International Merchandise Trade Index

FBoS Release No: 90, 2017

29th December 2017


The Terms of Trade [TOT] is a ratio of two price indexes: one for exports and the other for imports. A rise in the index means that Fiji can buy more imports from the same amount of exports.

Key facts
The following movements occurred in the September quarter of 2017 when compared with the June quarter of 2017:
• The international merchandise terms of trade price index rose by 0.1 percent;
• Export prices for goods fell by 0.1 percent; and
• Import prices for goods fell by 0.2 percent.

Table 1: Summary

imtisep17a

Commentary

The seasonally unadjusted international merchandise TOT index for the September quarter of 2017 stood at 102.7. This is a decrease of 0.3 percent over the September quarter of 2016.
The export price index decreased by 0.4 percent and there was no change recorded for the import price index.

Export Price Index

imtisep17b

There were significant price changes in the following export and import items when comparisons were made to the June quarter of 2017 and September of 2016 periods:

 

Changes over the June quarter of 2017

The overall Export Price Index [XPI] for the September quarter of 2017 stands at 104.4, a decrease of 0.1 percent when compared to the June quarter of 2017 [104.5]. Contributing to this decrease were lower prices recorded for the following categories and specific items;

  • Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof decreased by 1.2 percent due to low export prices of cartons; and
  • Base metals and articles of base metal decreased by 0.8 percent due to low export prices of iron and steel articles of iron and steel; and
  • Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes decreased by 0.5 percent due to low export prices of soya bean and
  • Textiles and textiles articles decreased by 0.5 percent due to low export prices of fabrics made up of cotton and clothing accessories

Changes over the September quarter of 2016
Compared to the September quarter of 2016 [104.8], the XPI for the September quarter of 2017 decreased by 0.4 percent. Contributing to this decrease were lower prices recorded for the following categories and specific items:

  • Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery decreased by 7.2 per cent due to low export prices of gold;
  • Mineral products decreased by 5.8 per cent due to low export price of cement. and
  • Base metals and articles of base metal decreased by 0.4 percent due to low export prices of iron and steel articles of iron and steel; and

Import Price Index

imtisep17c

Changes over the June quarter of 2017

The overall Import Price Index [MPI] for the September quarter of 2017 stands at 101.7, a decrease of 0.2 percent when compared to the June quarter of 2017 [101.9]. Contributing to this decrease were lower prices recorded for the following categories and specific items:

  • Footwear, headgear, umbrellas, sun-umbrellas, walking-sticks, seat-sticks, whips, riding-crops and parts thereof; prepared feathers and articles made therewith; artificial flowers; articles of human hair decreased by 1.9 percent due to low import prices of sandals and slippers; and
  • Animal or vegetable fats and oils and their cleavage products; prepared edible fats; animal or vegetable waxes decreased by 1.7 percent due to low import prices of soya bean oil, palm oil, canola oil and vegetable oil and
  • Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof deceased by 1.7 percent due low import prices of paperboard and paperboard articles.

Changes over the September quarter of 2016

There was no change in the MPI for the September quarter of 2017 [101.7], when compared to the MPI for the September quarter of 2016 [101.7].

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For further enquiries, please contact Mr.Sitiveni Sikivou on email   or telephone 331 5822 (ext. 386 239) or direct line 323 0839.

The International Merchandise Trade Indexes (Prices) release for the December quarter of 2017 will be released in March, 2018.