International Merchandise Trade Index

FBoS Release No: 92, 2015
31st December 2015


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 2015 when compared with the June quarter of 2015:

  • The international merchandise terms of trade price index fell by 0.3 per cent;
  • Export prices for goods fell by 0.2 per cent and
  • Import prices for goods rose by 0.1 per cent.

Table 1: Summary

imtiSep15a

imtiSep15b

Commentary
The seasonally unadjusted international merchandise TOT index for the September quarter of 2015 stood at 102.8. This is a decrease of 0.4 per cent over the September quarter of 2014.
The export price index decreased by 0.5 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 June quarter of 2015 and September quarter of 2014 periods:

Export Price Index

imtiSep15cimtiSep15d

Changes over the June quarter of 2015

The overall Export Price Index [XPI] for the September quarter of 2015 stands at 104.3 a decrease of 0.2 per cent when compared to the June quarter of 2015 [104.5]. 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 1.1 per cent due to low export prices of gold;
  • Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes decreased by 0.8 per cent due to low export prices of sugar and sugar confectionery and
  • Live animals; animal products decreased by 0.4 per cent due to low export prices of milk and coral.

Changes over the September quarter of 2014

Compared to the September quarter of 2014 [104.8], the XPI for the September quarter of 2015 decreased by 0.5 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 3.4 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
  • Live animals; animal products decreased by 0.9 per cent due to low export prices of fish, milk and eggs.

Import Price Index

imtiSep15fimtiSep15e

Changes over the June quarter of 2015

The overall Import Price Index [MPI] for the September quarter of 2015 stands at 101.5 an increase of 0.1 per cent when compared to the June quarter of 2015 [101.4]. Contributing to this increase were higher prices recorded for the following categories and specific items:

  • Mineral products increased by 3.3 per cent due to high import prices of aviation fuel, kerosene, unleaded petrol, automotive diesel oil and industrial diesel oil;
  • Textiles and textiles articles increased by 1.1 per cent due to high import prices of fabrics made up of cotton and man-made staple fibres 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 0.7 per cent due to high import prices of sandals and slippers.

Changes over the September quarter of 2014

Compared to the September quarter of 2014 [101.6], the MPI for the September 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 4.1 per cent due to low import prices of gold jewellery and imitation jewellery;
  • Products of the chemical or allied industries decreased by 2.5 per cent due to low import prices of pharmaceutical product, spray paint, tile glue and essential oils and
  • 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 2.2 per cent due to low import prices of printer, brush cutter and computer.

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For Technical Notes refer to page 9.
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 December quarter of 2015 will be available by 31st March, 2016.