Arab Republic of Egypt - Producer price index February/March 2017

V1.0

2017-05-05

This series of index was the first series of Producer price index (2004/2005) to replace Wholesale price index (1999/2000) from September 2007 data.

2-Targeted Purposes:

Measuring changes in local producers prices levels for goods and services. It is considered as one of the short-term economic indicators for inflation. It is also used as a shrinkage coefficient for national accounts and is accredited by many international organizations such as International Monetary Fund and Central Bank of Egypt for comparison, economic control, monetary policy evaluation and economic analysis tool for both Businessmen and Researchers.

3-Producers Prices:

They are the basic prices that are paid to local producers for goods and services which they produce upon delivery at production place.

4- Base period Prices:

Average prices of goods and services for Fiscal year (2004/2005) were taken as a basis for Producer price index series.

5 -Used weights in weighting:

The weights were extracted using the average for (2002/2003, 2003/2004) for total values of Industrial, Agricultural and Service production in order to avoid large and sudden changes effect affecting the production of some economic activities in the case of choosing one year.

6-Geographic area:

Representing of all production areas upon Republic level without being restricted to a specific geographical area were taking into consideration when issuing the producer price index. Number of prices collection sources are 1330 establishments.

7-Commodity Framework:

A- The best-selling commodities and representing of some economic activities were taking into consideration when selecting of incoming goods in issuing the producer price index.

B -The Commodity Framework included eight tabular categories of incoming categories in economic activity classification index in Arab Republic of Egypt in 2006 in order to be consistent with preparation of national accounts system 1993.

C - No. of incoming goods and service in issuing producer price index reached 785 items

8- Number Divisions:

• Commodity and Service Framework of producer price index was divided according to classification of economic activity in Arab Republic of Egypt in 2006 which is an Arabic translation of the fourth edition of international economic activity classification added to it two limits for local use.

• The framework includes eight tabular categories, 37 main divisions and 116 sub-economic activities as follows:

Agriculture, Forestry and Fishing and includes two main sections.

A) Mining and Quarrying and includes two main sections.

B) Manufacturing industries and includes 23 main departments.

C) Electricity, Gas, Steam and Air conditioning supplies and includes one main section.

D) Water supply, Sewage networks, Waste management and treatment activities and includes two main sections.

E) Transport, Storage and includes four main sections.

F) Food and accommodation services activities and includes two main sections.

G) Information and communication activities and includes one main section.

• In addition to this economic activity division, two other divisions were derived by reclassifying tabular categories items of Agriculture, Forestry, Fishing, Mining, Quarrying and Manufacturing activities in accordance to the revised statistical guide for Foreign trade prepared according to Harmonized System 2003 according to issued customs tariff by Central Agency for Public Mobilization. Statistics as follows:

(1) A division according to final use and It includes the following six groups:

Fuel

Raw materials

Intermediate goods

Non-durable consumer goods

Durable consumer goods

Investment goods

(2) A division according to industrialization degree:

It has five main groups:

Fuel

Cotton

Raw materials

Semi-processed goods

Finished goods

Aggregated data

No. of goods and services included in composing of producer price indices are 785 goods.