Arab Republic of Egypt - Producer Price Index bulletin

V1.0

2015-05-05

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

2- Target purposes:

Measuring the changes in the domestic PPI levels of commodity & services, and considers one of the short term economic indicators of inflation. As well as used as 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 business men and researchers.

3- Producer Prices :

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

4-Price of Basic period :

Average prices of commodity & services in 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 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 account to represent all 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 account the most selling items and represents some economic activities when selecting the commodity that will be in the producer price index .

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

C- Reached number of commodity & services inside the composition of Producer price index is 758 commodities.

8- Divides of figure :

· Section of special framework of commodity & services in the PPI according to the economic activity classification manual in Arab Republic of Egypt for year 2006, and it’s an Arabic translation for the 4th edition of international economic activity classification added to it two sections for the local use

· The framework including 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.

‌C- Manufacturing, includes 23 main sections.

D- Supply of Electricity, Gas and Steam

Air conditioning, includes one main section.

Eـ- 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 2003, according to the customs tariffs issued by CAPMAS as follows :

(1) Section according to final use :

includes 6 groups as follows:

Fuel

Raw material

Intermediate commodity

Consumer non-durable commodity

Consumer durables commodity

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 commodity & services inside the composition of Producer price index is 758 commodities.