The Index of Producers’ Prices expresses the current composite weighted prices of commodities of local manufacturers as a percentage of the base year.
Producer Price Tables
Methodology and Usefulness
Concepts and Definitions
The Producer Price Index is the current composite of weighted prices of commodities at the sub-sector level of industries of local manufacturers as a percentage of the base year (1978).
Scope of Data
The Producer Price Index covers price changes of domestically manufactured goods, presented as industry selling price indices, according to the major industry groupings in the Trinidad and Tobago System of Industrial Classification (TTSIC – modified version of the ISIC rev 2), on a 1978 weight and reference base. The sample survey size was originally 119 establishments, however, the current sample size is 82.
Indicator Items were selected based on commodities whose total sales combined amounted to 70% of the industry’s sales. However, there has been no recent updates to the basket or the coverage of establishments.
Classification and Sample Design
The sample was selected on a judgmental basis from updated Business Register list of establishments employing 10 or more persons (sample frame) for each of the 32 industries in the TTSIC (based on ISIC, Rev.2), and grouped into 8 major divisions:
|Division 1||Food Processing|
|Division 2||Drink & Tobacco|
|Division 3||Textiles, Garments & Footwear|
|Division 4||Printing, Publishing & Paper Converters|
|Division 5||Wood & Related Products|
|Division 6||Chemical & Related Products|
|Division 7||Assembly Type & Related Industries|
|Division 8||All Other Industries|
The Producer Price Index is valued at Producers’ (Seller) Prices.
Source of Data
A judgement or purposive sample was employed to select eighty-two (82) Manufacturing Firms from the Annual Register of Establishments employing 10 or more persons.
The calculation of weights for the Producer Price Index are at two levels: the industry weights and the item (indicator) weights. The derivation of the Industry weights are from the industry’s contribution to total value added for the year 1976. The item weights are the proportion of the value of sales of that item to the total value of sales reported by firms for the items within the industry.
The Producer Prices Index is compiled by using a base weighted form of the Laspeyres formula.
Prices are collected quarterly during the first week of the first month of the quarter under review, using questionnaires with detailed item specifications.
Periodicity and Timeliness
The Producer Price Index is a Quarterly series and is published six (6) months after the quarter under review
Users can make annual comparisons to the implicit prices from GDP estimates for the corresponding industry groups.