{"id":2432,"date":"2014-02-26T11:44:15","date_gmt":"2014-02-26T09:44:15","guid":{"rendered":"http:\/\/beta2.statssa.gov.za\/?p=2432"},"modified":"2014-02-26T16:26:22","modified_gmt":"2014-02-26T14:26:22","slug":"changes-to-the-basket-and-weights-of-the-producer-price-index","status":"publish","type":"post","link":"https:\/\/www.statssa.gov.za\/?p=2432","title":{"rendered":"Changes to the basket and weights of the Producer Price Index, 25 February 2014"},"content":{"rendered":"

The January 2014 statistical release of the Producer Price Index (to be released on 27 February) will show changes to the weights and basket of the indices.\u00a0 The methodology of the new PPI series that was introduced last year is to update the weights on an annual basis.
\nThe PPI has weights at two levels.\u00a0 The first is at the industry level where the weights are determined by the relative contribution of each industry to the total value added in the economy.\u00a0 These are updated annually with information from the national accounts published at the end of the preceding year.<\/p>\n

Table 1. Changing weights of the Headline PPI<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n
PPI for final manufactured goods<\/b><\/td>\n2014<\/b><\/td>\n2013<\/b><\/td>\n2012<\/b><\/td>\n<\/tr>\n
Food products, beverages and tobacco products<\/td>\n\n

36,80%<\/p>\n<\/td>\n

\n

33,47%<\/p>\n<\/td>\n

\n

31,77%<\/p>\n<\/td>\n<\/tr>\n

Textiles, clothing and footwear<\/td>\n\n

4,08%<\/p>\n<\/td>\n

\n

4,30%<\/p>\n<\/td>\n

\n

5,02%<\/p>\n<\/td>\n<\/tr>\n

Wood and paper products<\/td>\n\n

8,76%<\/p>\n<\/td>\n

\n

8,23%<\/p>\n<\/td>\n

\n

8,27%<\/p>\n<\/td>\n<\/tr>\n

Coke, petroleum, chemical, rubber and plastic products<\/td>\n\n

16,84%<\/p>\n<\/td>\n

\n

17,22%<\/p>\n<\/td>\n

\n

19,73%<\/p>\n<\/td>\n<\/tr>\n

Non-metallic mineral products<\/td>\n\n

3,87%<\/p>\n<\/td>\n

\n

4,09%<\/p>\n<\/td>\n

\n

4,83%<\/p>\n<\/td>\n<\/tr>\n

Metals, machinery, equipment and computing equipment<\/td>\n\n

14,75%<\/p>\n<\/td>\n

\n

15,65%<\/p>\n<\/td>\n

\n

14,59%<\/p>\n<\/td>\n<\/tr>\n

Electrical machinery and apparatus, and subcomponents<\/td>\n\n

3,04%<\/p>\n<\/td>\n

\n

4,62%<\/p>\n<\/td>\n

\n

4,44%<\/p>\n<\/td>\n<\/tr>\n

Transport equipment<\/td>\n\n

9,51%<\/p>\n<\/td>\n

\n

10,55%<\/p>\n<\/td>\n

\n

9,26%<\/p>\n<\/td>\n<\/tr>\n

Furniture and other manufacturing<\/td>\n\n

2,35%<\/p>\n<\/td>\n

\n

1,87%<\/p>\n<\/td>\n

\n

2,09%<\/p>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

Weights are also allocated at the product level using a variety of data sources.\u00a0 Among the most important of these data sources are the large sample surveys (LSS) conducted periodically by Stats SA.\u00a0 The LSS (2011) for manufacturing was published in 2013.\u00a0 The sales value for each product determines its inclusion in the basket and its weight.\u00a0 Typically products comprising the cumulative top 80% of sales are eligible for inclusion.
\nThere will be 29 new items across the PPIs for intermediate and final manufacturing, plus a further two in agriculture and one in mining.\u00a0 Twenty-seven products are to be dropped from the manufacturing basket. A list is provided as Table 2.
\nIt should be noted that the base year for the PPI remains 2012.\u00a0 This update does not represent any break in series of the PPI, and the publication level indices will not differ from those introduced in 2013. All calculations, including contributions, for the January 2014 release are calculated using the new weights. The index values for January 2014 will be linked to the corresponding index values for December 2013 to ensure continuity.
\nStats SA has updated the PPI methods and sources manual to reflect these changes.\u00a0 It can be found at www.statssa.gov.za<\/a>.
\nTable 2. Changes to the PPI Basket<\/b><\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Products now included<\/b><\/td>\nProducts now excluded<\/b><\/td>\n<\/tr>\n
\u00a0<\/b><\/td>\n<\/tr>\n
Final manufactured goods<\/b><\/td>\n<\/tr>\n
Dog and cat food<\/td>\nProcessed chicken products <\/i><\/td>\n<\/tr>\n
Sweet biscuits<\/td>\nCorned meat<\/i><\/td>\n<\/tr>\n
Instant coffee<\/td>\nFrozen fish<\/i><\/td>\n<\/tr>\n
Spices and condiments<\/td>\nCanned tomato pur\u00e9e and paste<\/i><\/td>\n<\/tr>\n
Nutritional, dietary and formulated food supplements<\/td>\nOil cake<\/i><\/td>\n<\/tr>\n
Magazines<\/td>\nMaize corn starch<\/i><\/td>\n<\/tr>\n
Vitamins, hormones and antibiotics<\/td>\nSparkling wines<\/i><\/td>\n<\/tr>\n
Antiviral and retroviral drugs<\/td>\nBlankets<\/i><\/td>\n<\/tr>\n
Motor vehicle parts and components of plastic<\/td>\nTracksuits<\/i><\/td>\n<\/tr>\n
Industrial mouldings of plastic<\/td>\nBath soap<\/i><\/td>\n<\/tr>\n
Stationery goods of plastic<\/td>\nSelf-adhesive plastic products<\/i><\/td>\n<\/tr>\n
Gold jewellery<\/td>\nPlastic tableware and kitchenware<\/i><\/td>\n<\/tr>\n
Number plates and signs<\/td>\nNon-structural ceramic ware<\/i><\/td>\n<\/tr>\n
Containers of iron, steel or aluminium<\/td>\nCeramic tableware<\/i><\/td>\n<\/tr>\n
Locks, padlocks and parts thereof of base metal<\/td>\nCeiling boards<\/i><\/td>\n<\/tr>\n
Ventilation, ducting, booths, hoods of base metal<\/td>\nTombstones<\/i><\/td>\n<\/tr>\n
Heating and cooling systems<\/td>\nCaps and lids<\/i><\/td>\n<\/tr>\n
Refrigerating and freezing equipment<\/td>\nCo-axial cables<\/i><\/td>\n<\/tr>\n
Filtering or purifying machinery and apparatus<\/td>\nElectronic components and subassemblies<\/i><\/td>\n<\/tr>\n
Geysers<\/td>\nTanker bodies<\/i><\/td>\n<\/tr>\n
Stoves and ovens<\/td>\nBeds<\/i><\/td>\n<\/tr>\n
Electric motors<\/td>\n\u00a0<\/i><\/td>\n<\/tr>\n
Suspension, brakes, clutch, mountings and\u00a0 parts<\/td>\n<\/td>\n<\/tr>\n
Seats for motor vehicles<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n\n
Intermediate manufactured goods<\/b><\/td>\n<\/tr>\n
Ferro-chromium alloy<\/td>\nCotton yarn<\/i><\/td>\n<\/tr>\n
Semi <\/del>– <\/del>finished products and ingots of iron and steel<\/td>\nTwine, cord, rope and cables<\/i><\/td>\n<\/tr>\n
Angles, shapes, sections and similar products of iron or steel<\/td>\nCarbon black<\/i><\/td>\n<\/tr>\n
Unwrought or semi-manufactured gold<\/td>\nTanning extracts<\/i><\/td>\n<\/tr>\n
Manganese metal<\/td>\nWood preservatives<\/i><\/td>\n<\/tr>\n
\u00a0<\/b><\/td>\nCopper tubes and pipes<\/i><\/td>\n<\/tr>\n
\u00a0<\/b><\/td>\n<\/tr>\n
Mining<\/b><\/td>\n<\/tr>\n
Palladium<\/td>\n<\/td>\n<\/tr>\n
\u00a0<\/b><\/td>\n<\/tr>\n
Agriculture<\/b><\/td>\n<\/tr>\n
Lemons and limes<\/td>\n<\/td>\n<\/tr>\n
Grapes<\/td>\n<\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

 <\/p>\n

For further details please contact<\/p>\n

Patrick Kelly<\/p>\n

Executive manager: Price statistics<\/p>\n

patrickke@statssa.gov.za<\/a><\/p>\n

012\u00a0310 8290<\/p>\n

or<\/p>\n

Marais Kleu<\/p>\n

Manager: PPI<\/p>\n

MaraisK@statssa.gov.za<\/a><\/p>\n

012\u00a0310 8170<\/p>\n","protected":false},"excerpt":{"rendered":"

The January 2014 statistical release of the Producer Price Index (to be released on 27 February) will show changes to the weights and basket of the indices.\u00a0 The methodology of the new PPI series that was introduced last year is to update the weights on an annual basis. The PPI has weights at two levels.\u00a0   read more »<\/a><\/p>\n

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