{"id":14021,"date":"2021-02-19T11:09:46","date_gmt":"2021-02-19T09:09:46","guid":{"rendered":"http:\/\/www.statssa.gov.za\/?p=14021"},"modified":"2021-02-19T11:09:46","modified_gmt":"2021-02-19T09:09:46","slug":"reweighting-and-rebasing-of-the-producer-price-index","status":"publish","type":"post","link":"https:\/\/www.statssa.gov.za\/?p=14021","title":{"rendered":"Reweighting and rebasing of the producer price index"},"content":{"rendered":"

19 February 2021<\/p>\n

The producer price indices (PPIs) for January 2021 will reflect updates to the basket and weights, and will be rebased to December 2020 = 100.<\/p>\n

Tracking price changes of locally produced goods, the PPIs cover the following industries: manufacturing; water and electricity; mining and quarrying; and agriculture, forestry and fishing. Industry-level weights are updated each year based on the value added of each sector to the overall economy as recorded in the GDP. Product weights for industries other than manufacturing are updated each year based on sales data sourced through government departments and industry bodies.<\/p>\n

Weight changes in manufacturing<\/strong><\/p>\n

Weights for products which serve either as an input to manufacturing processes (intermediate manufactured goods), or as a final output (final manufactured goods), are based on Stats SA\u2019s large sample survey of the manufacturing industry. The most recent survey was published in 2019 and covers the financial years of producers ending between July 2016 and June 2017. The current PPI product weights are based on the 2014 large sample survey, released in 2016.<\/p>\n

Tables 1 and 2 show the current and new weights for the main sectors of the manufacturing industry. Changes at publication level are marginal.<\/p>\n

Table 1. Current and new weights: Final manufactured goods (%)<\/em><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
Final manufactured goods<\/strong><\/td>\nWeight 2020<\/strong><\/td>\nWeight 2021<\/strong><\/td>\n<\/tr>\n
Food products, beverages and tobacco products<\/td>\n36,28<\/td>\n36,07<\/td>\n<\/tr>\n
Textiles, clothing and footwear<\/td>\n4,87<\/td>\n4,98<\/td>\n<\/tr>\n
Paper and printed products<\/td>\n7,35<\/td>\n7,49<\/td>\n<\/tr>\n
Coke, petroleum, chemical, rubber and plastic products<\/td>\n19,38<\/td>\n19,56<\/td>\n<\/tr>\n
Non-metallic mineral products<\/td>\n2,78<\/td>\n2,77<\/td>\n<\/tr>\n
Metals, machinery, equipment and computing equipment<\/td>\n14,22<\/td>\n14,13<\/td>\n<\/tr>\n
Electrical machinery and communication and metering equipment<\/td>\n3,72<\/td>\n3,68<\/td>\n<\/tr>\n
Transport equipment<\/td>\n9,25<\/td>\n9,19<\/td>\n<\/tr>\n
Furniture and other manufacturing<\/td>\n2,15<\/td>\n2,14<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Table 2.<\/em> Current and new weights: Intermediate manufactured goods (%)<\/em><\/p>\n\n\n\n\n\n\n\n\n\n
Intermediate manufactured goods<\/strong><\/td>\nWeight 2020<\/strong><\/td>\nWeight 2021<\/strong><\/td>\n<\/tr>\n
Textiles and leather goods<\/td>\n4,60<\/td>\n4,10<\/td>\n<\/tr>\n
Sawmilling and wood<\/td>\n24,74<\/td>\n25,50<\/td>\n<\/tr>\n
Chemicals, rubber and plastic products<\/td>\n32,07<\/td>\n30,65<\/td>\n<\/tr>\n
Glass and glass products<\/td>\n3,39<\/td>\n3,49<\/td>\n<\/tr>\n
Basic and fabricated metals<\/td>\n32,01<\/td>\n32,98<\/td>\n<\/tr>\n
Recycling and manufacturing not elsewhere classified<\/td>\n3,19<\/td>\n3,28<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

Basket changes in manufacturing<\/strong><\/p>\n

The weights determine what products should comprise the basket of goods that create the elementary indices of the PPI. The number of products in final and intermediate manufacturing combined will increase from 215 to 228, as broken down in Table 3.<\/p>\n

Table 3. Number of products in current and new PPI manufacturing baskets <\/em><\/p>\n\n\n\n\n\n
<\/td>\nCurrent basket <\/strong><\/td>\nNew basket <\/strong><\/td>\n<\/tr>\n
Final manufacturing<\/td>\n180<\/td>\n192<\/td>\n<\/tr>\n
Intermediate manufacturing<\/td>\n35<\/td>\n36<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

The following items have been included in the PPI product basket:<\/p>\n

Final manufactured goods<\/u><\/p>\n