Australian Bureau of Statistics
6419.0 - Producer and International Trade Price Indexes, 1995
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 13/02/1995 Ceased
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7.1. The Price Index of Materials Used in Manufacturing Industries, Australia was first published in April 1975 on a reference base of 1968-69 = 100.0. The index had a weighting pattern derived from the value of estimated manufacturing materials usage in 1971-72. Monthly index numbers were compiled for the period July 1968 to November 1985. A description of the first series, including its composition and weighting pattern, is given in the April 1975 issue of the publication (Catalogue No. 6411.0).
7.4. The indexes measure changes in prices of materials used by establishments classified to the Manufacturing Division of ANZSIC. Separate price indexes are published for materials used in the Manufacturing Industry as a whole and for 17 separate Manufacturing 'sectors' (defined in terms of ANZSIC Subdivisions or Groups). Separate series are also provided for materials classified according to whether they are domestically produced or imported. Special series for selected materials used in the fabricated metal products industry (ANZSIC Group 276) are also published.
7.8. Thus, the pricing basis and the weights used for these net sector indexes reflect purchases and transfers at the point of entry to each respective manufacturing 'sector'.
Composition and weighting
7.9. Table 7.1 provides the composition and weighting of the Manufacturing Division index. Materials are classified by their ANZSIC industry of origin (i.e. the industry in which, in accordance with the classification rules of ANZSIC, the materials are primarily produced in Australia or the industry in which the materials would be classified had they been produced in Australia). Percentage contributions in 1989-90 of materials, classified by the relevant ANZSIC subdivisions and groups, to the Manufacturing Division as a whole are provided.
7.11. The items included in the indexes were selected on the basis of values of materials used in 1989-90 as reported in the Census of Manufacturing Establishments.
7.16. Price collection is spread across the three months of the quarter. For those materials subject to significant price variation throughout the quarter, and for which a single price observation would not be representative, average prices are collected after the end of the quarter. Such materials include agricultural materials, and metal ores and concentrates.
Pricing of transferred goods
7.20. Transfers which do not take place in the open market present problems in the measurement of price change. For example, a vertically integrated enterprise extracts a mineral (mining activity) and also processes it (manufacturing activity). Since the material is transferred from one part of the enterprise to another there is usually no transaction price. In such instances, various methods of imputing changes in market prices have been adopted. Depending on the circumstances and the availability of data, these methods include:
Pricing seasonal materials
7.21. In the case of seasonal materials such as fruit and vegetables, where deliveries do not occur over the whole year, the previous season's prices are repeated for the months outside the selling season until the next season's prices become operative.
7.22. For some items, such as sugar cane, the prices are only determined annually and the final prices do not become known until sometime after the relevant season or contract period. Estimates of the current period price are used until the final price becomes available. Incorporation of the final price may involve revisions to already published index numbers.
Pricing of electricity
7.23 In recent years the electricity industry has been subject to considerable change due to deregulation and micro economic reform including the move to a 'national' grid covering, initially, New South Wales, Victoria and Queensland. This process of change is still continuing.
Pricing of water
7.25. There are similar problems in collecting prices for water, further complicated because there are two components to the tariff:
7.26. Again, a representative sample of users has been chosen and the average usage of water over the previous five years has been determined for each user. A price is then collected each month for the consumption of that average amount of water.
This page last updated 20 January 2006
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