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6427.0.55.003 - Information Paper: Review of the Producer and International Trade Price Indexes, 2011  
Latest ISSUE Released at 11:30 AM (CANBERRA TIME) 02/09/2011  First Issue
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GLOSSARY


This glossary provides brief definitions or explanations of the main technical terms used in this publication.

APMI

Articles Produced by the Manufacturing Industries.

Basic prices

The amount received by the producer exclusive of any taxes on products and transport and trade margins.

Chain price indexes

Annually-reweighted chain Laspeyres price indexes referenced to the same year as the chain volume measures. They can be thought of as a series of indexes measuring price change from a base year to quarters in the following year using current price values in the base year as weights, linked together to form a continuous time series. In other words, chain price indexes are constructed in a similar fashion to the chain volume indexes. Quarterly chain price indexes are benchmarked to annual chain price indexes in the same way as their chain volume counterparts. Unlike implicit price deflators, chain price indexes measure only the impact of price change.

GDP

Gross Domestic Product. Expenditure approach – GDP using the expenditure approach is derived as the sum of all final expenditures, changes in inventories and exports of goods and services less imports of goods and services. Volume estimates are derived for each of the components as well as for the sum. Production approach – GDP using the production approach is derived as the sum of gross value added for each industry, at basic prices, plus taxes less subsidies on products.

Gross industry approach

Also called gross industry output – the sum of the sales of outputs of the establishments in the industry, including the sales of output among themselves, to other industries in the economy and within the industry.

Implicit price deflator

Obtained by dividing a current price value by its real counterpart (the chain volume measure). When calculated from the major national accounting aggregates, such as gross domestic product, implicit price deflators relate to a broader range of goods and services in the economy than that represented by any of the individual price indexes that are published by the ABS. Whereas the chain price indexes are chain Laspeyres indexes, the annual implicit price deflators are chain Paasche price indexes, i.e. each year-to-year movement is calculated using the current price value shares of the second of the two years to weight together the elemental price indexes.

Index reference period

The period in which an index series is given a value of 100.0. The index reference period should not be confused with the weighting reference period.

Industry

A general term to describe a group of production units engaged on the same, or similar, kinds of production activity.

Inflation (deflation)

A term commonly used to refer to changes in price levels. A rise in prices is called inflation, while a fall is called deflation.

Input (PPI) Index

A measure of the change in the prices of products (goods and services) bought as intermediate inputs by domestic producers. Covers both domestically produced intermediate inputs and imported intermediate inputs. Valuation is at purchasers' prices.

I–O tables

Australian National Accounts Input-Output tables – national accounting presentation that provides a means of presenting a detailed analysis of the process of production and the use of products (goods and services) and the income generated in the production process.

ITPI

International Trade Price Indexes – the Export Prices Index and the Import Price Index are two ITPIs.

MUMI

Materials Used in the Manufacturing Industries.

Net industry approach

Also called net industry output – the sum of the sales of output of the establishments in the industry to other industries of the economy. Gross industry output for the industry less the sales of the industry's output within the industry.

Output (PPI) index

A measure of the change in the prices of products (goods and services) sold as output by domestic producers. Covers both output sold on the domestic market and output sold as exports. Valuation is at basic prices.

Purchaser's prices

The amount paid by the purchaser inclusive of any taxes on products and transport and trade margins.

ROSC

Report on Observance of Standards and Codes.

SOP

Stage of Production (SOP) indexes relate to the output of all the goods and service industries categorised according to their sequencing in the production chain. Three separate SOP indexes are compiled with each stage denoting proximity to the production of a final product.

SDDS
Special Data Dissemination Standards – established by the International Monetary Fund to guide members that have, or that might seek, access to international capital markets in the provision of their economic and financial data to the public. Both the General Data Dissemination System (GDDS) and the SDDS are expected to enhance the availability of timely and comprehensive statistics and therefore contribute to the pursuit of sound macroeconomic policies; the SDDS is also expected to contribute to the improved functioning of financial markets.

Value aggregate

The current cost in dollars per year of purchasing (or revenue received from selling) the same quantity of products (goods and services) as was purchased/sold in the weighting reference period.

Weight

The measure of the relative importance of an item in the index regimen. Weights can be expressed in either quantity or value terms. Value weights are used by the ABS in compiling all official price indexes.

Weighting reference period

The period to which the fixed quantity weights relate.


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