International Merchandise Trade Index

FBoS Release No: 10, 2016
31st March 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 December quarter of 2015 when compared with the September quarter of 2015:

  • The international merchandise terms of trade price index fell by 0.1 per cent;
  • Export prices for goods rose by 0.1 per cent and

  • Import prices for goods rose by 0.2 per cent.

Table 1: Summary

imtiDec15a

imtiDec15b

Commentary

The seasonally unadjusted international merchandise TOT index for the December quarter of 2015 stood at 102.7. This is a decrease of 0.5 per cent over the December quarter of 2014.
The export price index decreased by 0.7 per cent and the import price index fell by 0.1 per cent.
There were significant price changes in the following export and import items when comparisons were made to the September quarter of 2015 and December quarter of 2014 periods:

December Quarter Highlights

Export Price Index

imtiDec15c

Changes over the September quarter of 2015

The overall Export Price Index [XPI] for the December quarter of 2015 stands at 104.4 an increase of 0.1 per cent when compared to the September of 2015 [104.3]. 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 0.9 per cent due to high export prices of sugar and sugar confectionery, cereals and noni juice;
  • Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof increased by 0.2 per cent due to high export prices of cartons and
  • 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 increased by 0.2 per cent due to high export price footwear.

Changes over the December quarter of 2014

Compared to the December quarter of 2014 [105.1], the XPI for the December quarter of 2015 decreased by 0.7 per cent. Contributing to this decrease were lower prices recorded for the following categories and specific items:

  • Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes decreased by 2.5 per cent due to low export prices of sugar and sugar confectionery;
  • Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery decreased by 2.3 per cent due to low export gold and
  • Live animals; animal products decreased by 1.2 per cent due to low export prices of fish, milk, and eggs.

Annual 2015 Highlights

imtiDec15d

The annual XPI for 2015 stands at 104.5, a decrease of 0.3 per cent over the annual 2014 XPI of 104.8
Contributing to these decrease were higher 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 3.1 per cent due to low export gold;
  • Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes decreased by 2.4 per cent due to low export prices of sugar and sugar confectionery and
  • Products of the chemical or allied industries decreased by 0.7 per cent due to low export prices of pharmaceutical product, and essential oils.

 

 

 

 

 

 

December Quarter Highlights

Import Price Index

imtiDec15e

Changes over the September quarter of 2015

The overall Import Price Index [MPI] for the December quarter of 2015 stands at 101.7 an increase of 0.2 per cent when compared to the September quarter of 2015 [101.5]. Contributing to this increase were higher prices recorded for the following categories and specific items:

  • Wood and articles of wood; wood charcoal; cork and articles of cork; manufacturers of straw, of esparto or of other plaiting materials; basketware and wickerwork increase by 1.6% due to high import prices of wood and articles of wood;
  • Live animals; animal products decreased by 1.2 per cent due to low import prices of lamb, fish and milk and
  • Mineral products increased by 0.9 per cent due to high import prices of aviation fuel, kerosene, unleaded petrol, automotive diesel oil and industrial diesel oil.

Changes over the December quarter of 2014

Compared to the December quarter of 2014 [101.8], the MPI for the December quarter of 2015 decreased by 0.1 per cent. 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 3.1 per cent due to low import prices of gold jewellery and imitation jewellery;
  • Machinery and mechanical appliances, electrical equipment and parts thereof, sound recorders, reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles decreased by 1.6 per cent due to low import prices of printer, brush cutter and computers and
  • Products of the chemical or allied industries decreased by 1.2 per cent due to low import prices of pharmaceutical product and essential oils.

Annual 2015 Highlights

imtiDec15f

The annual MPI for 2015 stands at 101.5, a decrease of 0.3 per cent over the annual 2014 MPI of 101.8. Contributing to this decrease were lower prices recorded for the following categories and specific item; 

  • Products of the chemical or allied industries decreased by 3.3 per cent due to low import prices of pharmaceutical product and essential oils;
  • Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and article thereof; imitation jewellery decreased by 2.8 per cent due to low import prices of gold jewellery and imitation jewellery;
  • Machinery and mechanical appliances, electrical equipment and parts thereof, sound recorders, reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles decreased by 1.8 per cent due to low import prices of printer, brush cutter and computer.

 

 

 

 

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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 March quarter of 2015 will be released by end of June, 2016.