Producer Price Index during October 2015

Transcription

1 Producer Price Index during October 2015 The Producer Price Index decreased by 0.6% month-on-month in October 2015 in year-on-year terms it fell by 4.5%. The month-on-month changes in the major sub-indices are as follows: ㅇ Agricultural, forestry & marine products : -4.3% ㅇ Manufacturing industry products : -0.9% ㅇ Electric power, gas & water supply : 0.6% ㅇ Services : 0.1% Weight Producer Price Index Month-on-month Year-on-year July Aug Sep Oct p July Aug Sep Oct p All items Agricultural, forestry & marine products Agricultural foods Livestock products Marine foods Manufacturing industry products Food products & beverages Coal products & petroleum products Chemical products Basic metal products Electrical & electronic equipment Electric power, gas & water supply Services Accommodation & food services Transportation Financial & insurance activities Real estate activities Notes : The Indexes are preliminary and may be revised next month. (%)

2 Domestic Supply Price Index 1) & Total Output Price Index 2) during October ) The Index measures the changes in the price of goods and services supplied into the domestic market by the stages of processing. 2) The Index measures the changes in the price of goods and services produced by domestic producers. The Domestic Supply Price Index decreased by 1.3% month-on-month in October 2015 in year-on-year terms it fell by 7.3%. The month-on-month changes in the major sub-indices are as follows: ㅇ Raw materials : -4.4% ㅇ Intermediate goods and services : -1.3% ㅇ Final goods and services : -0.7% Domestic Supply Price Index (%) Weight Month-on-month Year-on-year July Aug Sep Oct p July Aug Sep Oct p Domestic supply Price Index Raw materials Intermediate goods and services Final goods and services Notes : The Indexes are preliminary and may be revised next month. The Total Output Price Index decreased by 1.3% month-on-month in October 2015 in year-on-year terms it fell by 4.9%. Total Output Price Index (%) Weight Month-on-month Year-on-year July Aug Sep Oct p July Aug Sep Oct p Total Output Price Index Agricultural, forestry & marine products Manufacturing industry products Notes : The Indexes are preliminary and may be revised next month.

3 <Graphs> 1. Producer Price Index A. Inde B. Changes

4 2. Domestic Supply Price Index A. Inde B. Changes

5 3. Total Output Price Index A. Inde B. Changes

6 (Appendix 1) 1. How the Producer Price Index is compiled 1. Definition and use The Producer Price Index measures the changes in the price of goods and services produced and transacted in the domestic market. The index is used such as business trend indicators, deflators, etc. 2. Frequency The prices of goods and services are surveyed once a month, and the prices of agricultural, forestry and marine products are surveyed three times a month. 3. Prices surveyed: basic prices 4. Items subject to survey For goods and services, the transaction amounts in the domestic market of only those items accounting for more than 1/10,000 of the total transaction amount and more than 1/2,000 of the total transaction amount respectively, and those that represent the price fluctuations of items under the same classification are surveyed. 5. Method of compilation Classification Basic classification: The main five categories are agricultural, forestry & marine products; mining products; manufacturing industry products; Electric power, gas & water supply; and services. Specialized classification: Ten indices fall under this classification--foods & non-foods; fresh foods & excluding fresh foods; energy & excluding energy; information technology & excluding information technology; excluding foods & energy; and excluding fresh foods & energy.

7 Weight : Weight is the ratio in permillage that shows how much the domestic transaction value of the selected item and its similar ones accounts for the universe. It represents the importance of each item in the Index. No. of Items and Weights of Each PPI Category (as of 2015) Category # of items Weights Total Index 886 1,000.0 Commodities Agricultural, forestry & marine products Basic Mining products Manufacturing industry products Electric power, gas & water supply Services Foods Non-foods Fresh foods Items other than fresh foods Speciali Energy zed Items other than energy Information Technology (IT) Items other than information technology Items other than foods & energy Items other than fresh foods & energy Formula : A chained weighted formula is used. Quality adjustment method : Methods such as production cost, direct comparison, overlapping, and imputation are generally employed to adjust for quality. The Hedonic regression method is applied to products such as Notebook PC whose qualities are quantifiable by objective numeric values. 6. Notes on statistical use The purpose of the index is to measure the changes in the price, not to present absolute price levels. Prices of agricultural, forestry & marine products are bidding prices in a wholesale market, rather than those at which farmers and fishermen sell their products. The PPI may be compared with the Consumer Price Index, but should not be used to measure margins at the stages of producer and retail sales.

8 2. How the Domestic Supply Price Index is compiled 1. Definition and use The Domestic Supply Price Index measures the changes in the price of goods and services supplied into the domestic market by the stages of processing. 2. Method of compilation The Index aggregates and reclassifies the items in the Producer Price Index and Import Price Index. When the items in the Import Price Index compiled by the prices in the contract point are used for compilation of the Domestic Supply Price Index, they are adjusted by their time gaps between the contract point and the customs clearance point. 3. Notes on statistical use The final goods & services index seems to move similarly with the Consumer Price Index, the PPI, however would show different movement because it includes capital equipment that the CPI does not embrace. The Import Price Index adjusted by the customs clearance time is different from the Import Price Index complied by the contract prices. Coverage of each Index Goods Services Producer Price Index Import Price Index Export Price Index goods produced and transacted in the domestic market services produced and transacted in the domestic market imported goods exported goods Domestic Supply Price Index (Shadow)

9 3. How the Total Output Price Index is compiled 1. Definition and use The Total Output Price Index measures the changes in the price of goods and services produced by domestic producers. 2. Method of compilation The Total Output Price Index aggregates and reclassifies the items in the Producer Price Index and Export Price Index. The Export Price Index is complied by the prices set by a contract between two parties, and customs clearance time should be considered and reflected in the index. 3. Notes on statistical use The Export Price index is adjusted by the customs procedure time is different from the Export Price Index compiled by the contract prices. Coverage of each Index Goods Services Producer Price Index Export Price Index Import Price Index goods produced and transacted in the domestic market services produced and transacted in the domestic market exported goods Total Output Price Index (Shadow) imported goods

10 (Appendix 2) Release date of Producer Price Index during 2015 Statistics Date Producer Price Index during December 2014 January 19 Producer Price Index during January 2015 February 17 Producer Price Index during February 2015 March 19 Producer Price Index during March 2015 April 20 Producer Price Index during April 2015 May 19 Producer Price Index during May 2015 June 19 Producer Price Index during June 2015 July 17 Producer Price Index during July 2015 August 19 Producer Price Index during August 2015 September 18 Producer Price Index during September 2015 October 20 Producer Price Index during October 2015 November 19 Producer Price Index during November 2015 December 18 Note : Embargoed for release until the evening paper of the relevant dates of release. (However, news agencies, broadcasting companies and internet-based media are embargoed for publication until 06:00 am of the release date.)