revision formula must give a contractual representation of the cost items of the provision concerned”. This also makes good sense for all contracts. Systematic indexation based solely on a “wage” index is therefore unadvisable.

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10. Has the DGCCRF checked the equivalence between the past trends of the PSD indices and the 3 replacement templates proposed in the release published in the BOCCRF of 30 September 2004?

    The DGCCRF release of 30 September 2004 presents new indices elaborated by INSEE, the composition and combination of which may, according to certain construction assumptions specified in the release, be similar to the structure of the PSD indices.

    The formulae replacing the PSD indices thus incorporate references from among the EBI, EBIQ, TCH and ICC indices which are representative of almost all the components of the PSD indices, with weightings which retrace those of the PSD indices (by component family).

    However, differences in trend should not be discounted, since these modernised indicators have replaced index references which have gradually lost their economic relevance.

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11. In the framework of a current contract, the price revision formula includes a PSD index in low proportions. Is it possible to remove it and increase the share of the other indicators incorporated into this formula?

    Provided that the other contracting party consents, this choice may be envisaged.

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12. The news release by the DGCCRF regarding the contract indexation scheme published in the BOCCRF of 30 September 2004 has an appendix presenting fictional examples for the replacement of the PSD indices in contracts underway and new contracts. I can”t find the values of the indices featuring in these examples?

    They are fictional examples with fictional values, intended solely to illustrate the procedure to adopt in order to replace the PSD indices. The actual values of the various indices can be found in the macroeconomic database.

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13. In the Instruction of 28 August 2001 for enforcement of the Public Procurement Code (now revoked and replaced by the Decree of 7 January 2004 on the Public Procurement Code), it is indicated (paragraph 17.3) that any modification of the conditions for implementation of the revision clauses of contracts underway constitutes a serious irregularity which may distort the initial conditions of competitive procurement. Is this compatible with the replacement of the PSD indices by means of addenda?

    In an announcement made in February 2004 by the Legal Affaires Directorate (DAJ) of the Ministry for the Economy, Finances and Industry, it is specified that “for the replacement of indices which have an accessory and complementary nature in respect to the initial contract, an addendum to a public procurement or public service delegation contract would be legal provided that certain provisions specific to each of these types of contract were respected”.

    It should be considered that the disappearance, further to an administrative decision, of an official index used in a revision clause is an unforeseeable event for the parties to the contract and a case of force majeure involving the amendment of this clause. As a result, it is possible for the parties to a contract to make an addendum in order to take this circumstance into account and to allow their contract to continue to run.

    Additionally, an amendment by means of an addendum resulting from the replacement of indices in a revision clause does not appear likely in itself to substantially modify the conditions for implementation of these revision clauses, and thus the economics of the contract.

    Only a radical change to a price revision formula is likely to distort the initial conditions of competitive procurement.

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14. The 3 templates replacing the PSD indices as proposed in the release published in the BOCCRF of 30 September 2004 combine a consumer index calculated inclusive of VAT (the TCH index) with producer indices calculated exclusive of VAT (the EBI and EBIQ indices). As the revision formulae are generally applied exclusive of VAT, will the effect of any change to the VAT rate not be passed on twice, at least partially?

    This is true. However, this problem already existed in the PSD indices, in comparable proportions. Users are obviously free to choose the producer price indices only (including in the service sector, for which the INSEE is currently developing the range of indicators).

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