[Base: September Quarter 2008 = 100.0]
FBoS Release No: 18, 2015
30th March 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 for the same amount of exports.
Key facts
The following movements occurred in the December quarter of 2014 when compared with the September quarter of 2014:
- The international merchandise terms of trade index rose by 0.1 per cent;
- Export prices for goods rose by 0.3 per cent and
- Import prices for goods rose by 0.1 per cent.
Table 1: Summary
Commentary
The seasonally unadjusted international merchandise TOT index for the December quarter of 2014 stood at 100.4. This is an increase of 1.3 per cent over the December quarter of 2013.
The export price index increased by 1.2 per cent whereas the import price index fell by 0.1 per cent respectively.
There were significant price changes in the following export and import items when comparisons were made to the September quarter of 2014 and December quarter of 2013 periods:
Export Price Index
Changes over the September quarter of 2014
The overall Export Price Index [XPI] for the December quarter of 2014 stands at 139.7, an increase of 0.3 per cent when compared to the September quarter of 2014 [139.3]. Contributing to this increase were higher 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 increased by 1.3 per cent due to high export prices of footwear;
- 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 increased by 1.2 per cent due to high export prices of timber;
- Prepared foodstuffs; beverages, spirits and vinegar; tobacco and manufactured tobacco substitutes increased by 1.0 per cent due to high export prices of canned fish, corned mutton, sugar and sugar confectionery, mineral water and
- Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof increased by 1.0 per cent due to high export prices of cartons.
Changes over the December quarter of 2013
Compared to the December quarter of 2013 [138.0], the XPI for the December quarter of 2014 increased by 1.2 per cent. Contributing to this increase were higher prices recorded for the following categories and specific items:
- Vegetable products increased by 4.1 per cent due to high export prices of cassava, dalo, pawpaws, ginger, turmeric and tea;
- Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof increased by 2.8 per cent due to high export prices of cartons and
- 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 increased by 2.7 per cent due to high export prices of timber.
Annual 2014
The annual XPI for 2014 stands at 139.3, an increase of 1.1 per cent over the annual 2013 XPI of 137.8. Contributing to this increase were higher prices recorded for the following categories and specific items:
- Live animals; animal products increased by 2.6 per cent due to high export prices of fish, milk and fresh eggs.
Import Price Index
Changes over the September quarter of 2014
The overall Import Price Index [MPI] for the December quarter of 2014 stands at 139.1 an increase of 0.1 per cent when compared to the September quarter of 2014 [138.9]. 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 1.4 per cent due to high import prices of canned fish, milo, peanut butter, orange juice, tomato sauce, chicken feed and tallow;
- Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof increased by 1.4 per cent due to high import prices of photocopying paper, brown paper, and corrugated paper and paperboard;
- Textiles and textiles articles increased by 1.3 per cent due to high import prices of cotton, man-made staple fibres and clothing accessories 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 1.2 per cent due to high import prices of sandals and slippers.
Changes over the December quarter of 2013
Compared to the December quarter of 2013 [139.2], the MPI for the December quarter of 2014 decreased by 0.1 per cent. Contributing to this decrease were lower prices recorded for the following categories and specific items:
- Products of the chemical or allied industries decreased by 5.4 per cent due to low import prices of fertilisers, spray paint, tile glue and essential oils;
- Pulp of wood or of other fibrous cellulosic material; waste and scrap of paper or paperboard; paper and paperboard and articles thereof decreased by 2.2 per cent due to low import prices of photocopying paper, brown paper, and corrugated paper and paperboard;
- Natural or cultured pearls, precious or semi-precious stones, precious metals, metals clad with precious metal and articles thereof; imitation jewellery decreased by 1.4 per cent due to low import prices of gold jewellery and imitation jewellery and
- Base metals and articles of base metal decreased by 0.8 per cent due to low import prices of iron and steel articles of iron and steel.
Annual 2014
The annual MPI for 2014 stands at 139.2, an increase of 0.3 per cent over the annual 2013 MPI of 138.8. Contributing to this increase were higher prices recorded for the following categories and specific item;
For Technical Notes refer to page 10.
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 release for the March quarter of 2014 will be available by 30th June 2015.
