Arab Republic of Egypt - Producer Price Index April/May 2011

V1.0

2015-09-03

Price Index series issued as a first P.I series of P.P.I based on year (2004/2005) to replace the Wholesale Price Index based on year (2000/1999) data starts from September 2007

2- Target purposes:

Measuring the changes in the domestic PPI levels of commodity & services, also considered as one of the short term economic indicators of inflation. As well as used as a factor of shrinking of national accounts and rely on it by various international organizations like IMF and ECB for comparisons, economic censorship, currency policy evaluation and economic analytical tool for every businessmen and researchers.

3- Producer Prices :

Basic prices that paid to local producers as an exchange for commodity and services which they produce in the production place, when delivered.

4-Price of Basic period :

Average prices of commodity & services for the fiscal year (2004/2005) as a base for the index chain of PPI .

5-Used weights in weighting :

Weights extracted by using the mean of years (2002/2003, 2003/2004) for the gross value of industrial, agricultural, services production to avoid the effects of the huge and sudden changes that influence the production of some economic activity in case of selecting one year

-Geographic area:

We took into accounts to represent all the production areas on the republic level without constraint to a certain geographic area when structuring the producer price index. Number of sources of collecting prices is 1330 establishment .

7- Commodity framework :

‌A- We took into accounts the most selling items and representing some economic activities, when select the commodity that will be in the producer price index .

‌B- Commodity framework includes 8 categories from the categories in the Economic activity in Arab Republic of Egypt for year 2006, to be in consistent with the framework of National accounts planning system for year 1993.

C- Number of commodity & services inside the composition of Producer price index reached to 758 commodities.

8- Divides of the figure :

· The PPI framework of commodity & services divided according to the manual of economic activity classification in the Arab Republic of Egypt for year 2006, and this is an Arabic version for the 4th edition of the international economic activity classification added to it two sections for the local use

· The framework includes 8th categories, 37 main sections and 116 sub-economic activities as follows:

‌A- Agriculture, forestry and fishing, includes two main sections.

‌B- Mining and quarrying, includes two main sections.

‌Manufacturing, includes 23 main sections.

D- Supply of Electricity, Gas and Steam

Air conditioning, includes one main section.

E- Activity of Water supply, Sewage networks wastes management & treatment, includes two main sections.

F- Transport and storage, include 4 main sections.

G- Activity of Food and accommodation services, includes two main sections.

H- Activity of Information & Communication, includes one main section.

· Along with the section of Economic activity there is two other sections derivative in order to reclassify the items of categories of Agriculture activity, forestry, fishing, mining, quarrying and manufacturing according to the modified statistical guideline of foreign trade sorted by the coordinated system of 2003, according to the customs tariffs issued by CAPMAS as follows :

(1) Divided according to final use :

includes 6 groups as follows:

Fuel

Raw material

Intermediate commodity

Non-durable commodity Consumer

Durables commodity Consumer

Investment commodity

(2)Divided according to manufacturing degree:

includes 5 main groups :

Fuel

Cotton

Raw material

Semi manufactured Commodity

Manufactured commodity

Aggregated data

Number of commodities & services inside the structure of PPI is 758 commodities.