Computer and peripherals price indexes (CPPI)
Detailed information for October 2016
The Computer and Peripherals Price Indexes (CPPI) are monthly series measuring changes over time in the price of computers, computer peripherals and smartphones sold to governments, businesses and households.
Data release - November 25, 2016
The Computer and Peripherals Price Indexes (CPPI) are monthly series measuring changes over time in the price of computers, computer peripherals and smartphones sold to governments, businesses and households. The methodology for producing these series employs the hedonic method, the result being an index series that tracks pure price change.
These index series are used by economists, industry analysts and the general public to track and comprehend events and trends in this important contributor to the Information and Communication Technology (ICT) sector.
Within Statistics Canada, the series pertaining to households are used in the calculation of the Consumer Price Index. Several series are used by the Canadian system of macroeconomic accounts in deflating the value of gross investment by the business and government sectors.
Reference period: The time period for which the CPPI equals 100 is the year 2015.
Collection period: The week of the 15th day of every month.
- Information and communications technology
- Prices and price indexes
Data sources and methodology
The universe for the CPPI consists of all vendors or distributors of computers, computer peripherals and smartphones in Canada.
A representative cut off sample of products is chosen, monitored and replenished from the administrative data provided for the following indices:
For the peripherals, however, all of the models that match in two consecutive months are used to estimate the index.
Data are collected from other Statistics Canada surveys and/or other sources.
The data are obtained from International Data Corporation (IDC) of Canada Ltd. and are collected the week of the 15th of every month. IDC is a private firm that collects, analyses and distributes information on computers and the Information Technology (IT) sector in general.
In the day-to-day collection and processing of these index series, emphasis is placed on the examination and evaluation of prices. Subject matter specialists monitor developments in the industry, which they compare to the price information received. Outliers or suspicious prices are identified during the initial data processing and then verified with the data supplier.
Imputation is generally carried for missing data. In this situation, an estimate is generally made based on the price movement of similar products. Imputation is also done for handling quality change associated with replacements to products. Hedonic coefficients are used to adjust for quality change between discontinued and new models.
The weights used in the various price indexes are based on the shipment information provided by IDC. The shipment information covers the number of units shipped by vendors, as identified by the sub-groups for a particular product. Weights for the computer series, the peripherals series and the smartphone series are updated annually.
The price and model specification information are supplied by IDC. The prices used are street prices and do not include taxes or shipping and handling charges. One important aspect of these series is the continual and notable improvement in the quality of this category of goods. As a result, the treatment of quality change becomes an important issue. When the pricing for a model in the sample is no longer available, a replacement model is linked in using a hedonic quality adjustment technique to provide an imputed link-in price. This treatment accounts for any substantial differences in quality between the replacement model and the discontinued model.
For more information about the methodology used to produce the CPPI, see Statistics Canada Catalogue no. 62-014-XIE.
The quality of this index is maintained through the expertise of the analysts assigned to it. They develop a thorough knowledge of the domain, which is supplemented by outside personal contacts with the data providers. Much time and effort is devoted to detecting and following up unusual fluctuations over time in the pricing patterns of goods and services. Prior to dissemination, the price indexes are analyzed and historic trends reviewed.
Statistics Canada is prohibited by law from releasing any data which would divulge information obtained under the Statistics Act that relates to any identifiable person, business or organization without the prior knowledge or the consent in writing of that person, business or organization. Various confidentiality rules are applied to all data that are released or published to prevent the publication or disclosure of any information deemed confidential. If necessary, data are suppressed to prevent direct or residual disclosure of identifiable data.
Individual price and weight data collected under the Statistics Act are confidential. Price data are converted to price indexes and data are released so that it is not possible to identify the suppliers of the raw price information.
Revisions and seasonal adjustment
The index is subject to a six-month revision period and data is not seasonally adjusted.
The statistical accuracy of this index depends on price and weight data, which are obtained from an outside data source (IDC). Through continuous monitoring of the data received and discussion with the supplier, an acceptable level of data quality and integrity is maintained for the purposes of producing the price index series.
Due to the fact that administrative data is used, confidence intervals are not currently estimated and statements about the statistical reliability cannot be made.
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