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Producer Price Index Fourth Quarter Report 2016

5/3/2017
 

The Producer Price Index (PPI) measures average change overtime in domestic product prices. PPI is one of the key indicators used to reduce prices when estimating GDP at constant prices, where GDP is compared in a time series after excluding the impact of prices.

The Producer Price Index was launched for the first time in 2010 on a quarterly basis, and later in 2013, it was launched on a monthly basis.

The producer prices basket includes the following economic activities: 

1. Mining and quarrying; including oil and gas excavation with a 72.7% relative weight.

2. Manufacturing activity, which is produced locally, such as food industry, petroleum refining, iron and steel industry, petrochemicals and other industries; with a 26.8% relative weight.

3. Electricity and Water: namely; power plants, water desalination and purification stations, with a 0.5% relative weight.

Each basic activity falls into subgroups that are classified according to

CPC.ver 2.1 The PPI is calculated by using Laspeyres formula, and the average of 2013 prices as base year, where the weightages (relative importance) of industrial products values are calculated for this year.

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