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CHAPTER 1 – SUMMARY: ISSUES ON WHICH THE ABS SEEKS USER VIEWS
Coverage of the PPIs and ITPIs and meeting stakeholder requirements
1.10 Chapter 3 discusses the coverage of the PPIs and ITPIs and meeting stakeholder requirements.
1.11 The main conclusion is that ideally they should cover all production unit transactions as presented within the ANA and BOP.
1.12 Currently, the PPIs are based on a subset of transactions; firstly representing primary products, rather than all products and secondly, covering a greater number of goods than services.
1.13 The ABS will increase coverage with reference to ANA and BOP requirements. The ABS will evaluate user feedback to develop a longer term strategy to meet user needs.
1.14 At the end of Chapter 3, users are invited to comment:
The organising structure for the PPIs and ITPIs
1.15 Chapter 4 discusses the organising structures of the Indexes.
1.16 The main conclusions is that an organising structure for the PPIs and ITPIs should provide a framework to draw together price series to enhance inflation analysis. The review will consider the value of the Analytical Framework for Price Indexes, assessing the Stage of production (SOP) and Domestics Final Purchases (DFP) indexes for their ability to support the study of inflation.
1.17 Alternative organising structures will be evaluated, including a whole of economy input and output structure, which organises input and output indexes by industry. The United Stated Bureau of Labor Statistics (BLS) PPI program's experimental aggregation system will also be investigated.
1.18 At the end of Chapter 4, users are invited to comment on:
Frequency and timing of the PPIs and ITPIs releases
1.19 Chapter 5 discusses the frequency and timing of the Indexes release.
1.20 The main conclusion is that currently, in order to release the PPIs and ITPIs within a month of the end of the reference period, and before the CPI release, it is not possible to cover all transactions occurring during the third month of the reference quarter.
1.21 Given the volatility in price of some products, strategies for improving the coverage of the third month of the reference period will be considered, taking into account the competing priorities of timing and accuracy of the output. Delaying the timing of release for PPIs and ITPIs is the preferred strategy to accommodate improved pricing coverage of the third month of the reference quarter.
1.22 The demand for more frequent releases of the PPIs and ITPIs has previously been explored. The ABS position is that monthly PPIs would not represent value for money and would divert resources away from the production of higher priority outputs.
1.23 At the end of Chapter 5, users are invited to comment on how the proposed timing of and frequency release options may impact users.
1.24 Chapter 6 discusses other issues.
1.25 The main conclusion is that re-referencing of the PPIs and ITPIs, as well as those for all related ABS price series (except the Labour Price Index), will be harmonised to a consistent index reference period of 2009–10 = 100.0.
1.26 The frequency of re-weighting the PPIs will be reviewed. The quantities underlying the weighting patterns in the weight reference period remain fixed over the life of the basket. Over time, production activity shifts in response to economic conditions and changing production functions. The relative importance of products and industries will change and the index basket should be re-weighted to remain representative. The ABS will examine the ability to undertake more frequent weight updates of the PPIs into the future, and where possible, quantify the impact of weighting frequency.
1.27 The ABS will more formally document the drivers of the difference between the import and export price measures within the ITPIs, ANA and BOP.
1.28 The ABS will evaluate the consistency and appropriateness of the terminology used within ABS releases, such as the terms articles and materials.
1.29 At the end of Chapter 6, users are invited to comment on:
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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