Coverage characteristics	Producer prices index of industrial products is calculated on the basis of a modified Laspeyres formula (2015=100) covering whole Azerbaijan territory. Producer Prices index of industrial products is calculated on the following sections of economic activity types (NACE classification) dividing: B "Mining Industry", C "Manufacturing industry" D "Production, distribution and supply of electricity, gas and steam", E "Water supply, treatment and processing of waste and bigger subclass, class, subgroups and groups. Producer Prices index of industrial products is prepared both economic activity type and kind of products. Producer Prices Index (PPI) based on economic activity type is indicated on the page of National Total Indicators. Available PPI is being prepared on the basis of 1100 enterprises' data covering 70% of present industrial production. Prices data on 3824 item is collected not later than 2nd working day of the month following the reporting period. 70 per cent of enterprises which could respond current criterion in the sample framework of PPI and afterwards no corrections are made to criterions and data. Current CPI is calculated on the basis of data represented by 1100 enterprises and here includes surveyed 3824 product price (modification of 750 products). Data collected on prices reflects value indicator related to market selling of consumer and indicates the data about enterprises' operations which presenting report. Weights are updated annually and are linked with one another by chain method between January and December of each year. Aggregated weights of indices are reflected relative share in total production which got on the basis of annual survey of manufacturing enterprises. This survey covers about 4000 enterprises. Category/ Relative weight in index Code Item Weight 06 Extraction of crude petroleum and natural gas 65,14 07 Mining of metal ores 1,33 08 Extraction of stone, sand, gravel, salt and other mining industry produts 0,28 10 Production of food products 7,52 11 Beverage production 1,43 12 Production of tobacco products 1,46 13 Textiles industry 0,7 14 Production of wearing apparel 0,35 15 Production of leather and related products, shoes 0,09 16 Production of wood and related products 0,18 17 Production of paper and carton 0,35 18 Polygraphy activity 0,25 19 Production of oil products 8,03 20 Chemical industry 2,06 21 Production of pharmaceutical products 0,022 22 Production of rubber and plastics products 1,2 23 Production of construction marerials 2,3 24 Metallurgical industry 1,77 25 Production of fabricated metal products 0,65 26 Production of computer and other electronic equipments 0,18 27 Production of electrical equipments 0,49 28 Production of machinery and equipments 0,13 29 Production of motor vehicles and trailers 0,26 31 Furniture production 0,36 32 Production of jewellery,musical instruments, sport and medical equipments 0,19 33 Repair and installation of machinery and equipments 0,05 D Production, distribution and supply of electricity, gas and steam 3,22 E Water supply, treatment and processing of waste 0,008 No corrections made in products taking into account of seasonally factors.
Periodicity	Monthly
Timeliness	PPİ is calculated regularly and in a timely manner from the 10th to the 15th of the month following the reporting month.

Advance dissemination of release calendar	The release calendar of data is indicated on the following web page of SSC of Azerbaijan Republic.
Simultaneous release to all interested parties	Data are released through press releases, through the regular State Statistical Committee's publications, and on the following web page: 1) Monthly bulletin "Production price indices" 2) Annual Statistic Yearbook "Prices in Azerbaijan" 3) Monthly report of SSC "Socio-Economic Development" is delivered to users simultaneously via.
Integrity
Dissemination of terms and conditions under which official statistics are produced, including those relating to the confidentiality of individually identifiable information	The State Statistical Committee (SSC) produces and disseminates data in accordance with the Law of the Azerbaijan Republic on Official Statistics (Resolution of February 18, 1994). Article 1 of the Law provides the statutory basis for independently selecting sources and methods required to produce and disseminate CPI data. Article 2 of this Law establishes the SSC as the main organization responsible for producing official statistics. Article 5 holds the SSC responsible for: (I) Disseminating statistical information of broad interest to the public; (II) guaranteeing the reliability and objectivity of statistical information; and (III) assuring the accuracy, quality, and timeliness of the data produced. Article 11 guarantees the confidentiality of the data reported to the SSC. Survey forms clearly state that reported data is subject to confidentiality under the Law. The Law of the Azerbaijan Republic on Official Statistics is available in English on the following SSC webpage and in Azerbaijan language
Identification of internal government access to data before release	Government officials don't have access to data before.
Identification of ministerial commentary on the occasion of statistical releases	Statistics data is published not taking into account of other ministry's comments.
Accurate definition of indicators and presenting data related to major changes in methodology	Data about PPI in appropriate publications is indicated as data to be reviewed. Accurate definition period of indicators is equal to 1. Accurate defined indicators are indicated in publications. The PPI index series are not revised. A notice is also provided in the event that data are revised. The SSC is informed of major changes occurred in methodology, source of data and calculation methodology. Changes occurred in calculation methodology of CPI are set in the section of "Methodological explanations" of web page that belongs to SSC, in the monthly report named "Socio-economic Development", as well as other methodological publications. http://www.stat.gov.az/menu/7/
Quality
Dissemination of documentation on methodology and sources used in preparing statistics	Brief information about methodologies is indicated following regular publications of SSC. 1. monthly bulletin "Production price indices" 2. Annual Statistic Yearbook "Prices in Azerbaijan" 3. Monthly report of SSC "Socio-Economic Development"
Dissemination of information on components, results of inspection of indicators, confirmation of substantiation of indicators and statistical bases for ensuring statistical comparison	The PPİ of industrial products is prepared both for the Republic of Azerbaijan as a whole, and for divisions of economic activity (IFNT) into sections B, C, D and E, as well as larger subclasses, classes, subgroups and groups. Indicators are published in the following publications: "Statistical indicators of Azerbaijan" "Prices in Azerbaijan" "Azerbaijan in figures" Monthly bulletin "Producer price indices"

• Definition: Measure of overall change in the cost of a fixed set of goods recorded while quantity and quality became stabilize on all production units and subgroups.
• Classification: 5 digit national version of NACE nomenclature is used while classifying of the enterprises by economic activity types, but while classifying of the goods, 10 digital extended version of PRODCOM nomenclature is used.

• Field coverage: PPI of industrial products covers the mining industry, manufacturing industry, production, distribution and supply of electricity, gas and steam, water supply; treatment and processing of waste.
• Product coverage: Products are covered on condition that total volume of the product output by available enterprise is not less than 70%. Then representative selection of products/ operations covering all economic activity types of these enterprises is realized. Even products/operations that not includes to the scope of 5 digit category are even selected according to the main activity of the enterprise. 3824 outlets on 750 varieties are observed in current sample. If the outputting product both exporting and putting into sale to internal market, then it is recorded as two product type taking into account of production volume in that previous year.
• Geographical coverage: Whole country is covered.

• Timing of price observation: Price data for 3824 positions per month covers the period from the reporting period to the 2nd working day of the following month. Represented period in report: Prices are recorded at the operation moment not depending on actual payment time.
• Types of prices: last selling prices are belonged to collected price data deducting of taxes for products. This data reflects the value indicators related to market sails of producers including operations of units that presenting report.
• Grossing/netting procedures: Operations among the associated enterprises are recorded on the total base.

• Source of weights: weights for product indexes are based on selling of per product type in previous year, weights of indexes of economic activity types are based on total output volume, including change of reserves.
• Timing of current weights: When calculating the producer price index for 2021, the base weights of 2019 are used.
• Frequency of weight updates: Weights are updated annually and are linked with one another by chain method between January and December of each year. Survey indicators of enterprises which reflecting information about separate enterprises could be gotten during a year. This gives opportunity to update PPI in each year using weights structure that based on product value in 2 years before and price changes on December of previous year .For example, PPI 2021 is calculated based on revision of 2019 surveyed data by prices of December 2020
• Item selection: An item is selected on the basis of widespread demand and its regular sale at a reference enterprise.
• Selection of enterprises: Representative enterprises are selected on the basis of optimal production methods based on the production volumes of industrial enterprises. The selection is based on the indicators of the Department of Industry and Construction Statistics of the State Statistics Committee and information on the registration of enterprises. The State Statistics Committee maintains an updated register based on the official registration of enterprises. In addition, the Ministry of Taxes provides relevant information.
• Selection of products/operations: A weight of a product output in available production group is represented as representative factor in selected products for registration.
• Item/product specification: Detail level of item/product specification consists of 10 figures by extended 10 digital national product classification based on international 8-digital PRODCOM classification.
• Sample size: Price information for 3824 positions is collected on a monthly basis not later than the 2nd working day of the month following the reporting period. 70 per cent of enterprises which could respond current criterion in the sample framework of PPI and afterwards no corrections are made to criterions and data. Available PPI is being prepared on the basis of 1100 enterprises' data which covering 70% of present industrial production.
• Methods on collecting of price data: Collection of data on prices is mainly realized by the way of visiting in person or sending questionnaire by mail. Price registration is conducted on paper forms.

• Computation of lowest level indices: Lowest level indexes are calculated as an individual index of every product including to the sample. (Price of product unit in reporting month is divided into price of product unit in previous month. Revised index of reporting month by December of previous year is multiplied by revised index of previous two month by December of previous year and divided into hundred.) Aggregation of individual index is realized on the basis of indicators of industry production of product in previous year.
• Aggregation: A modified Laspeyres formula is used to calculate the indexes.
• Aggregation structure: Price indices of products are aggregated by fields.
• Alignment of expenditure and base period: Weights are updated annually and are linked with one another by chain method between January and December of each year.
• Linking reweighted index to historical index: The annual replacement of weights should not affect the quality of indices and their continuity. To this end, indices are linked with one another (between each December and January), and in this process they form sequential time series that have a fixed reference point as a base.
• Reference period: 2015=100.

• Treatment of missing prices: Temporarily missing prices are imputed replacing by prices of other products and all replaced commodity is included to scope every year. A broad range of commodity classifications ensures proper measurement of price changes.
• Selection of replacement items: If a current variety is permanently unavailable, a new replacement variety is selected. The new transaction price cannot be compared directly to the old transaction price, and therefore the price for the new item during the period in which the old item was observed must be obtained, and the change in quality must be estimated as a value equal to the difference between said prices during this period (consolidation or mutual stratification procedure).
• Adjustments for quality differences: No adjustments are made for quality differences.
• Introducing new products: New products are not introduced to the structure until weights are updated
• Seasonal items: Seasonal items registration is not conducted in Azerbaijan because intervals and selling of seasonal commodities are not characterized for industrial production of Republic.
• Verification of prices: Producer prices indices and PPI is compared each-other and characterized by analogical propensity.
• The goal of enterprises' survey is ensuring of full coverage. Data in report is verified with other collected data by SSC as much as possible. There is internal compliance between PPI on economic activity type and PPI on type of product, that's why there is no contradiction between their dynamics.
• Verification of processing: Auto-control is realized on per enterprise during creation of database and change of weights annually and all value of production volumes selected for observation is compared. Existence of distinction is verified in all NACE categories and weight system in representative sample. After calculating of PPI in two types (on NACE and PRODCOM classifications) dynamics tables of indexes that being in all aggregation levels are examined. Inconsistence between fields and total indexes on product types is never more than 1%.
• Seasonally adjusted indices: PPI data are not seasonally adjusted.