INTERNATIONAL MERCHANDISE TRADE INDEX - June 2016

FBoS Release No: 59, 2016
30th September 2016


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 June quarter of 2016 when compared with the March quarter of 2016:

  • The international merchandise terms of trade price index rose by 0.5 percent;
  • Export prices for goods rose by 0.4 percent and
  • Import prices for goods fell by 0.1 percent.

Table 1: Summary

imtiJun16a

imtiJun16b

Commentary

The seasonally unadjusted international merchandise TOT index for the June quarter of 2016 stood at 103.0. This is a decrease of 0.1 percent over the June quarter of 2015.
The export price index decreased by 0.2 percent and the import price index fell by 0.1 percent.

Export Price Index

imtiJun16c

There were significant price changes in the following export and import items when comparisons were made to the March quarter of 2016 and June quarter of 2015 periods:

Changes over the March quarter of 2016

The overall Export Price Index [XPI] for the June quarter of 2016 stands at 104.3. An increase of 0.4 percent when compared to the March quarter of 2016 [103.9]. Contributing to this increase were higher prices recorded for the following categories and specific items:

  • Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes increased by 2.3 percent due to high export prices of sugar and sugar confectionery;
  • Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof increased by 1.3 percent due to high export prices of cartons and
  • Vegetable products increased by 1.0 percent due to high export prices of cassava, dalo and kava.

Changes over the June quarter of 2015

Compared to the June quarter of 2015 [104.5], the XPI for the June quarter of 2016 decreased by 0.2 percent. Contributing to this decrease were lower prices recorded for the following categories and specific items:

  • Mineral products decreased by 1.8 percent due to low export prices of aviation fuel, kerosene, unleaded petrol, automotive diesel oil and industrial diesel oil;
  • Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes decreased by 1.1 percent due to low export prices of fish, cereals and beverages;
  • Products of the chemical or allied industries decreased by 1.1 percent due to low export prices of pharmaceutical products, paints, essential oils, and soap and
  • Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery decreased by 1.1 percent due to low export price gold.

Import Price Index

imtiJun16d

Changes over the March quarter of 2016

The overall Import Price Index [MPI] for the June quarter of 2016 stands at 101.3. A decrease of 0.1 percent when compared to the March quarter of 2016 [101.4]. Contributing to this decrease were lower prices recorded for the following categories and specific items:

  • Live animals; animal products decreased by 1.8 percent due to low import prices of lamb, fish baits;
  • Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes decreased by 1.1 percent due to low import prices of tin fish, cereals, peanut butter, orange juice, tomato sauce and
  • Textiles and textiles articles decreased by 1.0 percent due to low import prices of man-made staple fibres and articles of apparel and clothing accessories.

Changes over the June quarter of 2015

Compared to the June quarter of 2015 [101.4], the MPI for the March quarter of 2016 decreased by 0.1 percent. Contributing to this decrease were lower prices recorded for the following categories and specific items:

  • Base metals and articles of base metal decreased by 1.4 percent due to low import prices of iron and steel and articles of iron or steel;
  • Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof deceased by 0.6 percent due to low import prices of paper and paperboard;
  • Vegetable products decreased 0.6 percent due to low import prices of onions, shallots, garlic, grapes and apples and
  • Live animals; animal products decreased by 0.6 percent due to low import prices of lamb, fish baits and milk.

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For further enquiries, please contact Ms. Uma Reddy on email or telephone 331 5822 (ext. 386 239) or direct line 323 0839.

The International Merchandise Trade Indexes (Prices) release for the September quarter of 2016 will be released in December, 2016.