CHAPTER 1 INTRODUCTION
PRODUCER AND INTERNATIONAL TRADE PRICE INDEXES
1.1 The Australian Producer Price Indexes (PPIs) measure the change in the prices of products (goods and services) as they leave the place of production or as they enter the production process. The Australian International Trade Price Indexes (ITPIs) measure the change in the prices paid for imported products and the prices received for exported products.
1.2 The principal purpose of the PPIs and ITPIs is to support the compilation of the Australian National Accounts and Balance of Payments. The indexes also support inflation monitoring and analysis of the Australian economy.
1.3 The Australian Bureau of Statistics (ABS) compiles a suite of quarterly input and output industry specific price indexes. In addition, the “Stage of Production” price indexes cover the whole economy. The three stages of production (preliminary, intermediate and final demand) show both the changes in the prices of final products, as well as the changes in prices of inputs used to produce the final products. Also included are import and export prices.
1.4 A selection of the PPIs and ITPIs currently released by the ABS are:
- Stage of Production (SOP) Producer Price Indexes
- Presented by stage of production, source and destination within the economy
- Manufacturing Industries Producer Price Indexes
- Input to the Manufacturing industries
- Output of the Manufacturing industries
- Construction Industries Producer Price Indexes
- Input to the House construction industry
- Output of the Construction industries
- Mining Industries Producer Price Indexes
- Input to the Coal mining industry
- Services Industries Producer Price Indexes - A development program to improve the coverage of Australian Service Industries PPIs is in progress.
- Output of the Accommodation and food services industries
- Output of the Transport, postal and warehousing industries
- Output of the Information media and telecommunications industries
- Output of the Rental, hiring and real estate services industries
- Output of the Professional, scientific and technical services industries
- Output of the Administrative and support services industries
- Output of the Public administration and safety industries
- Output of the Other services industries
- International Trade Price Indexes (ITPI)
- Import Price Index (IPI) - an input price index (into the Australian domestic economy from the rest of the world)
- Export Price Index (EPI) - an output price index (from the domestic economy to the rest of the world).
1.5 Further details on PPI and ITPI outputs and dissemination methods are outlined in Chapter 14.