The annual percentage change in the producer price index (PPI) for manufacturing of cement, lime and plaster was stagnant during the first quarter of 2020, compared to the 9.2% deflation recorded during the same period last year. The PPI measures the rate of change in the prices of goods and services bought and sold by local producers.
The PPI is designed to measure the average change in the price of goods and services – either as they leave the place of production or as they enter the production process – and does not include imported products.
The Namibian PPI for the first quarter indicated the index remained unchanged at 98.1 basis point since the final quarter of 2018, making it the lowest index obtained between Q1: 2016 and Q1: 2020, with the highest index of 109.5 recorded in quarter two of 2018.
“The prices for monitoring changes in the PPI behaviour are measured from the perspective of the producer. As a starting point, the NSA will produce and disseminate the three output NPPIs to measure the rate of change in the prices of products sold as they leave the producer,” said Namibia Statistics Agency statistician general Alex Shimuafeni.
The annual percentage change in the PPI for electric power generation, transmission and distribution recorded deflation of 24% in the first quarter of 2020 compared to 3% recorded in the first quarter of 2019.
During the first quarter of 2020, the index for electric power generation, transmission and distribution decreased to 116.1 from 152.5 registered in the first quarter of 2019. The annual percentage change in PPI for water collection, treatment and supply stood at 6% in the first quarter of 2020 compared to 11% during the same period last year.
The index for water collection, treatment and supply stood at 144.3 basis point during Q1, compared to 136.0 basis point recorded during the same period last year. Shimuafeni said the PPI is part of a suite of price indices in economic statistics, which are key and important price monitoring macroeconomic indicators.
Price instability introduces uncertainty into economic analysis and decision making, so the main use of the PPI is to minimise such uncertainty.
The main uses of PPI inter-alia include monitoring short-term inflationary trends; deflator in the compilation of the national accounts, and contract price adjustments and wage negotiations.
2020-07-22 13:55:39 | 3 months ago