PPI Appendix


Technical Notes

Producer Price Index (PPI)                        Measures the rate of change in the prices of goods produced in Fiji. It is a fixed weighted index with March Quarter 2011 = 100.0 and is calculated on a quarterly basis using the Fiji Standard Industrial Classification (FSIC).
Index Formula                                   The Producer Price Index is compiled using the Laspeyres index formula with March Quarter 2011 = 100.0 as the reference base period.
FSIC Fiji Standard Industrial Classification
n.e.c. Not elsewhere classified.





The following are the detailed steps involved in deriving the sample:

  1. A listing of the producing firms under different FSIC and their Gross Output [GO] was obtained from the establishment surveys.
  2. The Gross Output [GO] of the establishments under each FSIC were sorted using the Top-down approach (descending order).
  3. Relative contribution to total class was calculated (individual output divide by the total output for each FSIC) and then Cut-off sampling of 80% was used to select the establishments at class level.
  4. Weights were derived at the Section level, Division level, Group level and Class level.
  5. Re-weighting was done and establishments below the cut-off were eliminated.
  6. Weights of the deleted establishments were re-allocated (distributed proportionally) to the remaining establishments within the Class.
  7. Price relative was calculated as the ratio of the current quarter’s price to the reference base period price (which is March quarter or Quarter 1, 2011) for the same product.
  8. Group indices were calculated by weighting product indices with the relevant product weight, according to each group’s weighting structure, using the Laspeyres index formula.