Producer Price Index during December 2016

Transcription

1 Producer Price Index during December 2016 The Producer Price Index increased by 0.8% month-on-month in December 2016 in year-on-year terms it increased by 1.8%. The month-on-month changes in the major sub-indices are as follows: ㅇ Agricultural, forestry & marine products : 1.5% ㅇ Manufacturing products : 1.5% ㅇ Electric power, gas & water supply : -1.2% ㅇ Services : 0.0% Producer Price Index Month-on-month Year-on-year Weight p Sep Oct Nov Dec p Sep Oct Nov Dec p All items 1, Agricultural, forestry & marine products Agricultural foods Livestock products Marine foods Manufacturing 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 December ) 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 increased by 1.0% month-on-month in December 2016 in year-on-year terms it increased by 2.2%. The month-on-month changes in the major sub-indices are as follows: ㅇ Raw materials : 0.4% ㅇ Intermediate goods and services : 1.4% ㅇ Final goods and services : 0.3% Domestic Supply Price Index (%) Month-on-month Year-on-year Weight p Sep Oct Nov Dec p Sep Oct Nov Dec 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 increased by 1.3% month-on-month in December 2016 in year-on-year terms it increased by 2.8%. Total Output Price Index (%) Month-on-month Year-on-year Weight p Sep Oct Nov Dec p Sep Oct Nov Dec p Total Output Price Index Agricultural, forestry & marine products Manufacturing 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 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. Items marked without comparable price quotations for considerable period(e.g. ships, weapons, aircraft, works of art) are excluded. 5. Method of compilation Groups Basic Groups: The main five categories are agricultural, forestry & marine products; mining products; manufacturing products; Electric power, gas & water supply; and services. Specialized Groups: Ten indices fall under this classification--foods & excluding-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 2016) Category # of items Weights Total Index 878 1,000.0 Commodities Agricultural, forestry & marine products Basic Mining products Manufacturing industry products Electric power, gas & water supply Services Foods Excluding foods Fresh foods Excluding fresh foods Speciali Energy zed Excluding energy Information Technology (IT) Excluding information technology Excluding foods & energy Excluding 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 2017 Statistics Date Producer Price Index during December 2016 January 19 Producer Price Index during January 2017 February 20 Producer Price Index during February 2017 March 20 Producer Price Index during March 2017 April 19 Producer Price Index during April 2017 May 19 Producer Price Index during May 2017 June 19 Producer Price Index during June 2017 July 19 Producer Price Index during July 2017 August 21 Producer Price Index during August 2017 September 19 Producer Price Index during September 2017 October 20 Producer Price Index during October 2017 November 20 Producer Price Index during November 2017 December 19 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.)