Statistics South Africa has launched the first phase of a project to redevelop its producer price index (PPI). The successful implementation of a new consumer price index (CPI) in 2009 was an important milestone in the improvement of Stats SA' overall system of price statistics. A thorough overhaul of the PPI is the next stage in this process. With the help of international statistical consultants, Stats SA has undertaken a comprehensive review of the PPI against international best practice.
The first phase of the project will be to compile new price indices for mining and manufacturing. The new producer price indices are planned for first publication in February 2012, showing monthly index numbers from January 2011 to January 2012. They will be based on an average index value of 100 for calendar 2011.
A key objective of the PPI redevelopment project is to compile separate indices for the prices of goods intended primarily for use in further processing and the prices of goods intended primarily for domestic sale or export. Goods that are produced domestically may be sold either at home or abroad. The high-level weights for the new PPI will continue to be determined by value added (as demanded by international practice and coherence with the national accounts), which does not distinguish between domestic sales and exports.
Stats SA is fully conscious of the discontinuity between the existing PPI and the new PPI that will result from the redevelopment process. However, we believe that the planned improvements are essential for bringing South Africa' PPI into line with international best practice.
Wherever possible Stats SA will provide historical time series for users, and will assist users in understanding the transition and overcoming any difficulties which may be encountered.
Other indices that are part of the existing PPI will be continued, but will be rebased and (where necessary) reweighed to ensure consistency with the new series. Separate export and import price indices will be developed in the next phase of the redevelopment project once the new PPIs from the first phase have been introduced.
Enquiries:
Joe de Beer
Tel: 012 310 8024
Cell: 082 888 2600
E-mail: joedb@statssa.gov.za
Peter Perkins
Tel: 012 310 8389
Cell: 082 883 9532
E-mail: peterp@statssa.gov.za
Issued by: Statistics South Africa
2 October 2009
Source: Statistics South Africa (http://www.statssa.gov.za)
