PRICES IN THE NATIONAL ACCOUNTS
Chain Price Indexes are used to measure prices changes. The annual movements in GDP and Domestic final demand chain price indexes for 2006-07 were 4.6% and 3.1% respectively, this gap in price movements is mainly caused by changes in prices paid for imports and the prices received for exports. Prices of Exports of goods and services showed an increase of 5.9%, driven by large increases in Metals (up 41.2%), Mineral ores (up 20.5%) and Gold (up 15.9%) in 2006-07. This was partly offset by a large fall in Coal (down 14.5%).
Prices of Imports of goods and services showed a fall of 0.7%. Imported consumption goods prices fell 2.2%, driven by household electrical items (down 8.8%) and food and beverage (down 3.6%). Imported capital goods prices also fell by 4.3%, driven by computer equipment (down 14.6%) and communications equipment (down 9.4%). This was partly offset by an increase in non-monetary gold (up 15.0%).
Exports, Chain price indexes for selected items,
Reference year: 2005-06 = 100.0
The chain price indexes for the other major components of GDP, Household final consumption expenditure and Gross fixed capital formation, showed moderate increases of 2.6% and 2.7% during 2006-07. See Table 6 for more details.