namibia producer price index- first quarter 2020 · the producer price index (ppi) measure the rate...
TRANSCRIPT
By: Mr Erich Khunuchab
Senior Statistician: Price Statistics
25 June 2020
NAMIBIA PRODUCER PRICE INDEX-FIRST QUARTER 2020
Outline of the presentation
• INTRODUCTION
• DEFINITION
• TYPES OF PPI
• USES OF PPI
• RESULTS FOR Q1 OF 2020
• NCPI V NPPI Water comparison
• The NPPI is the first of it’s kind to beproduced by NSA since independent Namibiaand is aimed at replacing the South AfricanPPI which has been used to deflate theNational Accounts series from to eliminateprice changes.
• December 2015 as base period.
• Frequency of data collection, disseminationand publication.
BACKGROUND
The Producer Price Index (PPI) measure the rate ofchange in the prices of goods and services bought andsold by local producers.
The PPI is designed to measure the average change inthe price of goods and services either as they leave theplace of production or as they enter the productionprocess and it does not include imported products.
PPI - is defined as a measure of the change in the prices of goods and services either as they leave the place of production or as they enter the production process
DEFINITION
• INPUT PPI measures the rate of change in the prices of the inputs of goods and services purchased by the producer
• OUTPUT PPI measures the rate of change in the prices of products sold as they leave the producer
NPPI is based on Output PPI
TYPES OF PPI
Mainly
To monitor short and medium term inflationary trends
A deflator in the compilation of the National Accounts
Contract price adjustments and wage negotiations
Required by international organization such IMF for economic monitoring and comparison purposes
Analytical tool for businesses/researchers
USES OF PPI
• Manufacturing for cement, lime and plaster
• Electric power generation, transmission and distribution
• Water collection, treatment and supply
SELECTED INDUSTRIES
NPPI: Manufacture of cement, lime and plaster (Dec 2015 = 100)
100.5 101.5 101.7102.3
104.0
107.4107.4 107.4
108.1 109.5
101.9
98.1 98.1
92.0
94.0
96.0
98.0
100.0
102.0
104.0
106.0
108.0
110.0
112.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019 2020
Annual inflation for Electric power generation, transmission and distribution
-17.6
79.8
79.8
2.9
2.9
-23.9-23.9
-40.0
-20.0
0.0
20.0
40.0
60.0
80.0
100.0
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2017 2018 2019 2020
Infl
atio
n
NPPI: Quarterly NPPI indices of Water collection, treatment and supply (Dec 2015 = 100)
100.0
110.1
122.5
136.0144.3 144.3
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019 2020
0.0
20.0
40.0
60.0
80.0
100.0
120.0
140.0
160.0
Ind
ex
NCPI vs NPPI: Water indices comparison
80
100
120
140
160
180
200
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019 2020
Ind
ex
Water, sewage, household etc (NCPI) Dec 12 = 100 NPPI water Dec 15 = 100
NCPI vs NPPI: Electricity indices comparison
60
80
100
120
140
160
180
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1
2016 2017 2018 2019 2020
Ind
ex
Electricity (PPI) Dec 2015 =100 Electricity charges (CPI) Dec 2012 = 100
• To include other industries
• To include more establishment
Plan for the future
Next release: SEPTEMBER 2020 NPPI
FOR MORE INFORMATION
Tel: +264 61 431 3200
Fax: +264 61 431 3253
Email: [email protected]
www.nsa.org.na
Up-coming NPPI release
Thank you!