Stats NZ has a new website.

For new releases go to

www.stats.govt.nz

As we transition to our new site, you'll still find some Stats NZ information here on this archive site.

  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+
Appendix 1: glossary of terms

Key terms and definitions relating to the producers price index (PPI).

All industries index: The index series showing price movements for the weighted combination of all industry indexes.

ANZSIC06: Australian and New Zealand Standard Industrial Classification 2006.

Basket of goods and services: The representative selection of goods and services for a price index, including product specifications and expenditure weights.

Building block structure: A hierarchical structure used to organise the PPI indexes. Under this structure commodity indexes feed into industry indexes, which in turn feed into the all industries index.

Commodity: A good or service, for which a price is collected, commonly referred to as an item.

Commodity Data Collection Survey: A survey that collects income and expenditure information, by commodity, from a representative sample of businesses in each industry of the economy.

Deflator: A price index used to remove the effect of price change so we can measure change in the volume of goods and services produced in the economy.

Fixed weight price index (or base-weighted index): A price index in which the quantity of an item purchased is assumed to be constant or fixed at the weight reference period. The PPI is a fixed-weight index, with the industry and NA06CC commodity weights updated annually.

Imputation: The estimation/calculation of an unknown price (or quantity) based on relevant available information.

Index number: A weighted average of the price ratios of selected goods, services, commodities, or financial assets measured over time.

Industry: Collectively organised economic activity as defined by the Australian and New Zealand Standard Industrial Classification 2006 (ANZSIC06). An industry outputs index includes commodities of goods and services produced within an industry. Also included is capital formation, which is capital work undertaken by a firm’s own employees.

Index reference period: The reference period used for comparison of index numbers. The index reference period for the PPI is set to 1000.

Inflation: An increase in the general or average level of prices of goods and services over a period of time.

Item: A good or service for which a price is collected/calculated.

Judgement sampling: The selection of items to price using information from a variety of sources, including the Commodity Data Collection Survey and contacting suppliers. It involves an element of judgement in the selection process.

NA06CC: National Accounts 2006 Commodity Classification. The commodity classification used by National Accounts in their supply and use system.

NZSIOC: New Zealand Standard Industrial Output Categories. The primary output view for all aggregated outputs for industry data collected using ANZSIC06. NZSIOC was introduced to obtain standardisation across all aggregated economic outputs. With NZSIOC, we decided on what is considered to be the important minimum levels for producing our economic statistics.

Price reference period: The calendar quarter that the latest quarter's prices are compared with in order to calculate indexes.

Quarter: The PPI is produced on a calendar quarterly basis: March, June, September, and December quarters.

System of National Accounts 2008 (SNA08): The conceptual framework we use to compile New Zealand's national accounts. The SNA08 is jointly published by the United Nations, the Commission of the European Communities, the International Monetary Fund, the Organisation for Economic Co-operation and Development, and the World Bank. The SNA08 was first introduced into New Zealand accounts at the end of 2014.

Weight: The relative importance assigned to an item when compiling an index. Estimated based on the dollar value of production or intermediate consumption (price multiplied by quantity). It is an estimate of the overall significance of each of the different items in the price index basket of goods and services.

Weight reference period: The period of an index refers to the year or years from which the weighting data was derived.

  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+
Top
  • Share this page to Facebook
  • Share this page to Twitter
  • Share this page to Google+