How much have the prices of veterinary services risen in 2023?

How do you measure price increases in the general economy?

The Consumer Price Index or CPI is a rate of change that measures the change in prices over time. Its knowledge is essential to understand the evolution of the global economy or of a specific sector.

The calculation of this indicator begins by creating a theoretical "basket" that represents an average monthly purchase of a household, so that each product or service has a weight proportional to the frequency and quantity with which it is purchased. Finally, the price of this basket in the month in question is compared with the price of the same basket in the same month of the previous year. The basket must remain constant in its composition, so that the variation in its price is only the result of the individual variation in the prices of the services and products of which it is composed. Even so, the composition of the basket should be updated from time to time to adapt to new purchasing habits. This method, known as chained Laspeyres method is the most widely used for the calculation of the CPI, and is the one applied by the INE (National Statistics Institute).

A variant of this indicator is the core CPI, which does not take into account either energy products or unprocessed foodstuffs because they can bring about sharp and one-off changes that significantly affect the overall CPI.

How does VMS calculate the veterinary CPI?

Unlike the calculation constructed by the INE for veterinary services, which include services such as cleaning, hairdressing, accommodation, training, insurance... that have little or nothing to do with the clinical acts of a veterinary centre, at VMS we offer a more specific and exhaustive CPI, composed exclusively of veterinary services. The large sample that feeds the index comprises a total of 630 centres and analyses the 34 most common clinical services with their corresponding weighting (which we calculate on a constant January 2022 basis). To improve the statistical robustness of the sample, we choose only services that have ever been sold in at least 10% of the facilities included in the analysis. The basket of services we include in this analysis consists of the following veterinary procedures: visit, follow-up visit, injection, pentavalent vaccine, hospitalisation, rabies vaccine, emergency (overnight) visit, x-ray, ultrasound, identification/microchip, specialty visit, trivalent vaccine, exotic visit, nail clipping, cremation, feline ovariohysterectomy, feline neutering, electrocardiography, euthanasia, mouth cleaning, canine ovariohysterectomy, individual incineration, canine neutering, urethral catheterisation, exodontia, home visit, mammary tumour, laparotomy, rhinoscopy and inguinal hernia.

In addition, to help managers and owners of veterinary centres to better understand their positioning in the market in terms of prices of the most demanded veterinary services, and to deepen the price analysis of such services, we invite you to use our tool Price Studiesavailable free of charge on our website.

Below is a comparative graph between the VMS vet CPI, the headline (INE) and the core (INE).

Conclusions

Spanish veterinary practices have applied very moderate price increases for their services over the last 2 years, remaining in the range between 3 and 5% despite the strong oscillations of the general and underlying CPI. In December the price increase of veterinary services stands at 4.01GDP3T ahead of the core CPI which falls to 3.81GDP3T while the headline CPI remains below at 3.11GDP3T.

© Veterinary Management Studies y www.estudiosveterinarios.com, 2024. Any use in whole or in part or duplication of this material without the express written permission of the author or owner of this site is strictly prohibited. Excerpts and links may be used, provided that Veterinary Management Studies is fully and clearly credited. www.estudiosveterinarios.com with an appropriate and concrete address to the original content.